Green Investment Bank sale completes but protests continue

The sale has been contentious due to doubts being cast over the environmental credentials of buyer Macquarie Group.

Despite concerns, the Australian investment firm has acquired the GIB for £2.3 billion.

The bank, which employs a further 85 people at its London office overseeing the funding of renewable and low-carbon projects, will now operate under the name Green Investment Group.

The government said the Edinburgh office will be home to a new revenue-generating business.

It will also provide services to the green energy portfolios of both Macquarie and the Green Investment Group in the UK.

The government said the deal ensures that all taxpayer funding invested in the bank has been returned, with a gain of around £186m.

Climate Change and Industry Minister Claire Perry said: “We led the world in setting up the Green Investment Bank and it is now being copied by others.

“Now that it’s in the private sector, it will be able to operate on an international level to tackle the global challenge of climate change.

“It is also perfectly placed to help us finance green initiatives for our Clean Growth Plan and realise the commitments set out in the Paris Agreement.”

However, Vince Cable, who launched the GIB when UK business secretary in 2012, said the sale was “environmentally irresponsible”.

The now Liberal Democrat leader said: “The bank has done an extremely good job in supporting renewable energy, energy efficiency and low-carbon projects.”

“It has managed to attract over £10bn of private investment in these sectors that would not otherwise have happened.

“At a time when business confidence is falling and the Conservatives are giving mixed signals on their commitment to the environment, this is the worst time to undermine investment in the green economy.

“The Green Investment Bank’s environmental mission is in danger of disappearing under the ownership of a private Australian bank whose track record does not inspire confidence.”

The Scottish Greens also questioned the green credentials of the Green Investment Bank after it was sold to a company which it said has invested billions of pounds in fossil fuel projects.

Macquarie has a history of investing in fracking and opencast coal mining projects said Green MSP Mark Ruskell, who explained that it is therefore unlikely that the company would make any significant investment that would make fossil fuels “redundant”.

Mr Ruskell MSP said: “The idea that the former bank will remain a truly green organisation is laughable. Why would the new owners allow for genuine green investments to be made if they are going to impact on the profitability of the company’s previous financial decisions? I don’t expect the public to fully trust that this new Green Investment Group will make the right investments in renewables project that could eventually make fossil fuel methods redundant.”