Tuesday, April 10, 2012

Now Britain is lending China - the world's second largest economy - millions of pounds to plant trees

British taxpayers are underwriting a multi-million-pound loan to help China plant trees as part of a project to tackle climate change.

The Treasury has agreed to a European Union scheme to help the country grow forests to compensate for its contribution to global warming.

The Luxembourg-based European Investment Bank – of which the Chancellor is a governor – has lent China £210million (250million euros) to kickstart the project.

Britain has agreed to underwrite the loan, covering 16p in every pound that is not paid back should the debt turn toxic – which would cost us more than £30million.

While EU member states – which are the EIB’s shareholders – are mired in trillions of pounds of debt and sluggish growth, China is now the second largest economy in the world and continues to expand by 2 per cent a year. Read More