Green Investment Bank
Accelerating the transition to a zero carbon economy
There is growing interest from national and regional governments in creating Green Banks – or other Green Financial Institutions – in order to provide finance to priority activities for decarbonisation and the energy transition, alongside other policy instruments and market developments.
One challenge of implementing Green Banks, and similar institutions, is their perceived complexity. However, E3G’s experience– first in the UK and then in South Africa and Mexico – shows there are common design principles which are applicable everywhere, even as local contexts and institutions differ.
E3G was at the heart of developing the world’s first-ever Green Investment Bank in the UK and continues to work closely with it today. As the original public bank dedicated exclusively to financing low carbon and green infrastructure and business, the UK example has gone on to spur a movement, with over 12 publicly owned banks now established around the world.
The complexity of infrastructure decisions and investments require institutions with the capability to develop sectoral strategies and to adapt to changing contexts, all whilst complementing existing financial institutions. Delivering the low carbon transition requires institutional innovation.
E3G is developing a Green Bank Learning Platform to assist policymakers in developing such institutions. The Learning Platform will help fast-track Green Bank development by allowing policymakers to gain insight into international best practice. By showcasing key methods and tools used throughout the design and establishment of Green Banks - what was adopted, what was abandoned and more importantly how decisions were reached – the Learning Platform will allow policy makers to act swiftly.
The kaleidoscope of global green finance is being shaken- can the UK regain its lead?
Recent weeks have shown a real momentum for climate change action in the UK. Ironically, one of the UK’s leading industries – finance – risks being left behind as other financial centres rapidly develop as green finance hubs. The key difference between the UK and other countries is...
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...