The UK's Green Investment Bank (GIB) is to target east Africa, South Africa and India under a new international pilot investment scheme.
The new scheme will see the bank invest outside the UK for the first time, focusing initially on renewable energy and energy efficiency projects with £200 million of capital. It says it will follow the business model it has developed for the UK, investing in green projects on commercial terms and mobilising additional private sector capital.
GIB CEO Shaun Kingsbury said that the bank's plans would "have a very positive effect in developing countries, helping them to build vital new green energy infrastructure". They will support the UK's existing international climate fund (ICF), which provides direct and indirect funding to sustainable development projects overseas.
The bank is planning to recruit a dedicated team to manage the pilot, which will be overseen by its board as well as the UK's Department of Energy and Climate Change (DECC). "The pilot aims to demonstrate the commercial viability of low carbon investment and crowding-in of private investment in addition to delivering significant emissions reductions," said Energy and Climate Change Minister Edward Davey.
GIB was launched in 2012 and has already invested in 42 projects and committed £1.8 billion of capital.
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