UK Markets close in 52 mins

UK's First 'Green' Bank Opening For Business

(c) Sky News 2012

The UK's first ever 'green' bank will be officially declared open for business later.

The Green Investment Bank (GIB) is funded with £3bn of Government money earmarked for helping develop a green economy.

It will be launched by Business Secretary Vince Cable at its headquarters in Edinburgh.

He will say: "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.

"Having the headquarters in Edinburgh is a powerful vote of confidence in the Union, and a testimony to our commitment to helping Scotland lead the green revolution."

First (OTC BB: FSTC.OB - news) to benefit from the fund is a project in the north east of England that will generate energy from waste.

Around £8m will go to the construction of an anaerobic digestion (AD) plant at Teesside, the first of six planned over the next five years.

This will be matched with a further £8m from the private sector, according to the Government.

The GIB will also invest £5m to fit manufacturer Kingspan's UK industrial facilities with systems that will reduce its energy consumption by 15%.

Bank chief executive Shaun Kingsbury will set out his plans during the event, which will also be attended by Secretary of State for Energy (NYSEArca: JJE - news) and Climate Change Edward Davey.

Mr Davey said: "The Green Investment Bank will help attract the capital required to allow the green economy to blossom, encouraging investors to market and kick-starting low-carbon and energy efficiency projects.

"In combination with our electricity market reforms, there will be lasting economic benefit as a result, with new expertise and jobs created, that will give the UK a competitive edge."

Dan Barlow, of environmental group WWF Scotland, said the launch of the bank represented an exciting step towards a low carbon economy, while Scottish energy minister Fergus Ewing said it presented "huge opportunities" for green energy projects north of the border.