An influential report released this week recommends that the Carbon Trust and two other government-funded green nonprofits be folded into a larger Green Investment Bank to more effectively leverage private investment capital to reduce the U.K.'s carbon footprint.

The Green Investment Bank Commission recommends the government consolidate the Carbon Trust, Energy Technologies Institute and the Technology Strategy Board into the Green Investment Bank under a common brand in order to boost their efficiency and effectiveness. The commission also identified six funds to be brought under the GIB umbrella.

"Ad hoc government initiatives over the preceding decade have resulted in a large number of government funded quangos and funds backing low carbon innovation and commercialization in Britain," the report said. "While these efforts should be commended, the delivery of this support could be radically improved. The disparate collection of institutions and funds, often with similar objectives and very little accountability for the delivery of specific goals, has resulted in duplication and inefficiencies that rationalization would reduce."

The commission estimated the three quasi non-governmental organizations (quangos) have annual budgets of £185 million (US$276 million), while the various funds are worth about £2 billion (nearly US$3 billion). British media reports the government is working to identify £2 billion to pay for the GIB's formation.

The Carbon Trust, which has a track record of helping small and medium companies fund energy efficiency projects, in addition to its work with product carbon footprinting and labeling, responded Tuesday with a statement touting its accomplishments.

"On the same day the Wigley report was published, the Carbon Trust has announced that seven major energy companies are investing millions into our offshore wind technology accelerator to cut the cost of offshore wind by 10 percent," Carbon Trust Chief Executive Tom Delay said. "We are pleased to see the Wigley report has incorporated our ideas to increase private sector investment and has flagged our low carbon innovation and wider work with business as mission critical to delivering a low carbon economy.

"Our offshore wind and other Carbon Trust work successfully leverages eight times as much private sector investment as we receive in public funding, resulting in hundreds of millions of pounds for the low carbon economy," Delay continued. "We will be working closely with the Coalition Government over the coming months as they carefully consider the options around a new Green Investment Bank."

Similarly, the Energy Technologies Institute defended its work and clarified its role.

"We invest in large scale engineering projects on a commercial basis and are not a grant giving body," said ETI Chief Executive David Clarke. "In the last 18 months we have invested £60m in 24 technology development and demonstration projects and have another £100m of projects in development."

GreenBiz.com recently placed the Carbon Trust on a list of 10 green NGOs businesses should know about. BusinessGreen.com's James Murray argued this week the organization should be reformed, not scrapped.