The UK Green Investment Bank will invest £200m (US$298 million) on renewable energy and energy efficiency project in East Africa, South Africa and India.
The bank will make investment in pilot projects that match the business model the bank has developed for the UK. It will invest in green projects on commercial terms and mobilising additional private sector capital.
The GIB will also recruit a dedicated team to manage the program. It will now begin the process of finalising the programme details and identifying investment opportunities.
The investment is part of the UK government’s plans to support projects in developing countries that will mitigate climate change or enable communities to adapt to its effects. “Unmitigated climate change will hit the poorest first and hardest,” said Secretary of State for Energy and Climate Change Edward Davey.
“It is vital that we use public climate finance to catalyse private investment into developing countries. By working with the Green Investment Bank, Department of Climate Change will be able to draw on its unique mix of investment expertise, commercial discipline and close alignment of green policy objectives to maximise the impact and effectiveness of UK climate finance.”