Published on March 25th, 2015 | by Joshua S Hill4
UK Green Investment Bank To Help Finance International Climate Fund
March 25th, 2015 by Joshua S Hill
In a written statement published on the Department of Energy & Climate Change website, the UK’s Secretary of State for Energy and Climate Change has announced that the UK Government, along with the UK’s Green Investment Bank, will back a new pilot program to the tune of £200 million to invest in renewable energy and energy efficiency projects in developing countries.
In addition to facilitating investment in renewable energy and energy efficiency projects, the new pilot program will also support “economic growth, job creation, and development of reliable energy infrastructure.”
“This important new pilot programme will see [the Green Investment Bank] (GIB) investing outside the UK for the first time,” said Shaun Kingsbury, chief executive of UK Green Investment Bank. “I am confident that our unique business model, tried and tested in the UK, will have a very positive effect in developing countries, helping them to build vital new green energy infrastructure.”
The Department of Energy & Climate Change (DECC) highlighted the “very successful” efforts of the GIB in “mobilising private sector investment into the UK’s green infrastructure and economy.” Apparently, since its launch in 2012, the GIB has invested in 42 separate projects, “and committed £1.8bn of capital, which will deliver £6.6bn of new infrastructure investment.” Upon completion, these projects will save approximately 3.7 million tonnes of CO2 from entering the atmosphere per year.
This new £200 million will come from the £3.87 billion that the UK had already allocated to the IFC to finance such projects, in line with the joint mobilization of $100 billion of climate finance a year by 2020 developed countries such as the UK had committed to deliver to developing countries, sourced from both public and private sources.
The UK’s Green Investment Bank popped up several times in the news last year, thanks to two big announcements: First, in June, the GIB announced that it would raise £1 billion for a new fund to “acquire equity stakes in operational offshore wind projects in the UK,” going a long way to boosting the country’s offshore wind industry. Later in the year, UK Prime Minister David Cameron publicly congratulated the Green Investment Bank for mobilizing more than £5 billion for new green energy infrastructure projects.