Prime Minister congratulates Green Investment Bank on its 2nd anniversary as it passes £5bn milestone

31 Oct 2014



As the UK Green Investment Bank reaches its second anniversary, it passes the milestone of mobilising more than £5bn for new green energy infrastructure projects, benefiting more than 200 communities across the UK.

The UK Green Investment Bank plc (GIB), the first of its kind in the world, has now mobilised more than £5bn of investment into the UK’s green energy sector since its launch two years ago.

Yesterday, 30 October, GIB announced the 37th project it has funded, a £5.2m transaction to help global bank Citi reduce energy use at its data centre in Lewisham, London.

Prime Minister David Cameron said:

Under this Government, as part of our long-term economic plan to back business, create more jobs and secure a brighter future for Britain, we have become one of the best places for green investment anywhere in the world – and the Green Investment Bank has played an instrumental role in this.

Their achievements tell their own story – in just two years, getting 37 green infrastructure projects underway in the UK, committing more than £1.6bn of capital and mobilising a total of £5.2bn, and creating thousands of jobs.

I’m delighted to congratulate GIB on its second birthday.

GIB Chairman, Lord Smith of Kelvin, said:

In the two years since its launch, the Green Investment Bank has proved itself to be a successful policy initiative and a good business. We are helping to attract capital to UK green projects and helping to build vital new, modern, energy infrastructure for the country.

I am especially proud of the fact that we are investing in every part of the UK, from the Highlands of Scotland to Northern Ireland, Wales and all parts of England. We are investing wisely and the taxpayer will make good returns from us over the long-term. Every pound we invest and every project we support strengthens our position as the most active investor in the UK’s green economy.

In late October 2012, GIB began operations as the first dedicated green bank in the world. Created by the UK Government and backed with £3.8bn of public capital, its mission is to accelerate investment in green energy infrastructure while building an enduring institution.

Since then, GIB has committed to invest in 37 new projects with £1.6bn of its own capital. All of these investments have been both green (delivering a material, positive environmental impact) and profitable. GIB has now invested in all four nations of the UK and every English region.

For every £1 GIB invests, it mobilises a further £3 from the private sector, often from international investors. In total, GIB has backed projects that will see more than £5bn of new energy infrastructure projects go ahead. GIB has co-invested alongside more than 70 domestic and international financiers.

GIB only invests in projects which need its help to go ahead. Taking on the complex, challenging projects, GIB has been innovative in financing new technologies, supporting the development of new markets and creating new financial products.

GIB is the most active investor in the UK renewables sector with its 37 projects benefiting more than 200 communities around the UK. GIB is helping to support SMEs, creating more than 3,500 jobs and strengthening local supply chains.

Every one of GIB’s investments has been made on fully commercial terms, creating a positive demonstration effect for the wider market. GIB’s current portfolio of investments is expected to deliver an annual return of 9%. Once all its investments have completed construction and are operational, GIB is projected to make an annual operating profit in excess of £10m per annum.

The first green investment bank in the world - now being imitated internationally – GIB has set up an international network of green banks to support the growth of this new type of business.

Business Secretary Vince Cable said:

Government action was necessary to jump start investment in cleaner, greener technology and the bank is delivering. GIB’s expertise has given investors the confidence to back projects that simply would not have happened without it.

The Green Investment Bank is at the heart of our industrial strategy to create sustainable jobs and growth.

Shaun Kingsbury, chief executive, UK Green Investment Bank, said:

We have set out to be an innovative but always commercial investor. All of our investments have been both green and profitable but, more than that, each deal demonstrates to a significant international market that the UK renewables sector is a good place to invest.

Two years ago, nobody could say with any certainty that the idea of a green investment bank would work. I believe we have proven the case and, in doing so, made a real, lasting contribution to the UK’s energy security, lowering the costs of renewable energy and cutting the UK’s carbon emissions.

GIB’s investments are helping to bring about substantial reductions in carbon emissions as well as wider environmental benefits. Its ‘green’ achievements include:

  • Reducing greenhouse gas emissions by 3.6m tonnes, which is the equivalent of taking 1.6m cars off the road.
  • Producing 13.1 TWh of renewable energy, which is the equivalent energy consumption of 3.1m UK homes.
  • Preventing 1.5m tonnes of waste going to landfill sites, which is the equivalent of 1.5m homes’ waste.

Notes to editors

See the full range of GIB’s investments here.