KfW, a government-owned bank from Germany, has reached an agreement with the UK Green Investment Bank (GIB) to provide advice and guidance on its business model and investment strategies.
The pair signed a memorandum of understanding in Frankfurt last week, which will ignite cohesion and allow them to share experience and expertise.
The aim of the £3 billion scheme is to guide the UK economy down a low-carbon and green path. And the deal struck with KfW, which is 80% federal-owned and 20% state-owned, will assist in achieving these goals.
“As a promotional bank with many years of experience in the area of climate and environmental protection, we are more than happy to advise and support the GIB with our expertise in these promising fields of business”, said KfW chief executive Dr Ulrich Schröder.
“In order for activities in environmental protection and climate finance to be successful, close bilateral links between the national European promotional banks are indispensable.
“We therefore look forward to our cooperation and to an even more intensive exchange with our British partners.”
KfW is regarded as one of the most influential green investors in Europe, having financially backed some of the continent’s largest renewable energy projects, including the Thornton Bank—a large-scale wind farm off the coast of Belgium.
Commenting on the drafting in of KfW to the GIB’s plans, Sir Adrian Montague, chairman of the advisory group of the GIB, said, “KfW has many years of successful operation as a development bank and is being very generous in the support it is offering.
“We look forward to building a strong relationship with KfW and other development banks in years to come.”
The GIB is expected to make its first green investment next month, before being properly established next year.
Development banks, such as the GIB and KfW, are sound proof that green and sustainable investment is hitting the mainstream agenda. Read our new Guide to Sustainable Investment to find out why.