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European Investment Bank Provided £5.5 billion In UK Investment In 2016

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The European Investment Bank provided over £5.5 billion to a record number of UK projects in 2016, compared to GBP 5.6 billion in 2015.

New financing agreed in 2016 represented the second largest annual engagement since the start of EIB lending in the UK in 1973.

The broad ranging engagement by Europe’s long-term lending institution supported investment across key sectors. This included backing construction of new social housing, transforming schools and university campuses, new investment to improve transport, water and energy infrastructure across the country and helping the next generation of innovative companies to expand.

“Last year the European Investment Bank’s support for crucial investment across the UK helped to improve essential services, enhance key infrastructure and unlock economic opportunities across the country. This included record financing for social housing investment in any European country, and the largest ever loans to universities. These will strengthen world class research and innovation at universities in Oxford, Edinburgh, Swansea, Bangor, Newcastle and UCL. More UK households will get green energy following the single largest ever EIB support for investment in offshore wind, and London commuters will benefit from new trains.” confirmed Jonathan Taylor, European Investment Bank Vice President.

New investment by housing associations across the country to build and improve social housing was supported by more than GBP 1.3 billion of long-term European Investment Bank loans agreed in 2016. This included first time lending to housing associations in southern England and Northern Ireland, as well as through the Housing Finance Corporation. The EIB is currently finalising new support for social housing in Scotland and London.

When signed last year the GBP 280 million EIB loan to University College London Bank to develop the Bloomsbury and UCL East campuses and GBP 200 million EIB financing to strengthen Edinburgh’s reputation as a global leader in education and research represented the largest ever EIB support for investment by European universities. The European Investment Bank also agreed support construction of seven new secondary schools in Bradford, Harrogate, Keighley, Bradford and Huddersfield that will benefit more than 8,500 Yorkshire school children and replace outdated and redundant buildings.

In recent years new EIB backed investment to harness the UK’s offshore wind resources has provided clean energy and created thousands of skilled jobs across the country. New EIB support for renewable energy related investment it the UK last year included GBP 500 million to reinforce electricity transmission in northern Scotland to improve connections between wind, wave and tidal renewable energy schemes and the national power network. GBP 525 million was also provided to support construction of the Beatrice windfarm off the Caithness coast that represents the single largest support ever for investment in an offshore wind project by the European Investment Bank. Energy lending included support for the Humber Gateway OFTO, the tenth UK offshore transmission link supported by Europe’s long-term lending institution over the last five years.

Recent European Investment Bank lending has supported investment in new Eurostar, Intercity and London Underground trains, backing for Crossrail and the Northern Line extension, and new tram networks in Manchester and Nottingham. New transport lending last year helped to finance new commuter trains in East Anglia and 60 new trains for use on London Overground routes.

As part of continued support for transformational investment in UK water infrastructure GBP 950 million was provided to support construction of the Thames Tideway project and backing capital investment by United Utilities across the North West of England.

The EIB is directly owned by the 28 European Union member states, including a 16 per cent share held by the UK government.

Since 1973 the European Investment Bank has provided more than GBP 100 billion for investment to improve public services, key infrastructure and unlock new opportunities for companies across the country.

Features

Green Tech Start-Ups: Are they the Future?

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Endless innovations are occurring in green companies, reinventing the industries they belong to. Gradually, they are beginning to amass more success and popularity. Consequently, these factors serve as a good indicator for green technology businesses, and their development must begin somewhere.

Green tech start-ups boast a wide array of opportunities for the economy and environment, while boosting recruitment openings with valuable services. While the technology industry is littered with high revenues and competition, the green tech start-ups are the clear sign of a cleaner future.

Fulfilling a Genuine Need

Many tech companies will market themselves as the ultimate tech giants to shift stock and make profit. As they all vie for attention through warped corporate rhetoric, there is only one ethical winner; the start-up green tech company.

Some argue that mainstream tech businesses have grown far too big, branching out into other industries and standing between the consumer and practically everything they do. However, green tech start-ups go beyond the shallow ambitions of a company, answering a call to sincerely help the customer and climate in any way they can. Of course, this is an attractive business model, putting customers at ease as they contribute to a humanitarian cause that is genuine through and through.

After all, empathy is a striking trait to have in business, and green tech start-ups maintain this composure by their very nature and purpose.

Creating Opportunities

Despite the pursuits for clean energy still needing more awareness, green tech is an area that is ripe for contribution and expansion. There’s no need to copy another company or be a business of cheap knockoffs; green tech start-ups can add a new voice to the economy by being fresh, fearless and entrepreneurial.

Technology is at its most useful when it breaks new ground, an awe that eco-friendly innovations have by default in their operations. Of course, green tech start-ups have the chance to build on this foundation and create harmony instead of climate crisis. Ultimately, the tech advancements are what revolutionise clean energy as more than an activist niche, putting theory into practice.

Despite the US gradually becoming more disengaged with green technology, others such as China and Canada recognise the potential in green technology for creating jobs and growth in their respective economies. The slack of others spurs them on, which creates a constant influx of prospects for the green tech sector. Put simply, their services are always required, able to thrive from country to country.

A Fundamental Foresight

Mainstream technology can seem repetitive and dull, tinkering with what has come before rather than turning tech on its head. Since 2011, technology has been accused of stagnation, something which the internet and petty app services seem to disguise in short reaching ideas of creativity.

However, green tech start-ups aren’t just winging it, and operate with a roadmap of climate change in the years ahead to strategize accordingly. In other words, they aren’t simply looking to make a quick profit by sticking to a trend, but have the long-term future in mind. Consequently, the green tech start-up will be there from the very start, building up from the foundational level to only grow as more and more people inevitably go green.

They can additionally forecast their finances too, with the ability to access online platforms despite the differing levels of experience, keeping them in the loop. Consequently, with an eye for the future, green tech startups are the ones who will eventually usher in the new era.

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Green Companies Find Innovative Ways to Generate Capital to Expand

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Green business is a booming opportunity for shrewd, environmentally conscious entrepreneurs. According to a white paper by the Association for Enterprise Opportunity, green businesses in the food service industry and other verticals are growing up to seven times faster than their conventional competitors.

“Green market segments in the United States are growing fast. Growth rates of “green” segments are outpacing conventional segments in every industry where we collected data – for example, over the decade ending in 2011, the U.S. organic food category grew at a rate of 238% compared to 33% growth for the overall food market, and most forecasts indicate that the shift to green will only accelerate across industries. Green business opportunities will be even more prolific over the next few years, because millennials are placing greater emphasis on environmentally friendly solutions.”

Unfortunately, many promising green companies are struggling to generate revenue. They need to be more creative to find funding opportunities in 2017.

Funding challenges green businesses face

After the financial crisis struck in 2008, banks and other traditional lending institutions became much more conservative about lending money. Many green businesses turned to grants provided by the Obama administration for funding. However, most of those grants have since been suspended under the Trump administration. Congress had difficulty resuming them, because most of the green businesses that were funded had a lower survival rate than the national average.

Without funding from either traditional banks or government grants, green businesses were forced to look for other financing options. Here are some options they have available.

Other lending institutions

While corporate banks are less likely to finance new businesses these days, many smaller financial institutions are more likely to assume the risk. Specialty lending institutions and credit unions with a strong social mission are often willing to invest in promising green businesses.

However, these lenders still require perspective borrowers to submit formal business plans and proposals on how they will use their funding. Too many of them have been burned by poorly managed green companies, so they must be cautious with lending to them.

Foreign lenders

Many other countries are more invested in green development than the United States. Companies with a presence in Norway or other European countries should consider seeking loans from lenders in those jurisdictions, such as Lånemegleren.

Green bonds

Green bonds are new financial instruments that have been developed specifically for financing green businesses. The Climate Bond Standard introduced a number of policies to ensure green bonds would be safe for investors and a reliable funding opportunity for green businesses around the world. By balancing the needs of both stakeholders, they have helped facilitate green financing.

The market for green bonds nearly quadrupled between 2013 and 2014. It rose to over $100 billion in 2015.

Green entrepreneur should find out if their business model is compliant with the climate Bond standard. They may be able to tap a growing source of funding.

Crowdfunding

Crowdfunding is another very popular way for all types of businesses to generate capital. Green businesses tend to benefit more than most other organizations, because crowdfunding investors tend to be more socially conscious. They are more eager to invest in companies that align with their outlooks on social causes. Since consumers are becoming more concerned about climate change and environmental preservation, they are more willing to invest in green businesses.

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