The UK Green Investment Bank plc (GIB) has today announced the investment impact of its first five months of operation (up to 31 March 2013):
- Committed funds to 11 transactions with a total value of £2.3 billion;
- Directly committed £635 million, resulting in a funding ratio that sees £1 from GIB mobilising almost £3 of private sector money;
- Supported transactions in all of its priority sectors: offshore wind, energy efficiency and waste; and
- Completed all transactions on fully commercial terms in line with co-investors.
The full green impact of these transactions will be announced at an annual stakeholder meeting in Edinburgh on 26th June, provisional results indicate that, 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; and
- 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.
GIB has also made progress in building an enduring institution:
- A headquarters has been established in Edinburgh and the Bank will move into a new permanent home in August;
- A team of 74 people has been recruited and it's expected that number will rise to 100 by the end of this calendar year;
- A strong transaction pipeline is in place for the coming year; and
- An investment alliance with Abu Dhabi backed clean energy firm, Masdar has been signed to bring in additional funding to support UK projects over the next seven years.
Green Investment Bank Chief Executive, Shaun Kingsbury said:
This represents an excellent level of activity and shows the impact we can have in helping the UK towards a greener economy. 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.
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.
UK Government Business Secretary, Vince Cable said:
After only five months in operation, the Green Investment Bank is already punching above its weight. Today's results are a pleasing start for this groundbreaking institution. They show that the Bank is doing precisely what we set it up to do - draw in and not shut out private sector capital. I now want to see the Bank move on to become a valued and integral part of the UK's financial infrastructure, playing a pivotal role in the financing of our transition to a green economy. We must seize the opportunities for jobs and economic growth in this sector before others do.
Scottish Secretary, Michael Moore said:
The early success of the UK Green Investment Bank - the first of its kind in the world - demonstrates the huge value that Scotland brings to the rest of the UK. It justifies the decision to headquarter the bank in Edinburgh, with its thriving green sector and long-established expertise in key areas of financial services such as asset management. With a high calibre team being recruited and a strong transaction pipeline in place, the UK Green Investment Bank will play a huge role in attracting green businesses - and all businesses - to Scotland.
Notes to editors
UK Green Investment Bank
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. View a summary of transactions that utilise GIB funding.