Scotland's financial sector is ideally placed to create the means to develop major green energy projects, First Minister Alex Salmond said last night in a speech entitled Choosing Scotland's Future as part of the Edinburgh Lecture series.

The FM said that the financial industry has the capacity to channel investment from surplus economies, and combat climate change by funding large scale infrastructure projects.

He outlined how financial innovation has a significant role to play in the development of a low carbon economy that encourages innovation, creates business opportunities, meets global climate change goals and provides thousands of green jobs. This would create new assets, not the inflation of existing assets - creating real wealth, not virtual wealth.

-- Advertisement --

During the lecture the FM also talked about the economic prospects for 2010 and beyond, highlight climate change as a key issue for the future and the contribution Scotland can make, and set out the Scottish Government's positive vision for independence and extending the powers of the Scottish Parliament.

Mr Salmond said: "The economic crisis, from which we are beginning to emerge, had as one of its root causes the misuse by the developed world of the excess liquidity coming from the emerging economies of Asia.

"For the future, we need to get into a virtuous circle where such liquidity is used in order to create infrastructure that will provide a steady income stream for the investors, and make a difference to climate change. New assets, not the inflation of existing ones. Real wealth, not virtual wealth.

"Financial innovation has a significant role to play in the development of a low carbon economy that encourages innovation, creates business opportunities, provides thousands of green jobs, and helps us achieve global climate change goals."

(GK/BMcc)