The Environmental Audit Committee is launching an inquiry into Government's decision to part-privatise the Green Investment Bank.
The Green Investment Bank (GIB) launched in November 2012 as a fully government-owned institution with the aim of unlocking private investment in low-carbon and green sectors. In June 2015, the Secretary of State for Business, Innovation and Skills announced that GIB would be moved into private ownership, arguing that this would allow it to operate in a wider range of green sectors and to finance more projects.
The GIB itself argues that capital from the UK Government will not be sufficient to sustain its level of investment in the future, and so welcomes the move. Some green groups and think tanks have been critical of the plan, warning that it will undermine the GIB's ability to meet its goals and that it will damage confidence in low-carbon sector investment more generally.
The Committee will seek to hear oral evidence from GIB, stakeholder organisations, and the Government. Alongside this, the Committee invites written submissions by 19 November 2015 [updated] on the following:
- Whether the proposed privatisation of the Green Investment Bank (GIB) will achieve the benefits claimed by the Government.
- Whether the proposed privatisation of the GIB is consistent with its role in unlocking private investment and supporting projects that would not otherwise be funded.
- Whether the performance of the GIB is put at risk by the proposed privatisation.
- Whether this policy forms a coherent part of the Government's broader strategy on renewables and the green sector.
- Whether the part-privatisation of GIB presents any other risks or opportunities.