The Department for Energy and Climate Change (DECC) has approved £200m in funding for an international investment programme from the Green Investment Bank (GIB), the bank’s first outside the UK.
The fund will initially target East Africa, South Africa and India, and will focus on investments in renewable energy and energy efficiency.
A new board composed of members from DECC and the GIB will be created to oversee the investments.
The GIB was launched in November 2012 with £3.8bn of Government funding to support investments in renewables, energy efficiency, and waste and recycling projects.
Shaun Kingsbury, GIB chief executive, said: “I am confident that our unique business model, tried and tested in the UK, will have a positive effect in developing countries, helping them to build vital new green energy infrastructure.”
It was recently announced that the GIB has approved £28.25m funding for a 12.5MWe energy-from-waste (EfW) plant in Lanark, Scotland. This is the 13th waste facility that has received backing from the GIB since its inception.
The bank has attracted criticism from the chairman of Eunomia for failing to diversify its investments across the waste sector and focusing too heavily on EfW and anerobic digestion plants.