Paul Lee: There is pent-up demand for infrastructure investment. Clearly, that infrastructure investment could, but does not have to, be green infrastructure.
Where is the market failure? Frankly, there is an issue with the bulk of infrastructure vehicles that are available for pension schemes and others to invest in. Those vehicles are structured very much like private-equity-style vehicles, so they have a specific, limited time span, and they tend to gear up the returns. The attractive thing about infrastructure investment for pension funds, insurers and other long-term investors is that they should provide bond-like returns in perpetuity, or something close to perpetuity. If the Green investment bank can assist the market to create infrastructure vehicles that deliver that bond-like return, then absolutely there is pent-up demand.