UK government firms up plans for Green Investment Bank

In a speech given at Climate Change Capital in London, Clegg revealed how the world’s first Green Investment Bank (GIB) would be protected by legislation to ensure its operational independence and that it would be capitalised with an initial £3bn.

According to Clegg, the market for low-carbon and environmental goods and services was worth £3.2tn globally in 2008–09, and is forecast to continue to show strong growth.

He added that the UK’s green sector is currently the sixth largest in the world and would play a vital part in rebalancing the UK economy.

‘The bank is intended to bridge the gap between venture capital and the green economy, provide the finance for low-carbon infrastructure and lay the foundation for long-term, balanced growth,’ he said.

Possible early priorities for the bank are offshore wind, waste and non-domestic energy efficiency. Clegg added that the bank could be used to help deliver the first stages of the Green Deal, a scheme to help householders carry out energy-efficient modifications to their properties via loans.