EDINBURGH is bidding to host the world’s first investment bank exclusively dedicated to encouraging environmentally friendly investment.

The Green Investment Bank would function in a similar way to regular banks, but invest profits in renewable energy technologies and other low-carbon energy projects.

The bid is part of Government targets to make Scotland the first country to become 100 per cent reliant on renewable energy sources by 2020.

Speaking to The Student, Dr Andy Kerr, director of the Edinburgh Centre on Climate Change, emphasised the potential impact of the Green Investment Bank.

He said, “All countries have struggled to wean themselves off carbon fuels and if you can get a country to show them that you can have a prosperous economy and reduce your emissions and non-renewable fuel usage, that is much more important than physically reducing emissions.

“Scotland definitely has the capacity to deliver 100 per cent of its energy from renewable sources, whether it happens by 2020 or by 2030.

"We could represent leadership to the rest of the world.”

Edinburgh is competing against more than twenty other cities as the location for the Bank’s headquarters, including London, Manchester and Leeds.

Chief executives from six leading investment banks have jointly written a letter to Business Secretary Vince Cable in support of Edinburgh's bid.

Edinburgh has also received the backing from the City Councils of five other Scottish cities.

Jenny Dawe, City of Edinburgh council leader said, “As a global financial centre at the heart of low carbon innovation, Edinburgh’s reputation, skills base and international reach can help distinguish the new bank and what it aims to achieve for the whole of the UK."

Edinburgh’s proposal emphasises its position as the fourth largest financial centre in Europe in terms of equity assets.

Speaking on behalf of the Edinburgh Green Investment Bank Group (EGIBG), Owen Kelly, Chief Executive of Scottish Financial Enterprise, said, “The response we’ve had to our plans has been overwhelmingly positive and there is real consensus that bringing the Green Investment Bank could be a game changer in accelerating the commercialisation of low carbon technologies both in Scotland and across the UK.”