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Will Green Investment Bank Sell-Off Continue Its Social Purpose?

Concern has been registered by the renewable energy industry and green policy supporters alike over the issue of will the Green Investment Bank sell-off by the UK government, continue its Social Purpose? The purpose of the GIB when created by the Conservative – Liberal Coalition Government was to provide finance to the renewable energy sector projects which other institutions were (and still are) difficult to fund due to perceived high business viability risks.

Meme shows GIB Social Purpose.

Green Investment Bank Social Purpose

Many would say that privatisation may be no bad thing, as long as the GIB does continue its Social Purpose. However, the Liberals and green groups see it as nothing more than a cynical move by the Conservative government to make a profit on the sale, and cut-and-run in a way that is environmentally irresponsible.

We have provided news about this from a number of sources to provide our readers with the widest possible perspective on this important renewable energy industry subject. The first is the article in the CIWM Journal Online, reproduced in part below:

Watch the following video to view the content of this article, rather than reading it.

GIB (UK’s Green Investment Bank) Must Maintain Its “Social Purpose”, Says Renewables Sector via CIWM Journal Online

The Green Investment Bank (GIB) must maintain its social purpose the Renewable Energy Association, says, following the closure of the sale to Macquarie Group.

The renewables industry urges the new Bank owners to maintain its “social purpose”, namely to help mainstream new technologies that will decarbonise the energy sector and build new industries.

James Court, Head of Policy for the Renewable Energy Association said: “As we have seen with wind and solar, renewables are now cost competitive following government support and industrial innovation.

“The new owners should continue the Bank’s aim of providing finance to early-stage innovative technologies”

“Prices have come down massively after being deployed at scale and we still believe there are more technologies that have a huge future if backed. The new owners should continue the Bank’s aim of providing finance to early-stage innovative technologies.

“Deep geothermal is a good example of new technologies that the bank can support. Britain has plentiful geothermal resources and the potential to develop an industry, particularly in Cornwall, but a lack of historic projects means that the existing investor community hesitates to provide funding.

“We expect that the on-going Government CfD auction for “less developed” renewable energy technologies, which closes today, will highlight the amazing diversity and cost reductions of new systems that are coming onto the market. Support such as that the Bank can provide is vital if emerging technologies are to deliver on their potential for jobs and lower energy costs.

Ambitious New Owner
The £2.3 billion deal ensures that all the taxpayer funding invested in GIB since its creation, including set-up costs, has been returned with a gain of approximately £186 million, the Government says.

As well as fully meeting the government’s objectives, the deal secures the future of the GIB with an “ambitious new owner” committed to growing the business. The Edinburgh office will be home to a new revenue-generating business as well as providing services to the green energy portfolios of both Macquarie and GIB in the UK. via ciwm-journal.co.uk

What Others Are Saying About The Green Investment Bank Sell-off

Macquarie says its £2.3bn takeover of the Green Investment Bank will support globalisation of the renewable energy industry as the Australian financial group prepares to expand its newly acquired UK fund into the rest of Europe. The UK government agreed … via Macquarie completes £2.3bn Green Investment Bank deal

The sale of the Green Investment Bank (GIB) by the UK government has been completed. The institution, which is based in Edinburgh, has been sold to Macquarie Group for £2.3bn and will now operate under the name Green Investment Group. The government said … via UK government completes sale of Green Investment Bank

The sale of the government-backed Green Investment Bank (GIB) for £2.3bn to a consortium led by Macquarie Group Limited has been completed this week. Concerns stem from whether the mission of GIB will be safeguarded after its privatisation. The GIB has … via GIB going, going, gone! The future of the Green Investment Bank and sustainable investment in the UK

The controversial Green Investment Bank privatisation has this morning completed, the third big deal to get the go-ahead in a matter of hours. Australian investment bank Macquarie said in a statement that its consortium has now tied up the £2.3bn deal. via Acquisitions August? Controversial Green Investment Bank sale done, Heineken punches the air and Reckitt Benckiser sells sauce

Former business secretary Sir Vince Cable has hit out at the Government’s sale of the Green Investment Bank (GIB), branding the move as “environmentally irresponsible”. Sir Vince, leader of the Liberal Democrats, said the £2.3 billion sale to a consortium … via Vince Cable slams ‘environmentally irresponsible’ sale of Green Investment Bank

Australian investment bank Macquarie has completed its purchase of the formerly government-owned Green Investment Bank for £2.3bn. Bosses pledged the fund will remain a leading investor in green infrastructure in the UK and Europe. British biotech firm … via DAILY BRIEFING: Australia’s Macquarie completes purchase of Green Investment Bank

The Scottish Greens have questioned the green credentials of the Green Investment Bank after it was sold to a company that has invested billions of pounds in fossil fuel projects. Australian bank Macquarie has a history of investing in fracking and … via Greens comment on sale of Green Investment Bank

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