The Government-backed Green Investment Bank (GIB) has begun full operations, business secretary Vince Cable has announced.
The bank, set up by ministers to accelerate private sector investment in the green economy, began operating on Monday. The scheme was given the go-ahead by the European Commission recently after finding the use of £3bn of Government funds would not breech EU rules on state aid and competition.
In a written statement Cable said the Government would begin funding GIB following Parliamentary approval of powers under the Enterprise and Regulatory Reform Bill.
The waste and recycling sectors have been named as priority areas for GIB funding.
The bank’s operations have been carried out by a predecessor team at UK Green Investments (UKGI) based at the Department for Business Innovation and Skills. Ministers previously announced £100m of funding through UKGI for smaller waste projects. UKGI made its first investment in the waste sector last month with £2m for a TEG Group anaerobic digestion project in London.
Shaun Kingsbury, investment partner at private equity firm Hudson Clean Energy Partners, was announced as the GIB’s chief executive in September.
The bank is due to gain full borrowing powers around 2015.