We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
RSS FeedFinancial Planning

UK’s Green Investment Bank launched


Business secretary Vince Cable allocates £3bn in initial funding

Article comments

The UK's Green Investment Bank (GIB) was officially launched on Wednesday by business secretary Vince Cable. 

The bank will have its headquarters in Edinburgh and an initial investment capital of £3 billion along with major operations in London.

Launching the GIB, Cable said, “Government funds 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.”

He added that the bank would place the green economy "at the heart" of the UK's economic recovery. The business secretary also revealed the GIB’s initial investments.

These include a £8 million investment towards the construction of an anaerobic digestion plant in Teesside; the first of six planned over the next five years. The investment would be matched by £8 million from the private sector.

The GIB will also invest £5 million to fit manufacturer Kingspan's UK industrial facilities with systems that will reduce its energy consumption by 15 percent.

Advocating cautious optimism, Richard Spencer, head of sustainability at accounting body ICAEW, said the GIB is a significant commitment but the UK government needs to ensure that it is embedded in an overall package of joined up thinking and policymaking.

“It needs to be sending a clear and consistent message to investors, as there is still a lot of uncertainty here, the new Energy Bill notwithstanding,” he told CFOWorld.

"Whilst it is understandable that the initial investments focus on the proven end of the technology spectrum, we must ensure that this isn’t a missed opportunity to push the innovation agenda. We also need to be sure that this isn’t effectively substituting other funding,” Spencer added.

Environmental groups have also largely welcomed the move while insisting that more needs to be done. A spokesperson for WWF said he was encouraged by the launch.

Speaking to CFOWorld, he said, “Significant investment in renewable energy infrastructure and energy efficiency will be critical to meeting UK and Scottish climate targets and securing the green job opportunities available.”

Share:

Recommended Articles

Comments

UK’s Green Investment Bank launched
Financial Planning

Can finance rise to the challenge of major transformation?

Can finance rise to the challenge of major transformation?

Outdated finance processes, systems and competencies leave too many questions unansweredmore ..


Amazon invests $2bn more in India as online retail booms

The announcement comes a day after an Indian retailer got $1bn in fundingmore ..

Twitter buys NY image start-up Madbits

Madbits uses deep learning techniques to understand the content of an imagemore ..

Barclays posts 7% fall in pretax profits

Barclays’ costs fall 4.5% with increased digitisationmore ..

Budget: What business wants

CFOs are keen for the chancellor to avoid any uncertaintymore ..

Stay ahead of the curve

CFOs used to low interest rates ignore working capital optimisation at their perilmore ..

Send to a friend

Email this article to a friend or colleague:


PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.



In Depth
Can finance rise to the challenge of major transformation?

Can finance rise to the challenge of major transformation?

Outdated finance processes, systems and competencies leave too many questions unanswered more ..

In Depth
Interim CFO or consultant? The pros and cons

Interim CFO or consultant? The pros and cons

Ed Harding offers an insight into the life of an interim CFO and the advantages in driving transformation more ..

Advertisement

* *