Posted on: 20/03/2018
The Public Accounts Committee (PAC) has concluded that the Green Investment Bank (GIB) failed to live up to its original aims and now may never fulfil its objectives following its sale to Macquarie.
MPs said the Department for Business, Energy & Industrial Strategy (BEIS) does not know whether GIB achieved its intended objectives of encouraging investment in the green economy and creating an institution that lasts.
Ministers were accused of selling the bank to reduce the public debt, instead of furthering the lender’s aims.
The committee expressed concerns over whether GIB – now rebranded as Green Investment Group – will continue to support the UK’s low-carbon policies.
No impact assessment
Sir Geoffrey Clifton-Brown, the committee’s Deputy Chair, said: “Government did not carry out a full assessment of the bank’s impact before deciding to sell, nor did it secure adequate assurance over the Bank’s future role.
“It was a mistake to repeal legislation protecting GIB’s green investment obligations without securing firmer commitments from potential buyers.
“Macquarie told us such commitments did not affect the price it was prepared to pay, indicating the Government could and should have strengthened these commitments contractually.”