Green bank should raise more cash

Green industry experts also warned that the institution proposed by Ministers needed to be an independent bank – not simply a fund – in order to raise billions of pounds from private investors to channel into areas such as offshore wind.

Last week, Chancellor George Osborne confirmed there would be 1bn in Government funding for the green investment bank.

He said he hoped further funding would be raised by the future sale of state assets and from private investment.

The Aldersgate Group of green organisations has estimated that 4bn to 6bn in public and private funding is needed over the first four years of the bank to allow it to do its job.

The group said: "1bn alone without being topped up from any additional proceeds is in danger of being at a level where it can scarcely make enough difference to have the impact that is intended."