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In order to help reduce carbon emissions by 2020, the UK government recently opened the Green Investment Bank (GIB) in Edinburgh, making it the first bank in the world focused entirely on lending to clean energy developments. Capitalized with over 3 billion pounds, the GIB financed eleven projects over its first five months, the majority of which had to do with generating energy from waste. The bank reported that it was able to utilize 1.7 billion pounds of third-party lending, helping to spark a new, sustainable private sector.

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One of GIB’s largest loans was for 100 million pounds to the power producer, Drax, which also garnered an additional 890 million pounds from outside sources. Their initiative would help the company switch from burning coal to biomass. The largest agreement, known as the “Green Deal,” was a 125-million-pound loan to finance the government’s plan to improve home insulation. The program employs 74 people, and the program’s staff is expected to increase to 100 by the end of the year.

The amount of taxpayer money that the GIB will receive in the coming years will be determined at the next government spending review. Meanwhile, the UK is putting its money to good use by taking advantage of the open market to fuel green industry.

+ Green Investment Bank

Via Reuters