Vince Cable unveils more Green Investment Bank details

Business Secretary Vince Cable has unveiled further details of how the Green Investment Bank, which is being set up by the government to fund clean energy and low carbon projects, will function.

In a Commons statement on 24 May 2011, he said the bank would have an initial capitalisation of £3bn, but ministers estimated that it would be able to attract £15bn of additional private investment by 2015.

"In this way, the bank will mobilise projects significantly in excess of the government's contribution," he explained.

Mr Cable said that he expected the institution would be able to fulfil its remit with between 50 and 100 employees, and that the location of its headquarters had not yet been decided.

He also announced that a green bank advisory group, to be comprised of independent financial experts and chaired by Sir Adrian Montague, will advise ministers on the setting up of the new institution.

"The government will enable the GIB to have borrowing powers from 2015-16 and once debt is falling as a percentage of GDP. This will allow it to significantly scale up its operations at the time when green financing need is greatest," he added.

Shadow business secretary John Denham welcomed the statement, noting that Labour had also included plans for a green investment bank in its manifesto.

But he suggested that "infighting" between ministers had left the government "at odds over green policy".

He asked whether Mr Cable had tried to block the adoption of carbon emissions targets announced earlier this week by Energy and Climate Change Secretary Chris Huhne.

Mr Cable chided the shadow business secretary for his "slightly carping tone".