All eyes are on the Copenhagen talks
IT has been a busy week for energy, as the British government turns its attention to the much-anticipated UN climate talks in Copenhagen next month. That’s why British banks – or at least the ones part-owned by the taxpayer – are lending to wind farms as the government also paves the way for a massive expansion of nuclear power.
German chancellor Angela Merkel and US President Barack Obama have both said they will attend the talks, although the latter will not be willing to sign up to a carbon-capping deal that the UN wants to pass, which will force the US to cut emissions more quickly than expected.
In the UK, the government hopes that about a third of Britain’s electricity will be sourced by renewables, mainly wind, by 2020. But a dearth of funding in the credit crunch has hurt the availability of loan finance for such projects.
“That’s why the EIB and bank loans to support onshore wind are tremendously positive,” said Mike Proffit, chief executive of Renewable Energy Holdings, which is building the biggest private wind farm in the UK.
He added: “The finance sector is recognising that wind is a relatively risk-free way to meet targets.”