The UK’s Green Investment Bank (GIB) has just about finalized its first non-UK green investment. UK Climate Investments, the GIB’s JV with the Department for Energy and Climate Change (DECC), was given the go-ahead by the UK government to invest outside the country. It plans to invest up to £200 million from DECC’s £3.8 billion International Climate Fund into renewable energy and energy efficiency projects in developing regions like India and Africa.
UK Climate Investments will adopt the same approach as GIB uses in relation to its UK investments. This involves a combination of investment on commercial terms, and encouraging additional private sector capital.
The pilot program is targeting investments in South Africa, Kenya, Rwanda, Tanzania and India. These areas have been selected due to high demand for new generation capacity, and the potential for renewables as a “competitive alternative” to fossil fuels, according to the announcement.
GIB chief executive Shaun Kingsbury said that the business model was one that “works”, and that “adopting it in emerging economies could pave the way for more, much-needed investment in reliable green infrastructure projects.”