Following on from Monday’s Green Investment Bank (GIB) announcement, Business Secretary Vince Cable has now revealed some of the finer details. In his progress report, Cable reveals more about how the bank will be governed, and what the business model will look like.
According to the report, the GIB’s mission will be to accelerate private sector investment in the UK’s transition to a greener economy. Sectors eligible for intervention are likely to include offshore wind, non-domestic energy efficiency and waste. Work is ongoing to explore other sectors which will change over time, although it is important to note that solar power is not mentioned anywhere in the 36-page document.
Cable does mention that the bank will need to be approved by the European Commission before it can be established, which will take the form of a phased approach. Once it has been agreed, the GIB will be provided with an independent status as a lasting institution with a key public role.
To get the ball rolling as soon as possible the Government is expected to make direct, state-aid compliant investments in green infrastructure projects from April 2012, until a point when these investments can be transferred to the GIB.
Cable will also setting up an advisory group to provide strategic direction of the GIB, which will be chaired by Sir Adrian Montague.
Vince Cable said, “This is an opportunity for the UK to lead the way in the transition to a low carbon economy with the world’s first dedicated Green Investment Bank.
“The GIB will become a key component of this transition which needs significant investment over the coming decades.
“I’m delighted that Sir Adrian Montague has agreed to chair the advisory group. He has a wealth of experience that will help with the strategic direction of the GIB.”
Sir Adrian Montague, Chair of the advisory group said, “The Green Investment Bank is a genuinely radical innovation. The keys to the GIB’s success are going to be precise targeting and brilliant execution.
“It is both a privilege, and an irresistible opportunity, to have been asked by the Secretary of State to chair the new institution's Advisory Board. My first task is to advise on the membership of the Advisory Board. The GIB needs the best people in order to get off to a flying start.”