32 cities in the UK have submitted bids to host the ‘Green Investment Bank’, an initiative to encourage private investment into clean, renewable energy projects. The government claims the GIB is the world’s first financial institution dedicated solely to ‘greening the economy’.  

The bank was set up to aid the transition towards a green economy by accelerating private sector investment in the green economy. It will also protect the “‘double bottom line’ of both achieving significant green impact and making financial returns,” according to the Department for Business, Innovation and Skills, under whose remit the GIB was set up.

Government estimates suggest £200 billion needs to be invested into the energy sector before 2020 to adopt new technologies and achieve a greening of the sector.

Business secretary Vince Cable said of the response to the bidding process, "I am delighted that the Green Investment Bank has fired the imagination of so many public and private sector groups keen to host this world-first institution. They all have a role to play in helping the UK seize the benefits of a transition to a low carbon economy."

Cities which have bid to host the bank include Birmingham, Cardiff, Edinburgh, Leeds, Liverpool, London, Manchester, Newcastle, Norwich, Nottingham and, Sheffield. Following deliberation over the submissions, Mr Cable is expected to announce the host city in March.

Although Edinburgh is thought to be the current front-runner, a proposed referendum on Scottish independence will likely damage its chances of hosting the UK-wide financial institution.  

The next step for the government is to secure energy efficiency. To this end it has announced that £100 million will be available over the next financial year to support commercial and industrial energy efficiency projects.

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