Green Investment Bank projects worth over £10bn

The Green Investment Bank (GIB) has now committed £2.3bn to 58 green infrastructure projects.

The projects are now worth over £10bn, with figures from GIB showing that for every £1 it invested, £3 of third-party investment were mobilised.

The Green Investment Bank (GIB) was launched in November 2012, with the aim of investing in projects to accelerate the UK’s transition to a greener economy.

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Concerns were raised over UK Government plans to privatise the GIB after Business Secretary Sajid Javid hired Bank of America Merrill Lynch to advise on the financial details and timetable for a sale, with critics claiming a sale would weaken the bank's commitment to green investment.

The Financial Times reported that up to 70 per cent of the bank could be sold, with a sale price of well above £1bn.

On plans to privatise GIB, WWF Scotland director Lang Banks said: “Providing the GIB with additional borrowing powers could strengthen its ability to deliver more for the environment, but without suitable safeguards protecting its green mission, there's a real risk that the proposed privatisation will undermine its role in unlocking green investment.

“Whatever the outcome the green purpose of the GIB must be retained.”

Since its creation GIB has partnered with almost 100 co-investors. Projects have ranged from a £306.5m commitment to a £1.2bn offshore wind farm off the coast of Brighton, to a £6.3m Green Loan to finance the installation of 10,000 LED streetlights in Glasgow.

Shaun Kingsbury, GIB chief executive, said: “We operate as a specialist investor in a niche, but fast-growing area of financial services. Our focused team of market experts has moulded a flexible and creative investment strategy that has played a major role in establishing a commercial market for green infrastructure investment in the UK.

“Our experience offers important lessons for other countries looking to the private sector to help deliver their investment ambitions set out ahead of the Paris climate change conference.”

Niall Stuart, chief executive of Scottish Renewables, said: “In the three short years of Green Investment Bank's existence it has become an important source of capital to the renewable energy sector and initiatives that have contributed to cutting carbon emissions and driving energy efficiencies in the Scottish economy.

“From investing in major offshore wind projects to biomass boilers in whisky distilleries and LED street lighting, the GIB has demonstrated its diversity.

“We hope to see this commitment in renewable heat and electricity in Scotland continue as the bank moves into its next important phase.”