Green Investment Bank
Accelerating the transition to a low carbon economy
On 25 April 2013 the UK Government enshrined in Statute the UK Green Investment Bank (GIB) after a four year campaign coordinated by Transform UK, the alliance building wing of E3G. Now up and running the GIB is the world’s first public bank dedicated exclusively to financing low carbon and green infrastructure and business.
In April 2010 the UK Government allocated £3 billion in start up capital to the institution and soon after the GIB – operating in its ‘shadow form’ known as UK Green Investments – made its first investments. It’s priority sectors are industrial and domestic energy efficiency, offshore wind, waste and bioenergy. It was fully up and running as an independent institution, the UK Green Investment Bank by November 2012.
Four years ago, the first paper produced by E3G and Climate Change Capital set out the case for the GIB and Green Bonds. The campaign began one month later when a letter, coordinated by Transform UK, was published in the Guardian. It was signed by a coalition of NGOs and businesses calling on the Chancellor to include a GIB in the budget of March 2009. This was the start of an intensive 4 year campaign by E3G and the Transform UK alliance to get the institution set up. Cross party support was achieved before the election in 2010 and the new coalition Government then agreed to set up the GIB in legislation.
The GIB was not only E3G’s idea, we have also been at the heart of its development, from setting out the rationale, building consensus behind its design, helping overcome technical and political barriers and strengthening the legislation behind it.
This campaign leaves a legacy beyond simply the UK’s Green Investment Bank. Japan and Australia have already set up similar institutions and many other countries are considering it, including China and the US. Green public banks are set to now play a major role in helping to leverage private investment into delivering a global low carbon economy.
Global Britain needs the Green Investment Bank
Abandoning the sale of the Green Investment Bank to the vampire kangaroo creates the opportunity to create a real Citizens’ bank. The public debate over the risk of selling the Green Investment Bank to Macquarie has snow balled over the last few weeks. A previously neglected privatisation process, followed...
Investigation finds Australian bank Macquarie could be poised to asset strip Green Investment Bank
An investigation has uncovered a process within the Green Investment Bank (GIB) establishing corporate structures commonly used in preparations for ‘asset-stripping’, ahead of its purchase by controversial Australian bank Macquarie from the UK Government for an estimated £2bn. Evidence uncovered of potential preparation for ‘asset...
Can green shoots beat a black horse? Selling the Green Investment Bank
The how, the what, and the who of selling the Green Investment Bank It has not been the greatest start to the year for financial market to say the least. One consequence of this, of course, is the delay in the further sale of the government’s stake in...
Government to chop the green out of the Green Investment Bank
GIB green purpose under threat as Government announces intention to repeal statutory provisions confirmed: GIB to become competitor rather than multiplier of private investment in UK economy. The government announced today that it intends to repeal legislation that ensures the Green Investment Bank is green. The announcement was made as...
Green Investment Bank privatisation threatens to undermine UK economic recovery
E3G, the think tank that originally developed the idea of the UK Green Investment Bank (GIB), today condemned plans by the Government to sell off a 70% stake in the institution as reckless. As the GIB prepares for its annual meetings in Edinburgh and London this week, E3G...
Japan launches Green Fund
On 10 June 2013 the Japanese Ministry of Environment issued a press release announcing the newly established Japanese Green Fund. The press release states that the fund will invest in businesses that are engaged in tackling global warming and decreasing carbon emissions. The Green Fund will be run by the Green Finance...
Green Investment Bank is enshrined in law
On 25th April 2013 the UK Government enshrined in Statute the UK Green Investment Bank (GIB). The GIB is the world’s first public bank dedicated exclusively to financing low carbon and green infrastructure and business. In April 2010 the UK Government allocated £3 billion in start up capital to the...
Green Investment Bank: The History
At the end of 2008 E3G was asked to think about how, if the UK were to apply a fiscal stimulus to the UK economy, it could be used to stimulate green investment. It quickly became clear that the institutional framework required to quickly and efficiently push public money out...
Clegg announces legislation to set up the Green Investment Bank & full, independent borrowing powers
Nick Clegg, the Deputy Prime Minster, announced today legislation to set up the Green Investment Bank and “full, independent borrowing powers” to borrow from the capital markets. The decision was strongly welcomed by Transform UK, the alliance of business, investors and charities who founded the campaign for the...
Treasury Clips Wings of Green Investment Bank
Months of speculation over whether the Green Investment Bank will be a proper bank or a fund was ended today when it was revealed in the Budget that the Government will set up the world’s first public green bank with total funding of £3 billion. Transform UK, the...