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UK auditor questions GIB impact

Delayed sale to Maquarie 'limited' green bank invesment strategy

UK auditor questions GIB impact image

The UK government lacked clear criteria or evidence to show that the Green Investment Bank (GIB) achieved its intended green impact, according to a new report by the National Audit Office (NAO).

The report said that, other than for offshore wind, the Bank’s impact in stimulating investment in the green economy had been “less certain”.

NAO head Amyas Morse said: “Ultimately the value for money of the Green Investment Bank intervention will only be seen over time.

“A key test will be whether the government needs to intervene again in this way to stimulate growth in the green economy and to help it achieve its climate change commitments”

NAO said the GIB had quickly stimulated investment in offshore wind, where it addressed “market failures” and the returns on the portfolio are “forecast to exceed expectations”.

However, it noted that the sale of the bank took 18 months, over two times longer than expected.

The delay affected the operations of the GIB, including the departure of key staff that “limited its ability to invest”.

The GIB was eventually bought by a Macquarie Group-led consortium for £1.6bn in August this year and has been renamed the Green Investment Group.

Image: BEIS (Steph Gray)

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