Lord Stern to advise Government on Green Investment Bank

Lord Stern, who produced the influential Stern Review on climate change, has been appointed to advise ministers on the establishment of the Green Investment Bank (GIB), the central plank of the Government's green growth strategy, alongside eight other business leaders. Together they bring financial, energy, environmental and infrastructure expertise to the GIB, the Department of Business, Innovation and Skills said.

Announcing the new appointments, Business Secretary Vince Cable said: "I am very pleased that we have secured such an excellent mix of people. The group has wide-ranging credentials relating to energy and other environmentally important industries, hands-on financing experience and a deep understanding of infrastructure projects. We also have people with a background of starting up new credit institutions and managing a development bank."

Advisory board members
Other members of the bank's advisory group include Simon Brooks, UK vice president, European Investment Bank; John Burnham, global head of Infrastructure, Citigroup, David Gregson, chairman of Phoenix Equity Partners; Melville Haggard, managing director, Quartermain Advisers Limited; Dima Rifai, managing partner, Paradigm Change Capital Partners LLP; Penny Shepherd, chief executive, UK Sustainable Investment and Finance Association; James Smith, former chairman of Shell UK; and Bob Wigley, chairman of Yell Group and chair of the Green Investment Bank Commission which reported in July 2010.

Nicholas Stern of Brentford Kt, FBA

Leading Global Economist and Chairman of the LSE Grantham Institute

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Critical role
The advisory group is being chaired by City heavyweight Sir Adrian Montague and is seen as critical to the future success of the bank, which will start funding green infrastructure projects from next April. The Government has pledged £3 billion to the GIB and through the bank hopes to leverage a further £15 billion of private sector investment to accelerate the UK's transition to a green economy.

"I have worked closely with Vince Cable to select the nine members to join me on the Green Investment Bank Advisory Board. They all bring a wealth of experience with them and I can't wait to start work with the group during this critical and exciting time in the development of the Green Investment Bank," said Sir Montague.

Phased establishment
The advisory group will play a consulting role only during the banks' incubation period while it awaits approval by the European Commission to comply with state aid rules. Once approved the bank will be a stand-alone institution, but will not have full borrowing powers until 2015, and then only on condition the Government has met its target that the national debt to GDP ratio is falling.