We are the world's first green investment bank. We were created by the UK Government and capitalised with public funds. We use this finance to back green projects on commercial terms and mobilise other private sector capital into the UK’s green economy.
The UK Green Investment Bank's investments help fund the creation of new green infrastructure.
We are a key part of the UK’s efforts to achieve its legally binding environmental targets. These targets require an investment of £330bn in the UK’s green economy by 2020. To date we are seeing investment in the UK’s green economy at less than half the required rate. Our business model is not designed to plug the gap through our direct investments alone. We must invest in a way which demonstrates the attractiveness of the opportunity to others. To do that we must show that it is possible to invest in projects which are green and profitable – this is our double bottom line.
Our business model is as follows:
- we are an investor in UK based green infrastructure projects;
- we primarily invest in energy efficiency, waste and bioenergy, offshore wind, and onshore renewables;
- each investment must offer returns against our green and financial double bottom line - it must make a positive contribution to our five green purposes and it must provide commercial returns in line with the project's risk;
- we invest on terms equivalent to others in the market - we do not offer low-cost finance or grants;
- we work to mobilise other private sector capital, crowding in additional finance rather than displacing other investors; and we are committed to being innovative by building and strengthening the UK market, not simply serving it.