On 25 May 2012 the draft Enterprise and Regulatory Reform Bill
had its first reading in Parliament. Amongst other measures, the
Bill provides powers to the Government to designate formally the
Green Investment Bank ("GIB"), to provide financial
assistance to the GIB and to secure its operational independence
from Government. The proposed target for the designation is the UK
Green Investment Bank plc, a public company limited by shares which
was incorporated on 15 May 2012 and which must be wholly owned by
the Crown at the time of designation.
The proposed legislation sets out 2 criteria which must be met
before the GIB can be formally designated (the designation will be
by a separate Order). Firstly, the Secretary of State must be
satisfied that the GIB's objects set out in its articles of
association are such that the GIB would engage only in activities
that involve, are incidental or conducive to, making, facilitating
or encouraging investments that the GIB
