London, December 12,
2011 - The establishment of the U.K.'s first Green
Investment Bank (GIB) is one step closer today as Business
Secretary Vince Cable published the criteria for deciding where the
Bank will be based and what the Bank's first priorities will be
until 2016.
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.
At least 80%
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 criteria for deciding on a location for the bank were also
published, with a view to a decision being made on a HQ site by the
end of March.
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, to accelerate
private sector investment in the green economy, 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 next financial year. UKGI
will also be available to co-invest in offshore wind projects.
"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," said Business Secretary
Cable.
"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," he added.
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.
The Government committed in the 2011 budget to fund the GIB with
£3bn over the period to 2015. The GIB will evolve over two key
phases, preceded by a preliminary Government investment
phase.
The establishment of the fund as a stand-alone institution
and full borrowing powers will take place from 2015, subject
to public sector net debt falling as a percentage of GDP.