UKSIF has welcomed the government’s announcement today that it has decided on the location of the Green Investment Bank.

Business Secretary Vince Cable has announced that the Green Investment Bank will be headquartered in Edinburgh with the main transaction team based in London.

Read the full press release.

Penny Shepherd MBE, Chief Executive of UKSIF, the sustainable investment and finance association, has commented on her appointment to the UK government’s Advisory Group for the Green Investment Bank.

The Advisory Group members were announced today by Business Secretary Vince Cable.

Penny Shepherd MBE, UKSIF Chief Executive, said:

“The Green Investment Bank is an outstanding example of government leadership in building a resilient low carbon economy for the UK. I look forward to using my understanding of the needs of long-term responsible investors to support the Bank’s development.”

Read the full press release.

Read the BIS press release.

UKSIF has welcomed the Government’s announcements this week that the Green Investment Bank (GIB) will be set up by legislation and have independent borrowing powers. Last week, UKSIF wrote to the Prime Minister calling for these measures to enable the Bank to demonstrate credible governance and sufficient political independence.

Read UKSIF’s letter to the Prime Minister.

Read UKSIF’s press release calling for a credible Green Investment Bank.

UKSIF has welcomed the government statement that the Green Investment Bank will have borrowing powers and increased capitalisation; but it is concerned that borrowing will not be allowed until 2015 at the earliest with the exact timing uncertain as it will be linked to reduction of the UK deficit.

Penny Shepherd MBE, UKSIF chief executive said: “While there is much to welcome in the announcement, it represents a lost opportunity to make the step change needed to green the UK economy and support UK leadership in green financial services. In particular, the delay and uncertainty about when the Bank can start borrowing does not send the right signals to pension funds and investment managers”.

Read the full press release.

In advance of Wednesday’s budget, the UK Sustainable Investment and Finance Association (UKSIF) has called for a clear government commitment in the budget that the planned UK Green Investment Bank will have the power to issue bonds as soon as it is fully operational and will aim to ramp up to large scale bond issuance within the next three years.

Commenting on press rumours that the decision on whether the bank can borrow may be delayed, Penny Shepherd MBE, UKSIF chief executive, said:

“Today, the UK is widely recognised as a global leader in green financial services. There is a real risk that our international competitiveness in this growing market will be seriously damaged if we are not seen to recognise the urgency of financing our own low carbon transition. The Green Investment Bank must have a clear and rapid timetable for large-scale bond issuance both to support the UK’s continued leadership in this important sector of financial services and to enable the broader UK economy to benefit from green growth.”

Read the full press release.

Chief Executives and other senior figures from major UK investment institutions, representing over £500 bn(1) in assets under management, have written together to the Prime Minister welcoming the creation of a UK Green Investment Bank.

The seven senior executives highlight the significant investment needed in low carbon infrastructure in the UK and express interest in considering future investments in the Bank’s securities. They say that a Green Investment Bank “could play an important role to enable and accelerate this major low carbon investment”.

The initiative was convened by UKSIF, the sustainable investment and finance association.

(1) At 30 June 2010 or later

Read the full press release.

Read the UKSIF Green Investment Bank Investor Letter.

Commenting on government funding for a Green Investment Bank in today’s Comprehensive Spending Review, Penny Shepherd MBE, chief executive of UKSIF, said:

 “The government’s commitment to provide significant additional capital from asset sales could be the most important part of today’s Green Investment Bank announcement. While welcome, the initial £1bn of funding is clearly not sufficient alone.

“However, given the urgency of developing a green investment market at scale, it is alarming that the initial funding will not be available until 2013. This may delay the credit rating and track record that the GIB will need to raise major tranches of additional capital through bonds issued to institutional investors.”

Read the full press release.

Commenting on today’s report from the Green Investment Bank Commission, Penny Shepherd MBE, chief executive of UKSIF, said:

“A Green Investment Bank should do much to leverage private sector investment from international and UK pension funds and from private individuals.

The public’s participation in and support of a Green Investment Bank is in many ways as important as any funding they might bring. If, as proposed, increasing the ISA allowance by £5,000 (above the current £10,200 limit) costs the Treasury £70m, then this looks like an effective and low cost way to engage with the public, boost the bank’s visibility, and help fund the new low carbon infrastructure we need for future economic success.

Our research shows that nearly half of people in the UK want the opportunity to make money and make a positive difference to the world around them when investing their money. This suggests that Green ISAs should be a popular choice.

We hope that the Government will now act quickly and decisively to implement the report’s proposals.”

Click here to read the full press release.

Commenting on today’s Conservative Liberal Democrat Agreement which includes proposals to create a green investment bank, Penny Shepherd MBE, chief executive of UKSIF, said:

“UKSIF welcomes the coalition’s commitment to establish a green investment bank in the UK. A green bank would play an important role in finding investment for the large scale infrastructure projects that our country needs and will do much to encourage private sector investment to these. The proposal’s inclusion, and indeed similar plans for a green bank from the Labour party, illustrates that this is now an urgent issue that cuts across party politics.

“Although these are early days for the new coalition Government, we also hope that Green ISAs will form part of the agenda, encouraging people to invest both to make money and make a difference.”

Click here to read the full press release.

Commenting on today’s Budget proposals to create a Green Investment Bank, Penny Shepherd MBE, chief executive of UKSIF, said:

“A Green Investment Bank should do much to leverage private sector investment from pension funds and private individuals. It is a very positive move. However, it should ensure that it invests alongside the private sector rather than in competition with it.

“The urgency of the issue means that we’re now seeing this transcend party politics. The Chancellor’s announcement today and the Conservatives’ unveiling of their energy policy last week both have serious proposals to find investment for the large scale infrastructure projects that need it.  The details of each proposal are different, but the aims are certainly aligned. We welcome this.”

Click here to read the full press release.