The UK Green Investment Bank (GIB) has committed funds to 11 transactions with a total value of £2.3 billion in its priority sectors of offshore wind, energy efficiency and waste. The GIB has directly committed £635 million, resulting in a funding ratio that sees £1 from GIB mobilising almost £3 of private sector money.
Once operational, these investments will, on an annualised basis, save over 2.5 million tonnes of greenhouse gas emissions; the equivalent today of taking around 1 million cars off UK roads. They will also generate around 10TWh of renewable electricity; the equivalent today of the annual domestic electricity consumption of around 2.3m UK homes.
Projects that have been backed include:
* A new clean energy centre at Addenbrookes Hospital, Cambridge to help the NHS Trust reduce their emissions and save money;
* An equity stake in an offshore wind farm; and
* A local authority managed recycling centre in Wakefield, West Yorkshire to reduce waste sent to landfill and capture energy from waste.
The UK Green Investment Bank was launched in November 2012. With £3 billion of funding from the UK Government, it is the first bank of its kind in the world. It is a “for profit” bank, whose mission is to accelerate the UK’s transition to a greener economy, and to create an enduring institution, operating independently of Government.
Green Investment Bank Chief Executive, Shaun Kingsbury says: “We are essentially a start-up and have a long road ahead of us as we build an enduring bank, but we’ve hit the ground running. Our mission goes beyond simply investing our own funds; our job is to crowd-in money from other sources. I’m really pleased that we’ve managed to bring in almost £3 of private funding for every £1 we have committed.”
He continues: “The projects we are supporting demonstrate the full breadth of the opportunity ahead as we build a greener economy; from energy efficiency in the NHS to getting energy from food waste to building a dynamic market in offshore wind. These projects are good for the environment, good for growth and all funded on commercial terms.”