Asset strippers snap up green bank

BILLIONS of pounds of Government- backed green energy projects have been sold for £2.3bn to an Australian firm with a reputation for asset-stripping.

Yesterday, ministers confirmed the sale of the Green Investment Bank (GIB) to a consortium led by Macquarie Bank despite huge opposition and months of delays.

Critics fear the new owners, who have a stake in National Grid and until recently owned Thames Water, will now sell assets to bolster their own profits.

Macquarie was notorious during its ownership of Thames Water for taking out £1.2bn of dividends. Days after it sold its stake, Thames was hit with a £20m fine for allowing untreated sewage in to the River Thames.

After it had announced it would be taking over the GIB, Macquarie said it would be selling up to £230m of assets in the business it did not want. Ed Davey, former energy secretary, said: ‘Selling the GIB is environmentally irresponsible and, on the eve of an election, is politically dubious.’

Doug Parr, policy director for Greenpeace UK, said: ‘Most recognise the value of an industrial strategy and an active state trying to promote the right kind of sectors. The GIB would have been a good vehicle to do that and we are short of that now.’

TUC general secretary Frances O’Grady said: ‘It’s a shame that such a successful investment bank will no longer be boosting the public purse, but will be lining corporate pockets instead.’

The bank was set up in 2012 by the coalition government to fund new renewable energy projects.

In all, it has backed 99 green infrastructure projects. Ministers decided to privatise it in 2015, saying it would give the bank more freedom to borrow and allow it to attract more capital.

Last night Macquarie pledged a £3bn investment in wind, solar and other green energy in the UK and Europe, and said it would continue to run the bank from offices in London and Edinburgh.

Climate change minister Nick Hurd said: ‘We have secured fair value for the UK taxpayer.

‘GIB has a well-funded new owner committed to the bank’s green mission.’