The joint venture between UK Green Investment Bank plc (GIB) and the UK Government’s Department for Energy and Climate Change (DECC) has been officially launched as part of the Indian Prime Minister’s visit to the UK.
UK Climate Investments will invest up to £200 million (US$304.1 million) from DECC’s £3.8bn International Climate Fund in renewable energy and energy efficiency projects in developing countries.
India, South Africa and parts of East Africa (Kenya, Rwanda and Tanzania), where demand is high for new generation capacity and renewables present a competitive alternative to fossil fuels, all have the right conditions to attract low carbon investment.
UK Climate Investments has been mandated to invest in projects on commercial terms, making market-leading, transformational investments that will ‘crowd in’ private investors.
A dedicated and experienced team of investment professionals has been assembled to manage the programme, led by Managing Director Stephen West. The team has already lined up a pipeline of pending projects, the first of which is expected to involve the construction of a number of solar PV farms in India’s southern states.
Amber Rudd, Secretary of State for Energy and Climate Change, said:
The vast majority of investment needed to tackle climate change and make the transition to low carbon energy will need to come from the private sector. The funding we’re committing will help to demonstrate profitability and transform the renewable and energy efficiency industry in India, South and East Africa.
Shaun Kingsbury, Chief Executive, Green Investment Bank, said:
We believe that our business model works, and that adopting it in emerging economies could pave the way for more, much-needed investment in reliable green infrastructure projects in these developing nations.
Stephen West, Managing Director, UK Climate Investments, said:
This is an integrated approach to tackling climate change and reducing poverty. Investment in our target territories will expedite the transition to a low-carbon global economy while supporting clean power generation and economic growth in the regions that need it most.