The commencement of commercial operations by the bank has been contingent on state aid approval from the European Commission. On
offshore wind; waste; non domestic energy efficiency; biofuels for transport; biomass power; carbon capture and storage; marine energy; and renewable heat.
The Department for Energy and Climate Change is seeking state aid approval for the financing of the green deal separately. The UK green investment bank would be able to invest in the green deal in accordance with the terms of that approval.
My Department has, in parallel with the state aid application process, been taking the necessary steps to ensure that the company would be ready to begin operations soon after receipt of state aid approval. I have, in particular, given my approval as shareholder to the appointment of Shaun Kingsbury as the company’s chief executive officer, with effect from
In April this year UK Green Investments (UKGI)—a team of finance professionals in my Department—began making investments in green infrastructure on commercial terms, committing £180 million to specialist fund managers to co-invest equity in smaller waste infrastructure, energy from waste, and non-domestic energy efficiency projects. Assets built up by UKGI will transfer to the bank.
The Government will provide funding to the bank under section 228 of the Banking Act 2009, pending parliamentary approval of a bespoke power to fund the bank under clause 4 of the Enterprise and Regulatory Reform Bill.