A statement from Nicholas Stern on a green investment bank

Lord Stern of Brentford, the cross-bench peer, and I.G. Patel Professor of Economics and Government and chair of the Grantham Research Institute on Climate Change and the Environment at London School of Economics and Political Science (LSE), said: “Climate change and the transition to a low-carbon economy should be high on the agenda for every political party, not just to reduce the risks that result from greenhouse gas emissions but also to stimulate an exciting period of growth, creativity and innovation. I would be willing speak to the Conservatives’ advisory group about their ideas for a Green Investment Bank, just as I am continuing to contribute to discussions with the Labour government about policies on climate change. I should stress that I am not, and have no plans to be, an advisor to any political party.”

On a Green Investment Bank, Lord Stern said: “Low-carbon growth is the only viable growth option: high-carbon growth will kill itself. The transition to low-carbon growth is likely to become the most dynamic period in economic history – full of creativity and innovation. But it will need substantial investment, some of it risky in the early stages as learning takes place and policies become more settled. Thus there are strong arguments for a Green Investment Bank that can provide a public-private partnership to share risk and foster innovation.”

Notes for Editors

1. Nicholas Stern was Second Permanent Secretary at HM Treasury between 2003 and 2007. He also served as Head of the Government Economic Service, head of the review of economics of climate change (the results of which were published in ‘The Economics of Climate Change: The Stern Review’ in October 2006), and director of policy and research for the Commission for Africa. His previous posts included Senior Vice-President and Chief Economist at the World Bank, and Chief Economist and Special Counsellor to the President at the European Bank for Reconstruction and Development. He was recommended as a non-party-political life peer by the UK House of Lords Appointments Commission in October 2007. Baron Stern of Brentford was introduced in December 2007 to the House of Lords, where he sits on the independent cross-benches.
2. The Grantham Research Institute on Climate Change and the Environment  was launched at the London School of Economics and Political Science in October 2008. It is funded by The Grantham Foundation for the Protection of the Environment . Lord Stern is also Chair of the Centre for Climate Change Economics and Policy, which is hosted by the University of Leeds and the London School of Economics and Political Science. He is also I.G. Patel Professor of Economics and Government and Director of the India Observatory at London School of Economics and Political Science.