28/11/2012 04:43 GMT | Updated 28/11/2012 17:20 GMT

Vince Cable Launches Green Investment Bank With £3bn Start-Up Fund

Business secretary Vince Cable hailed a key coalition promise delivered after launching his Green Investment Bank.

The bank, which will be kick-started with £3 billion worth of funding from the government, is designed to encourage investment and spending in developing a "green economy".

Headquartered in Edinburgh, the bank will invest in areas such as renewable energy, carbon capture and storage and energy efficiency measures.

Cable said in a press release on 28 November: "The Green Investment Bank - a key coalition pledge - is now a reality. It will place the green economy at the heart of our recovery and position the UK in the forefront of the drive to develop clean energy.

"Three billion pounds of government money will leverage private sector capital to fund projects in priority sectors from offshore wind to waste and non domestic energy efficiency, helping to deliver our commitment to create jobs and growth right across the UK."

The first project to benefit from the fund will be an anaerobic digestion plant at Teesside, the first of six planned over the next five years.

The investment, made through fund manager Greensphere Capital, is part of a £80 million investment programme by UK GIB in small waste projects.

Having the bank's headquarters in Scotland would be seen as a real boon to Scottish industry, according to the secretary of state for Scotland Michael Moore

“The UK Green Investment Bank is now ready to have a real and positive impact on investment in our green and renewables sectors that will take them into new areas and opportunities. We have the best of both worlds: a headquarters in Edinburgh, at the centre of Scotland’s thriving businesses and asset management, coupled with a team based in London, the world’s leading financial centre," he said.

“The next step is to put that expertise into action and mobilise the additional investment we need to take the UK towards a greener economy. This is the first bank of its kind in the world and this government has delivered it for Scotland and the rest of the UK.”