The Government can get money from a banking system (kinda powertagged)

The world has a handful of years to act on the climate emergency. The UK is keen to be seen as a leader on the global stage, but is way off pace at home. The UK government is committed to delivering ​‘net zero’ emissions by 2050, but Labour and the Green Party have already pledged to bring this date forward to 2030. A programme like the Green New Deal is essential to marry radical climate action with social justice and the rebalancing of the economy. When wars need to be fought, or banks bailed out, governments do not hesitate to find the money. The government’s total annual spending is around 38% of GDP per year. Spending on the climate emergency each year only needs to increase to 2% of GDP in the short term, ramping up to 5% to deliver change at pace. Former Chancellor Philip Hammond attempted to criticise the new ​‘net zero by 2050’ target by saying that it would cost ​“more than £1 trillion”. This was a one-sided estimate that ignored the multitude of jobs, innovation and resilience it would unlock – and which in any event represents only 1.5% of GDP over that period. Governments can borrow very cheaply; the money they have available to spend can be increased by the things they spend money on, through higher tax receipts; and they can if needed rely on central banks for help. Provided their spending supports productive investment – the cornerstone of the Green New Deal – any arguments against borrowing are based on political ideology rather than economic fact. This pamphlet sets out five of the ways we should fund the Green New Deal: Public borrowing Multipliers: valuing future benefits Taxing those most responsible Re-directing dirty subsidies Transforming the Bank of England PUBLIC INVESTMENT DRIVING PRIVATE FINANCE The Green New Deal must be led by democratic choices. This requires greater state involvement and a much bigger role for direct government investment. That certainly does not mean that there is no role for the private sector in delivering the Green New Deal – far from it. The Green New Deal’s headline ambitions and determination to guide innovation and investment towards a clean and fair economy will help provide the certainty to private investors that they have been lacking after many years of half-hearted government climate policy.