The Chancellor should make green infrastructure projects eligible for the Enterprise Investment Scheme (EIS) in the upcoming March Budget, says Growthdeck, a private equity investment firm.
Growthdeck believes that opening up EIS to green infrastructure projects again will help towards meeting the UK’s goal of bringing greenhouse gas emissions to net zero by 2050. Investment into these projects will provide SMEs with a much-needed boost in capital and create more jobs, benefitting the overall UK economy.
In 2015, the Government decided to ban investments into energy generating activities through EIS, including investment into renewable energy infrastructure. This was designed to encourage investments into higher risk trading companies, which were being overlooked by investors.
Growthdeck says, with the Government fast-tracking the ban on sales of new petrol and diesel cars from 2040 to 2030, there are concerns that the switch to electric vehicles is yet to be catered for. The UK will need to increase its supply of electric car charging points, which EIS could help towards funding, if the scheme were opened up again.
Read More: Private Equity Wire