The Green Investment Bank is designed to accelerate private sector investment in the UK’s transition to a green economy. Offshore wind power generation, commercial and industrial waste processing and recycling, energy from waste generation, non-domestic energy efficiency and support for the Green Deal will be the first priority sectors for the Bank, subject to approval by the European Commission.
The criteria for deciding on a location for the bank were also published, with a view to a decision being made on a HQ site in February. The criteria say that the location should:
- be able to recruit and retain the specialist staff needed to run the organisation;
- enable the GIB to work closely with other parties involved in deals as well as other investment bodies, project developers and green technology providers and;
- be in a location that provides good value for money, to ensure that the GIB is cost effective.
The Business Secretary also announced that a new team will be set up within the Department for Business to drive investment in the UK’s green infrastructure until the Green Investment Bank is formally established.
The team, which will be called UK Green Investments (UKGI), will have access to the £100 million made available by the Government to invest in smaller waste infrastructure projects on a fully commercial basis. A further £100 million has been provided for investment in the non-domestic energy efficiency sector for the next financial year. UKGI will also be available to co-invest in offshore wind projects.
Business Secretary Vince Cable said:
“There is a great opportunity for British businesses to lead the transition to a green economy and stake a claim on a sector that has massive potential for growth. I’m pleased to see that more than 20 places recognise that the impact the Green Investment Bank could make, and are expressing an interest in being its home.
“I want to set up the Bank as soon as possible, so it can start accelerating investments in these key sectors and help British companies take advantage of these opportunities. Setting out the priorities for the Bank and establishing UK Green Investments for April 2012 are a major step forward.
The formal recruitment process for appointments to the Green Investment Bank board and senior management team will begin next month, with the appointment of the Chair being made in spring 2012.
Notes to editors:
At least 80 per cent of the funds committed by the Bank over the Spending Review period will be invested in the priority sectors, with the remaining funds invested in other green sectors.
The Government committed in the 2011 budget to fund the GIB with £3 billion over the period to 2015. The GIB will evolve over two key phases, preceded by a preliminary Government investment phase:
government investments managed by UK Green Investments from 2012 to State Aid approval;
establishment as a stand-alone institution following approval; and,
full borrowing powers from 2015, subject to public sector net debt falling as a percentage of GDP.
For more information on the Green Investment Bank, go to http://www.bis.gov.uk/greeninvestmentbank.
For information about registering a location bid for the Green Investment Bank go to http://www.bis.gov.uk/giblocation.
Locations that have so far indicated an interest in hosting the Green Investment Bank are:
The EU Waste Framework Directive calls for 50 per cent of household waste to be recycled by 2020 (the recycling rate in England in 2010-11 was 41 per cent) and for a 35 per cent reduction in biodegradable municipal waste landfill by 2020 compared with 1995 (the current proportion of UK municipal waste going to landfill is at 49 per cent, compared to an EU-27 average of 37 per cent). It is currently estimated that in order to meet and exceed EU landfill diversion targets and make the most of these opportunities, waste infrastructure in the UK needs around £2 billion of investment by 2020.
UK Green Investments will make investments under section 8 of the Industrial Development Act 1982. The investments will comply with state aid rules and will either be made on a fully commercial basis or under relevant state aid exemptions.
UK Green Investments are seeking expressions of interest from experienced fund managers to run the Government managed waste accounts totalling up to £100 million. To register your interest, go to: http://www.bis.gov.uk/ukgi.
BIS’s online newsroom contains the latest press notices, speeches, as well as video and images for download. It also features an up to date list of BIS press office contacts. See http://www.bis.gov.uk/newsroom for more information.
Notes to Editors
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