The bank will use £3bn of government money to invest in renewable energy, carbon capture and storage and energy efficiency measures.
This money will help fund businesses looking to innovate in this area. "£3bn of government money will leverage private sector capital to fund projects in priority sectors," said Cable. " Such as 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 a development in the north east of England that will generate energy from waste.
A further £8m will go to the construction of an anaerobic digestion plant at Teesside, the first of six planned over the next five years.
This fund will be matched with another £8m from the private sector.
The Green Investment Bank will also invest £5m to fit manufacturer Kingspan's UK industrial facilities with systems that will reduce its energy consumption by 15%.
The banks location signifies a fantastic opportunity for Scottish green energy ventures. Edinburgh presents the best Green Investment Bank location for the UK," said Fergus Ewing, the Scotish energy minister. Not only is the city a major financial centre, but Scotland already leads the world in renewable energy, and has built up world leading expertise from the oil and gas industry."
The Scottish Green party did not match Ewing's positive
comments. Instead, they said it will be hard for the bank to "live
up to the hype"
"Investing in sustainable, clean forms of energy is obvious but this bank isn't being allowed to borrow from the markets so its full potential is being restricted," Patrick Harvie, the party's enterprise spokesman,
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