Advertisement

Britain to privatise Green Investment Bank

(Reuters) - Britain announced plans on Thursday to begin selling stakes in its state-backed Green Investment Bank to bring it into private ownership and to help it to grow. The bank was created in 2012 by the government to back green energy projects in Britain and to spur private sector investment in the low-carbon energy sector. The move also comes a week after the government said it would scrap all new subsidies for onshore wind farms a year earlier than previously planned. Business Secretary Sajid Javid said the move would give the bank greater freedom to borrow and remove limitations from European Union regulations on state aid and allow the bank to attract more capital. "We want the Green Investment Bank to attract more investment," Chancellor George Osborne said. In three years the bank has committed two billion pounds and helped fund 50 green infrastructure projects, including waste management and offshore wind farms. The government and the bank will now actively engage with potential investors. Stake sales will need to meet certain criteria such as delivering value for money for taxpayers, the government said in a statement. (Reporting by Oleg Vukmanovic. Editing by Jane Merriman)