Introduction to the Green Investment Bank Investing in Infrastructure – Exploring the Challenges to Effective Delivery Belfast Speaker: Adrian Judge 13 th February 2013

2 WHY CREATE A GREEN INVESTMENT BANK? The Government has ambitious green targets, with a suite of policies in place to support their achievement Even after these measures, finance-related issues will continue to limit the scale and pace of the transition to a green economy The market challenge has been exacerbated by the impact of the global financial crisis on bank balance sheets, and in particular on the market for long-term project debt The Coalition Agreement of May 2010 committed to setting up a Green Investment Bank

3 OVERVIEW Mission Funding GIB To accelerate investment in the UK’s transition to a green economy and to create an enduring institution, operating at arm’s length from government £3bn to invest over 3 years, starting April 2012 State Aid Approval granted 17th October 2012 GIB now fully operational Investments already announced across all sectors

4 GIB – WHAT WE ARE Enduring Institution Additional Green UK “For profits” organisation, seeking a commercial risk- adjusted rate of return on its investments Does not “crowd out” private sector Mobilising other capital – “crowd in” Priority Sectors: Offshore Wind Non Domestic Energy Efficiency + on site renewables Green Deal Waste (Recycling & Energy) Other: (e.g. biomass, biofuels, renewable heat)

5 GIB – WHAT WE ARE (CONT’D) Responsible Investor Flexible bespoke solutions Policy Consistency Recycle Capital Clients need to meet highest environmental, governance and social standards We can offer debt, mezzanine, equity, guarantees Scope to develop new products Supporting Government’s green policies £3bn capital vs. total priority sector investment funding requirement to 2020 of > £200bn

6 GIB – WHAT WE ARE NOT Provider of grants / regional assistance Provider of subsidised debt / equity Taker of high risk / low reward Provider of Venture Capital Provider Development Equity Financial Advisors

7 INVESTMENTS TO DATE £m Walney Offshore Wind Farm 45 Waste Funds (Foresight, Greensphere) 80 Energy Efficiency Funds (SDCL, Equitix) 100 Wakefield Waste 32 Drax Conversion 100

8 Edinburgh Exchange Place 2 5 Semple Street Edinburgh EH3 8BL 1 London 13 th Floor Millbank SW1P 4QP Shaun KingsburyChief Executive Officer Ian NolanChief Investment Officer Stephen CraneManaging Director Offshore Wind Charles Abel SmithDirector NDEE Adrian JudgeManaging Director Waste & Bioenergy Edward NorthamManaging Director Waste & Bioenergy CONTACT DETAILS

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