The state-backed lender is tapping into the £80 billion Funding for Lending scheme to offer reduced-rate loans for UK firms looking to install energy-efficient heating and lighting, or to generate their own power from wind turbines.
Today’s launch of the bank’s carbon reduction fund comes just weeks after the Green Investment Bank (GIB) officially opened for business in Edinburgh. The GIB can lend £3bn of taxpayers’ money over the next three years. Its first investments included £8m for a plant in north-east England that will generate power from waste, and £5m to reduce energy consumption at manufacturing firm Kingspan.
Investment in Scotland’s renewable sector is on track to top £1bn this year according to trade body Scottish Renewables, while the Civil Engineering Contractors Association found the sector accounted for £1 in every £8 spent on infrastructure north of the Border in the past year.