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UK Green Investment Bank open for business

The UK’s Green Investment Bank (UK GIB) officially opened on Wednesday morning, and two new investments were announced,Business Secretary Vince Cable unveiled the investment bank, which will prioritise the “green economy” with investment in businesses in environmental sectors.

The Government hopes to launch the UK as a leader in sustainable and efficient initiatives, by spearheading green infrastructure, and pushing for growth in the environmental industries.

UK GIB said it will invest an initial £8m in a North East project that will generate energy from waste, and hope to attract further private funding to this scheme to match the Government’s backing.

A Teesside-based plant for “Anaerobic Digestion” is the first of six similar projects planned over the next five years, and it will be the largest of its kind in the UK.

An investment of £5m will also be made to retrofit Kingspan’s UK Industrial facilities to support systems and services that will provide a reduction in energy consumption of up to 15%.

Fund managers, Sustainable Development Capital, will provide the investment in UK GIB’s first scheme supported in its £100m non-domestic energy efficiency programme.

UK GIB has set out an investment programme in small waste initiatives worth £80m, which will be distributed through fund manager, Greensphere Capital.

Previously, green investments were made on commercial terms by Business, Innovation and Skills’ UK Green Investments team, who have committed £180m to co-investments in green energy and waste schemes.

Dr Cable commented: “The Green Investment Bank - a key coalition pledge - is now a reality. It will place the green economy at the heart of our recovery and position the UK in the forefront of the drive to develop clean energy.

“Three billion pounds of government money will leverage private sector capital to fund projects in priority sectors from offshore wind to waste and non domestic energy efficiency, helping to deliver our commitment to create jobs and growth right across the UK.

“Having the headquarters in Edinburgh is a powerful vote of confidence in the Union, and a testimony to our commitment to helping Scotland lead the green revolution.”

Edward Davey, Secretary of State for Energy and Climate Change, said: “[UK GIB] will help attract the capital required to allow the green economy to blossom, encouraging investors to market and kick-starting low-carbon and energy efficiency projects.

“In combination with our electricity market reforms, there will be lasting economic benefit as a result, with new expertise and jobs created, that will give the UK a competitive edge.”

Lord Smith, who is the UK Green Investment Bank Chair, said: “The Green Investment Bank has the potential to be a game-changing component of the UK’s low carbon economy, and a profitable centre of excellence in specialist and renewable investment.

“I am confident that our excellent team will put its many years of expertise to work on building the foundations of that sustainable economy, and facilitating the important investments that will ensure its long-term good health.”

Corin Taylor, Senior Economic Adviser at the Institute of Directors, said: “The Green Investment Bank should help to unlock significant private funding to improve energy efficiency and give clean energy projects a boost. But even more important will be ensuring that the Energy Bill delivers the right environment for private investment in the renewables, nuclear and gas generation that the UK needs.”

This was posted in Bdaily's Members' News section by Miranda Dobson .