www.telegraph.co.uk 19th November 2010
Quoted from source:
‘Andrew Mitchell, the International Development Secretary, said aid money will be used in a new way to tackle climate change, as well as funding health and education. In a controversial move, the Coalition Government will be using tax-payer’s money to encourage private investors to put further funds towards ‘green’ development projects. However aid agencies and charities argue it is dangerous to involve big business in aid because they will only help people while there is the potential for profit. Mr Mitchell announced two public-private partnership projects in Africa and Asia to stimulate investment in renewable energy schemes. The UK Government has already put aside £2.9 billion of the aid budget to tackle climate change over the next four years. From this grants will be put in a central pot and then matched by private investors, renewable energy projects can then dip into the fund to develop hydro-electric plants and other schemes. Once the money is flowing private investors will see that there is profit to be made from investing in solar panels and other technologies for poor people. A ‘green market’ will be created for the first time in some of the most ‘energy poor’ areas of the world. Initial modelling of the fund estimates £9 of private investment could be raised for every £1 put in by the UK Government. DfID estimates that, over 25 years, the project could generate energy for millions of rural homes, create 60,000 jobs and save 150 million tonnes of carbon dioxide. The project is all part of international efforts to fight climate change by making sure that developing countries, which will produce the most carbon in the future, grow in a green way.’
