The chairman of the UK Green Investment Bank (GIB) has said the government-owned bank should eventually be owned by the private sector.
Speaking at the National Association of Pension Funds’ investment conference in Edinburgh last week, Lord Smith of Kelvin said he would like the GIB to ultimately diversify beyond equity investing into asset management and banking.
He said that although no such transactions are being considered, sovereign wealth funds had already approached the bank asking to buy equity.
He suggested that in 10 years’ time the board could ask the government to sell its stake in the bank.
“Let me dream a dream. I dream of the day when a majority of our equity is held by pension schemes like you – by sovereign wealth funds, too,” Smith said.
Launched in late 2012, the GIB is tasked with driving investment in low-carbon projects, with a focus on offshore wind developments, energy efficiency initiatives and the waste and bioenergy sectors.
The first bank of its kind, it operates with a double bottom line – it is as concerned with its green impact as its financial returns.
The bank is currently financed through equity worth £3.8 billion – to last until March 2016 – supplied by the government.
A report published last week by a committee of MPs urged the government to give more power to the GIB to borrow, in order to increase its investments.
The bank is currently restricted from borrowing by the Treasury until “government debt is falling as a percentage of GDP”. This was originally predicted to happen in 2015/16, though the committee expressed concern that the date would be pushed back after the autumn statement 2013 indicated a flat, rather than falling, trajectory.
MPs recently warned that the scale of green investment must be rapidly increased in order to tackle climate change and reduce the risks of a ‘carbon bubble’.
Committee chair Joan Walley MP said, “The UK government and Bank of England must not be complacent about the risks of carbon exposure in the world economy.
“The record-breaking extreme weather events causing chaos across the globe should be a wake-up call. The transition to a low-carbon economy will be much more painful if we wait until there is a climate crisis before recognising that more than half of the world’s fossil fuel reserves will have to remain in the ground.”
Like our Facebook Page
10 Simple Home Improvement Tips To Create A Green Home Environment
Business Initiatives: Ways to Preserve the Environment
Ultra Simple Guide to Consumer Solar Panel Installation
7 Very Important Steps to Become an Eco-Friendly Dog Owner
The Unbelievable Car Insurance Perks of Being an Eco-friendly Car Owner
5 Very Important Sustainable Guidelines for Home Renovations
9 Essential Elements of Success for Eco-Friendly Food Trucks
Comprehensive Analysis of the Environmental and Financial Benefits of Hybrids
7 Ethical Stocks Looking to Make a Significant Recovery after the Pandemic
Radical Waste Management Solutions Are Essential for Environmental Preservation
An Important Look To The Future of Green Construction
Implementing the Best Sustainable Construction Practices with Timber
The Triumphant Turnaround of Tesla Motors
4 Eco-Friendly Ways to Invest in Your Business
The Terrifying Effects of Polyester on the Environment and Our Health
Understanding the Horrifying Hazards of E-Waste 101
The Terrifying Environmental Footprint Of PPE Disposals
Sustainability is Transforming the Diamond Industry
Massive Technological Advances Create a New Era for Sustainable Farming
4 Sustainable Real Estate Renovations to Complete Before Renting Your Home
- Editors Choice10 months ago
10 Green Companies With Amazing Environmental Initiatives
- Environment11 months ago
How You Can Celebrate An Environmentally Friendly Christmas Or Holiday
- Features10 months ago
5 Sustainable Home Improvement Ideas To Improve Your Home’s Value
- Environment11 months ago
Simple Hacks to Slash Your Environmental Footprint for the Holidays