UK Investment Bank Case

UK Green Investment Bank

Public-Private Investment Partnerships

New models in renewable energy finance


The UK Green Investment Bank (UKGIB) became operational in October 2012, supported by £3 billion (approximately $5 billion) of government money. As part of a multifaceted climate change strategy enacted by the United Kingdom, the bank was founded with a mission of “accelerating the UK’s transition to a more green economy, and creating an enduring institution, operating independently of government”. With an experienced, professional management team in place, the UKGIB's immediate task was to ‘crowd in’ private sector funding on new large-scale clean energy infrastructure. But while the strategic mandate for the bank was clear, a series of tactical issues remained about how to select new investments and manage its growing investment portfolio. For instance, how would the team be able to manage conflicting public and private interests? What specific type of investments would best counter market scepticism about the renewable energy projects? Most importantly, what investment evaluation framework would enable them to deliver on their vision of being both ‘green and profitable’?