Co-op Bank commits £200m to green ventures

THE Manchester-based Co-operative Bank has pledged to lend £200m to renewable energy companies in 2010.

The bank also intends to expand its renewables team in Manchester and create a new Scottish–based team.

The commitment reinforces the Manchester bank’s position as a leading provider of renewable energy finance.

Richard Wilcox, head of renewables at the Co-operative Bank, said: “We are delighted to provide this commitment to funding renewable energy projects, particularly those of small to medium size where the bank has built specialist expertise.

“These are often overlooked by many of the banks yet it is important that support is provided, as a successful transition to a low carbon economy will not solely occur by relying on the major renewables schemes.

“Renewable energy is a growth area that is becoming increasingly attractive due to government incentives aimed at kick starting the market which will hopefully lead to the country achieving its long-term carbon reduction targets.”

In 2007, the bank ring-fenced £400m specifically to fund renewable energy and carbon reduction projects.

It has since built considerable expertise in supporting development of renewable technologies such as onshore wind, hydro, biomass and combined heat and power systems.   
The bank specialises in small to medium projects of up to a capital value of £25m. 

It has seen considerable interest recently, particularly from community groups and smaller developers eager to utilise the government’s new Feed–In Tariff regime.

The Co-operative Bank has continued to lend to green initiatives throughout the financial crisis while many other banks have reined in lending to corporates and business.

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