Green Investment Bank

Green Investment Bank

Green investment Bank are the world's first green investment bank. They were created by the UK Government and capitalised with public funds. Green Bank use this finance to back green projects on commercial terms and mobilise other private sector capital into the UK’s green economy.

Area Served: Bristol, BANES, North Somerset, South Glos

The UK Green Investment Bank's investments help fund the creation of new green infrastructure.

They are a key part of the UK’s efforts to achieve its legally binding environmental targets. These targets require an investment of £330bn in the UK’s green economy by 2020. To date they are seeing investment in the UK’s green economy at less than half the required rate. The business model is not designed to plug the gap through  direct investments alone. The Bank must invest in a way which demonstrates the attractiveness of the opportunity to others. To do that they must show that it is possible to invest in projects which are green and profitable – this is  double bottom line.

Green Investment Bank's business model is as follows:

  •  investor's in UK based green infrastructure projects;
  •  Primarily invest in energy efficiency, waste and bioenergy, offshore wind, and onshore renewables;
  • Each investment must offer returns against our green and financial double bottom line - it must make a positive contribution to our five green purposes and it must provide commercial returns in line with the project's risk;
  •  invest on terms equivalent to others in the market - They do not offer low-cost finance or grants;
  • They work to mobilise other private sector capital, crowding in additional finance rather than displacing other investors; and we are committed to being innovative by building and strengthening the UK market, not simply serving it.

Investment Sectors Include: