The European Investment Bank has granted a £50 million loan to the University of Edinburgh that will partly be used to contribute to the development of the new Edinburgh Centre for Carbon Innovation.

In association with Napier University and Heriot Watt University, the University of Edinburgh is taking on the creation of the centre, which will provide research and innovation in areas relating to climate change.

The Edinburgh Centre for Carbon Innovation outlines three main purposes for its work: Enterprise and Innovation, Skills and Learning, and a Low-Carbon Hub.

The new centre is to be located in the High School Yards area on Drummond Street, and the main refurbishment is set to commence early this year.

ECCI director, Dr. Andy Kerr expressed his excitement over the funding, saying, “This will help realise our aim of equipping the next generation of industry leaders and opinion formers with innovative solutions and the skills to deliver a low-carbon future.”

Edinburgh University Principal Timothy O’Shea praised the loan, saying, “It will help fund a range of new build and refurbishment projects that will enhance the quality of the research and teaching infrastructure at Edinburgh.

“It will also make a significant contribution to our commitment to energy efficient facilities for students and staff.”

The centre will provide professional skills training in Executive Education and Continuing Professional Development, as well as Masters courses, while the enterprise side will encourage businesses in Scotland and beyond to adopt innovative ways to reduce carbon emissions.

It is also hoped that the initiatives will bring together businesses, academics and leaders to create viable solutions for the future.

The Edinburgh Centre for Carbon Innovation website outlines the Centre’s function as a low-carbon hub, “bring[ing] together academics, policy makers, industry leaders, entrepreneurs and investors; facilitating knowledge-exchange, co-operation and joint action towards delivering a low carbon future.”

On 11 January this year, the centre hosted a showcase at the University of Edinburgh Informatics Forum, bringing together a wide range of Scottish innovation within the field.

Stewart Stevenson, MSP, Minister for the Environment and Climate Change said: “The need for Scotland and the rest of the world to move to a low carbon economy is more urgent than ever before. This showcase event provides an excellent marker of how the opportunities offered by a low carbon economy are already being seized in Scotland. I look forward to seeing how Scotland’s businesses continue to rise to this challenge over the coming months and years.”

The loan will complement the £1.6 million that the project received from the Scottish government in June 2011.