Green Investment Bank and the Green Deal Flashcards
What happened to the Green Investment Bank in 2014?
Sajid Javid wanted to sell £1.4bn stake in GIB to pay off debt.
What was the aim to sell the GIB
It aimed to raise more than £4bn for the Treasury coffers. The move is part of the government’s plan to sell off assets to pay down the deficit.
Why was part of the GIB sold?
Because it was denied the ability to raise further capital in private markets.
What does the selling of GIB imply?
The sale raised the question the government’s commitment to a low-carbon economy.
What was Javid’s argument of privatisation in the environment sector?
He said that privatisation would mean “more money going into green innovations” and more support for “environmental entrepreneurs”.
Positive fact of the GIB
• The number of projects they have invested so far
GIB has invested in 63 projects, committing £2.2bn into projects with a total value of £10bn.
GIB invests £460m in offshore windfarms.
Advantage of GIB in reducing government borrowing?
The Edinburgh-based Green Investment Bank is being sold to raise capital for the Treasury, reduce government borrowing, and to let it expand by borrowing in private financial markets.
What does the Lib Dem think about the sale of the GIB?
Tim Farron said the government should retain a majority stake in the investment bank.
What did the GIB hope to achieve?
• Private capital
To mobilise £10bn of additional private capital into the sector
What did the GIB hope to achieve?
• Mixture of public and private money
A mission to bring public and private sector money into environmental projects
What did the GIB hope to achieve?
• offshore wind investment
It has launched funds that will pool private and public money to invest in offshore wind and overseas green schemes.
Example of achievement in the GIB
The bank’s investments have included £236m to build and run the Rampion windfarm off the coast of Brighton, £2.5m to replace boilers in sheltered housing and a £6.3m loan to install low-energy bulbs in Glasgow’s street lights.
Achievement of the GIB in Scotland
A £2m deal to extract heat from wastewater to provide energy for buildings in Scotland.
Achievement of the GIB
• Private capital investment
It has attracted £6bn of private capital to fund projects worth as little as £2m and as much as £1bn
Osborne’s quote on green
George Osborne said ‘the treasury will become a green ally, not a foe.’
