£3bn available when Green Investment Bank launches

Deputy Prime Minister Nick Clegg gave more detail on the coalition's plan for a green investment bank, saying it would be up and running by April 2012.

The bank is intended to bridge the gap between venture capital and the green economy, provide the finance for low carbon infrastructure and lay the foundation for long-term, balanced growth.

The DPM said that the Government will bring forward legislation to ensure both the operational independence and enduring nature of the Bank and has guaranteed £3 billion for the initial capitalisation of the Bank.

Mr Clegg said early possible priorities for the Bank are offshore wind, waste, and non-domestic energy efficiency. Government is also looking at the potential for using the Bank to help deliver the first stages of the Green Deal.

Commenting on the announcement, Steve Radley, director of policy at EEF, the manufacturers' organisation said: “While Industry has more detail on the operation of the Bank, the big question of what will be its funding priorities is yet to be answered. Manufacturing can play a major role in the low carbon economy and in efforts to reduce carbon emissions by improving energy efficiency and developing new low carbon products.

“With a modest amount of funding to start with, the GIB should focus on developing innovative low carbon manufacturing as well as energy infrastructure and decarbonising existing manufacturing. There is an opportunity for the Bank to provide a carrot for such investment in innovation to balance the sticks from other green taxes and regulations.”