The House of Common Library has published a paper on the Green Investment Bank (GIB). The paper covers the background to the GIB, its structure, priorities for investment and location, and the foundation of the GIB by means of the Enterprise and Regulatory Reform Bill.
From the Library’s summary of its paper:
“This note covers the Government proposals for a Green Investment Bank which will support green infrastructure investment.
Before the announcement of its creation in the March 2011 budgets there was debate between departments on the form the Bank would take and the level of finance provided to it. In budget it was announced the Bank would have an initial investment of £3bn and will not be allowed to raise its own capital until at least 2015. The Bank will be able to carry out a wide range of transactions – including equity, debt and risk mitigation products- and is expected to catalyse an additional £15 billion of investment in green infrastructure by 2014/15.
The Government published the five priority areas for investment for the bank during the current spending review period, together with the criteria for deciding on its location on 12 December 2011. It also announced the creation of an interim body, Green Investments UK, which will have £775 million available to invest from April 2012. The location of the Bank, Edinburgh and London, was announced in March.
Legislation that would enshrine the ‘green’ purpose of the bank, providing powers for it to operate including funding, and ensuring its operational independence from Government where announced in the Queens Speech, and included in the Enterprise and Regulatory Reform Bill published in May 2012.”