Abundance boss Bruce Davis has backed the International Monetary Fund’s (IMF) argument that the government should focus on a green recovery and has suggested that crowdfunding platforms offer the best solution.
The IMF’s economic counsellor Gita Gopinath told the House of Commons Treasury committee that the government should prioritise spending on low carbon, green projects to create jobs and kickstart the economic recovery from Covid-19.
Davis (pictured), who is co-founder and managing director of Abundance Investment, the crowd bonds platform that offers ethical investment opportunities, backed the IMF’s argument and highlighted once again that crowdfunding can play a vital role in a green recovery.
“The IMF is giving a call to action to accelerate investment through green projects,” Davis said.
“Studies from London School of Economics and others have identified investment in green projects to be the most effective form of stimulus for economic recovery post Covid-19.
“It’s important there’s green investment in businesses and projects that are delivering in the real economy and crowdfunding platforms offer one of the most efficient ways to delivering money to businesses.
“Crowdfunding can definitely meet the challenges of delivering and supporting the stimulus into the economy.”
Earlier this week, Prime Minister Boris Johnson outlined plans for a “build, build, build” recovery, where the government will bring forward £5bn of capital investment projects, including roads, bridges, hospitals and schools to reboot Britain’s economy.
However, green investment was not part of this, although Chancellor Rishi Sunak is expected to deliver a mini-Budget this month which will place a green recovery high on the agenda.
Davis said he hopes that the government will listen to the IMF and prioritise green investment.
“I hope the government will recognise that not only is it an opportunity to back innovative new technologies such as tidal or carbon capture, it’s also an opportunity to invest in the basics such as energy efficiency which have the potential to deliver a job intensive recovery,” he said.
“Crowdfunding is, and can, take the lead on it. There is strong investor demand for green projects to finance the recovery.
“The majority of people back it, the IMF backs it, now it’s time for the government to get behind it and we hope they will.”