The UK Green Investment Bank (GIB) and the Department of Energy and Climate Change (DECC) have agreed on terms for a £200 million international green investment pilot programme.
The latest investment is in addition to the £3.8 billion the GIB has to invest in UK projects.
The programme will be focused on an initial three regions: East Africa, South Africa and India, where it will be working with investments in renewable energy and energy efficiency.
According to GIB, the programme’s business model will mirror the business plan that has been developed for the UK. This means that GIB plans on investing in commercial projects and helping the private sector grow.
Since its beginning in 2012, GIB has invested £1.8 billion in 42 projects, which are projected to generate £6.6 billion of new infrastructure investment and save 3.7 million tonnes of CO2 per year.
GIB is finalising the programme, and will work to create a team well suited for managing the project. They will be overseen by a board with members from DECC and GIB.
Shaun Kingsbury, chief executive of UK GIB said: “This important new pilot programme will see GIB investing outside the UK for the first time. I am confident that our unique business model, tried and tested in the UK, will have a very positive effect in developing countries, helping them to build vital new green energy infrastructure.”