UK's GIB to invest GBP 200m in developing countries

The UK Green Investment Bank Plc (GIB) will pour GBP 200 million (USD 297m/EUR 272m) in renewable energy and energy efficiency projects in developing countries under a new programme, unveiled Tuesday.

The international green investment pilot programme has been agreed with the Department for Energy and Climate Change (DECC) and is designed to assist in investment of the UK's GBP-3.87-billion International Climate Fund (ICF). It represents GIB's first venture abroad.

The bank will focus initially on investments in East Africa, South Africa and India. It will use the same model it uses in the UK, namely investing in projects on commercial terms and drawing in additional capital from the private sector.

The government will provide GBP 200 million of climate finance for the pilot over three years. The funds are in addition to the GBP 3.8 billion allocated to GIB for UK investments. In a written statement to the House of Commons, Energy and Climate Change Secretary Edward Davey said that GIB had been very successful in mobilising green private sector investment in the UK. Since its launch in 2012, it has committed GBP 1.8 billion for 42 projects, which would create GBP 6.6 billion of new infrastructure investment, he added.

GIB said it would now move to finalising the programme details and identifying investment opportunities.

(GBP 1.0 = USD 1.485/EUR 1.360)

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