Brussels, 17/10/2012 (Agence Europe) - On 17 October, the European Commission authorised the funding of £3 billion (around €3.7 billion) granted by the United Kingdom for the creation of a Green Investment Bank (GIB) investing in environmentally friendly projects for which a market failure has been identified.
It concluded that this funding is in line with EU state aid rules and foresees several safeguards to avoid the crowding out of private investment and preserves a level playing field between competitors in carrying out “green projects”. GIB projects in favour of companies will have to be notified to the Commission, which will assess them with regard to rules on state aid. Project holders seeking funding from the GIB will be requested to provide evidence that they have been denied funds or have not obtained all the necessary funding from market operators. The GIB's intervention will also rest on a so-called “additionality principle”: whenever possible, funding provided by the GIB will come in addition to market financing.
The set-up of the GIB is expected to further the UK's 2020 target of reducing carbon emissions and accelerating the development of a “green economy”.
The approval by the Commission is granted for a period of four years and covers the aid granted to the Green Investment Bank (GIB) itself. (FG/transl.fl)