Green bank set to open its doors

UK's first public bank earmarks offshore wind and energy from waste for first investments

The government's proposal for a Green Investment Bank has been approved by the European Commission.

It will be the UK's first public bank and is dedicated to transforming the carbon credentials of the electricity sector.

The latest milestone sees the project gain state aid approval from the Commission, which allows it to make investments on commercial terms. Final preparations are now underway for the bank to begin investing in the coming weeks.

Business secretary Vince Cable said: “This marks an important step. Funded with £3 billion of government money and mobilising additional private capital, the UK Green Investment Bank has the potential to make a significant contribution to the development of a green economy.”

The government hope that public investment in low-carbon infrastructure will kick-start the industry by lower the risks for private investors. The bank has earmarked offshore wind and energy from waste among the sectors first to benefit from the project.

Lord Smith, chair of the Green Investment Bank, said: “We have already made significant progress in building our teams and the necessary infrastructure for the Bank and we expect to be fully operational in the next few weeks.

“We clearly have challenges ahead but we have the people, the expertise and the capability to deliver on our priorities and create the foundation for a new climate of green investment.”

Since April, a precursor team working under the banner of Green Investments UK has committed £180 million of the project's capital in projects that will transfer to the bank in due course.