Scotland’s burgeoning renewable energy sector has been given a major boost with the news that the new Green Investment Bank will have its headquarters in Edinburgh.
Eighteen cities were competing to become home to the bank, which will be given £3 billion of public money to help support and finance early stage renewable energy schemes.
It will be able to borrow money from the private sector and capital markets by 2015, allowing it to provide financing for even more renewable energy projects.
Although the bank’s headquarters will be based in Edinburgh, its main transaction centre will be in London. The bank will employ around 70 people between its two sites.
Politicians, business leaders and environmental groups all welcomed the announcement that the bank’s headquarters will be in Scotland.
First Minister Alex Salmond said: ”I am delighted that Edinburgh has been chosen on its merits as the headquarters for the Green Investment Bank.”
Johann Lamont, the leader of the Scottish Labour Party, and Scottish Conservative leader Ruth Davidson also welcomed the announcement.
UK business secretary Vince Cable added: ”Edinburgh has a thriving green sector and respected expertise in areas such as asset management. London, as the world’s leading financial centre, will ensure that the GIB’s transaction team can hit the ground running.”
SCDI chief executive Dr Lesley Sawers said: ”The arrival of the Green Investment Bank is great news for Edinburgh and Scotland’s renewables industry, and the culmination of a long campaign actively supported by SCDI. Access to sufficient and unprecedented levels of capital is the most important factor in the installation and development of renewable technologies and the Green Investment Bank must play a key role as soon as possible.
”The UK Government should consider whether the new bank’s borrowing powers will be needed sooner than currently projected.”
WWF Scotland head of policy Dr Dan Barlow said: ”Basing the Green Investment Bank HQ in Edinburgh will help put Scotland at the centre of UK low carbon investment. With world-leading climate targets and massive renewable resource Scotland is now well placed to show real leadership in the move to a low carbon future.”
Friends of the Earth Scotland’s chief executive Stan Blackley said: ”This is great news. Edinburgh’s was always the natural and logical location for the Green Investment Bank given its unique combination of renewable energy and financial infrastructure and expertise.
”Basing the bank in Edinburgh will further boost Scotland’s vital progress with green technologies and renewable energy. While the location of the bank is important, what is absolutely crucial is that it has real teeth.
”It can’t just be simply be a government fund, but needs to have full borrowing and lending powers from day one.”
Photo by Gareth Fuller/PA Archive