The UK’s Green Investment Bank (GIB) will start investing in poorer nations after the government gave it £200 million for a three-year pilot programme, the government said in a statement.
The funding will be separate from the £3.8 billion the government gave the bank upon its launch in 2012 to invest in domestic green infrastructure projects.
The bank said the pilot would:
- Initially target three regions: East Africa, South Africa and India
- Focus on investments in renewable energy and energy efficiency;
- Match GIB’s UK business model to invest on commercial terms and mobilise additional private sector capital
- Recruit a dedicated team to manage the project
The pilot money comes out of the UK’s climate finance commitment of £3.8 billion over 2010-2015 to help developing nations tackle global warming.
The UK’s climate minister Ed Davey said using the GIB would ensure government money is well spent and is able to tie in private sector cash to increase the overall financial flows.
“It is vital that we use public climate finance to catalyse private investment into developing countries. By working with the Green Investment Bank, DECC will be able to draw on its unique mix of investment expertise, commercial discipline and close alignment of green policy objectives to maximise the impact and effectiveness of UK climate finance,” he told the UK Parliament on Tuesday.
GIB will now begin the process of finalising the programme details and identifying suitable investment opportunities. All investments will be announced publicly, GIB said in a seperate statement.
By Ben Garside – email@example.com