UK Infrastructure Bank publishes £22bn climate change plan – iStock
The UK Infrastructure Bank has launched a £22billion plan to tackle climate change and boost regional growth.
Launching its first Strategic Plan, the Bank’s CEO John Flint said "improving energy security and supply is a top priority which will help deliver the UK’s Net Zero commitments and tackle regional economic inequality".
The Bank also set out its ambition to invest in other key sectors for the UK’s economic future, financing the scaling up of existing infrastructure and accelerating the deployment of new technologies across:
- Transport;
- Digital;
- Water; and
- Waste.
Flint said: "We want our investments to shape the future and, for the first time, we’re highlighting where we expect the biggest investment opportunities will be to deliver on our mission to tackle climate change and regional inequalities.
"The war in Ukraine is an economic earthquake that underlines our mission and the strategic importance of energy security to the UK’s economic future. Rising energy bills also show how in the long-term we need to increase our domestic supply of energy.
"We cannot achieve this alone. Across the breadth of our mission we want to work with partners in the public and private sector to identify where our investment can make the most impact."
Independent from the government
The publication of the plan is the first occasion that the Bank has set out, independent from the government, where it plans to focus investments in its urgent mission to tackle climate change and boost regional and local economic growth across the UK.
The Bank has £22 billion of financing capacity to deploy:
- £8 billion in debt and equity;
- £10 billion in guarantees; and
- £4 billion for Local Authority lending.
Partnering with the private sector and local government, it aims to fully commit its £22 billion balance sheet over the next five to eight years. To do so, it is identifying a pipeline of investable infrastructure projects for corporate and project finance and aiming to invest across the capital structure.
Identifying investment opportunities
The Bank identifies a number of investment opportunities where it could lead the market in tackling specific infrastructure challenges such as the roll-out of electric vehicle charging, retrofit of buildings and the roll-out of zero emission buses by Local Authorities.
The Bank will finance the scaling up of existing green infrastructure and accelerate the deployment of new technologies such as Carbon Capture, Usage and Storage and hydrogen.
The Strategic Plan highlights the importance of nature-based solutions and recognises that the green infrastructure market is still developing. The Bank will actively monitor the opportunities for investment in nature-based solutions and the role that its investments might play over time.
Partnering with Local Authorities
The Bank will also partner with Local Authorities across the UK by providing £4 billion of lending at preferential rates and supporting them to deliver "ambitious and innovative infrastructure projects" through its local authority advisory function.
The Bank’s advisory function will launch this summer, with targeted pilot projects developed over the next six months to test how it can best add value.
Simon McWhirter, the director of communications, policy and places at green lobby group, UK Green Building Group, said: “UKGBC warmly welcomes UKIB’s Strategic Plan and the recognition that reducing emissions from buildings is critical to achieving net zero and improving our national energy and climate resilience. This is in line with our feedback to the UKIB on its Strategic Plan Discussion Document.
“The focus on energy efficiency, retrofit and the essential role of local authorities are particularly welcome at this time and UKGBC will continue engaging with the Bank on our shared mission to decarbonise our buildings.”
The UK Infrastructure Bank opened for business in June 2021 to help tackle climate change and boost growth across the UK. The Bank has announced seven deals worth £610 million, mobilising over £4.2 billion of private capital, with a range of investments in line with its mandate, strategic objectives, and investment principles.
Image credit | iStock
