Government announce safeguard for privatised Green Investment Bank based on Regen SW constitution

The government has announced it will protect the ‘green purpose’ of the Green Investment Bank after privatisation, using an approach modelled on Regen SW’s constitution.

A ‘special share’ in the bank will be held by a separate company independent of both the bank and the government.

The bank would not be able to make changes to its green mission unless this ‘Special Shareholder’ gives its consent.

The measure was introduced in the House of Lords as part of the bill to privatise the bank by Lord Robin Teverson. The approach is based on Regen SW’s constitution which has a similar ‘special membership’ that prevents changes to its objects without the consent of three trustees, one of which is Lord Teverson.

Lord Teverson welcomed the announcement saying “The Green Investment Bank has a pivotal role to play in the transition to a low carbon economy. I am pleased that the government has accepted the case for a constitutional safeguard of the bank’s mission and purpose that draws on the Regen model and experience.  It is vital that both organisations keep their green purposes for the long term; and Regen has shown the way to achieve it.”

Merlin Hyman chief executive officer of Regen SW commented “Regen has a unique role as an independent champion of sustainable energy which is safeguarded in its constitution. We are delighted to see that constitutional model has in turn helped to protect the vital mission of the Green Investment Bank after privatisation”.