GIB Investments To Prevent 1.3m Tonnes Of Waste Going To Landfill

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The UK Green Investment Bank’s (GIB) existing portfolio of investment, once built, will see the prevention of 1.3m tonnes of waste from ending up in landfill.

The GIB has announced 2013-14 results and unveiled plans for a £1bn fund to encourage new private investors to invest in offshore wind farms in the UK.

GIB committed £668m to 18 new green projects in 2013-14, taking its total capital commitments to £1.3bn of profitable investments.

GIB is now the most active investor in the UK’s green economy.

Once built, GIB’s existing portfolio of investments will: avoid 1.3m tonnes of waste going to landfill, equivalent to the annual domestic waste produced by 1.3m homes; reduce the UK’s annual CO2e emissions by 3.5m tonnes each year, equivalent to taking 1.6m cars off the road; produce 12.8 TWh of renewable energy, enough to power 3m homes.

GIB’s current portfolio, once built, is projected to earn taxpayers an average return of eight percent per annum, with every investment on track to make a profit.

Vince Cable – “We established the UK Green Investment Bank (GIB) to jump start investments in cleaner, greener technology. These results show the impact they are having with £4.8bn pumped into green energy projects in just 18 months”

With only 18 months of activity so far, the majority of GIB’s investments (88 percent by value) remain in construction and, in line with standard accounting practice, a significant proportion of income is deferred to future years.

As a consequence and in line with expectations, GIB recorded an operating loss of £5.7m in the current year. GIB is on track to reach sustained profitability once its current portfolio is built and operating.

Shaun Kingsbury, chief executive, said: “Our role goes well beyond that of a traditional investor. We are providing a positive demonstration effect by successfully committing capital to profitable, green infrastructure investments. We are making a difference across the UK by taking on the tough projects, de-risking new technologies and lowering the cost of capital for our sectors.

“We want to do more to maximise our green impact. We plan to extend our reach into new markets like community-scale renewables. And we plan to raise new capital for the first time through the creation of a new £1bn fund for operating offshore wind assets.”

Business Secretary Vince Cable said: “We established the UK Green Investment Bank (GIB) to jump start investments in cleaner, greener technology. These results show the impact they are having with £4.8bn pumped into green energy projects in just 18 months.

Headquartered in Edinburgh, the bank’s current investments have supported 3,500 jobs in the UK’s growing green economy and will cut CO2 emissions equivalent to taking over half the cars off London’s roads.”

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