More than £500m of Scottish projects already under consideration
A nationwide programme of converting to greener street lighting will be brought forward by the Scottish Government to be considered for Green Investment Bank (GIB) funding.
The GIB is already considering more than £500m worth of Scottish low carbon projects across the public and private sector. Work is on-going to assess to what extent the UK GIB will invest in these projects and what structures can support this investment.
Speaking at a Green Investment Bank conference in Edinburgh today, Rural Affairs Secretary Richard Lochhead said: “By working closely with the GIB, converting Scotland’s street lighting to LED is a programme the Scottish Government has identified which would be ideal for potential GIB funding. Payback time is estimated at around seven to nine years, which is an outstanding spend to save case based on energy savings of as much as 40 to 60 per cent. It is an excellent example of how investing in low carbon projects can have long term savings as well as helping to protect the environment.
“Projects like this are important as indicative analysis by the Scottish Futures Trust indicates that an investment of £350 million in low carbon measures – across the Scottish public estate – could lead to potential cost reductions in the region of £900 million.
“The GIB is already actively looking at projects in excess of £500 million and I have no doubt it will not be long until there is a significant Scottish GIB investment announcement.
“Scotland is already an international destination of choice for low carbon investment as well as being a global leader in tackling climate change. So there really is no better place for green investment.”
UK Government Business Secretary, Vince Cable added: “After only five months in operation, the Green Investment Bank is already punching above its weight. Today’s results are a pleasing start for this groundbreaking institution. They show that the Bank is doing precisely what we set it up to do – draw in and not shut out private sector capital.
“I now want to see the Bank move on to become a valued and integral part of the UK’s financial infrastructure, playing a pivotal role in the financing of our transition to a green economy. We must seize the opportunities for jobs and economic growth in this sector before others do.”
Read more about the work of the Scottish Futures Trust project here.