U.K. Green Investment Bank Funds $987 Million in 5 MonthsAlex Morales
The U.K. Green Investment Bank said it’s committed a total of 635 million pounds ($987 million) to 11 renewable energy and carbon-reduction projects.
The value of the deals including private-sector funding is 2.3 billion pounds, meaning every pound has leveraged almost three pounds of additional cash, it said today in an e-mailed statement. The total is for the five months through March 31, and includes already-announced loans to companies such as Shanks Group Plc and Drax Group Plc.
The bank, capitalized with 3 billion pounds, was set up by the government to help stimulate the renewable energy projects and carbon cuts needed to meet the nation’s binding targets of deriving 15 percent of all energy from renewables by 2020 and cutting emissions by 34 percent in 2020 from 1990 levels.
“This represents an excellent level of activity and shows the impact we can have in helping the U.K. towards a greener economy,” Chief Executive Officer Shaun Kingsbury said. “Our mission goes beyond simply investing our own funds; our job is to crowd in money from other sources.”
Kingsbury said in January that the bank may allocate all of its 3 billion pounds as soon as 2015. The lender last month said it plans to make joint investments with Masdar, Abu Dhabi’s state-owned renewable energy company.
The Green Investment Bank is prioritizing offshore-wind, energy-efficiency and waste projects. Once operational, the funding it’s already allocated will help cut 2.5 million tons of greenhouse gases a year -- the equivalent of taking a million cars off the road -- and generate enough renewable power to supply 2.3 million homes, it said.