Fund Managers Support Edinburgh’s Bid to Host Green Investment Bank (UK)

Edinburgh’s bid to host the Green Investment Bank (GIB) has received a significant boost following the endorsement of a group of leading international fund managers.

Chief Executives from Standard Life, Baillie Gifford, Kames Capital, Artemis Investment, Martin Currie and Aberdeen Asset Management have written a joint letter to Vince Cable and officials at the Department of Business Information and Skills urging them to locate the new Bank in Edinburgh.

They argue that their businesses have thrived in Edinburgh “because of the city’s capacity to attract and retain people with high levels of investment and experience” and that the Green Investment Bank would benefit from the “quality of Edinburgh’s transaction system and its cost effectiveness, infrastructure and global connections”.

It comes as five other Scottish cities also get behind Edinburgh’s ambition to host what will be the world’s first investment bank dedicated to green technologies. In a show of unity, Leaders of Aberdeen, Dundee, Glasgow, Highland and Stirling Councils have all expressed their support for Edinburgh, arguing that it will have a positive knock-on effect across Scotland.

With around 20 locations expected to submit their business cases to the Department of Business Information and Skills today, it is hoped these endorsements will demonstrate the breadth of support that exists to bring the Green Investment Bank to Edinburgh.

Edinburgh’s business case has been developed by the Edinburgh Green Investment Bank Group – a partnership of public and private sector organisations including Scottish Financial Enterprise, City of Edinburgh Council, Edinburgh Chamber of Commerce, Scottish Enterprise, Grant Thornton, PWC and local MPs Mike Crockart and Mark Lazarowicz.

Speaking on behalf of the group, Owen Kelly, Chief Executive of Scottish Financial Enterprise, says: “An impressive broad range of interests from the worlds of industry, government and politics have been working together to develop Edinburgh’s proposal to be the home for the new Green Investment Bank.

 “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.”

Some of the key arguments included in Edinburgh’s bid include:

•  Edinburgh is already the location of choice of global firms in financial and professional services. The Green Investment Bank will be able to draw on a talent pool of 60,000 financial services employees in Edinburgh’s travel-to-work area.
• Edinburgh is ranked the fourth largest financial centre in Europe in equity assets and has an impressive track record of mobilising and managing significant levels of finance from global markets, which will be critical to the GIB’s long-term success
• Edinburgh has proximity to levels of renewable energy and low carbon development not found elsewhere in the UK. Locating the GIB in Edinburgh will make the UK a global centre of excellence.
• The GIB will also benefit from the world class academic research in renewables and low carbon technologies currently being undertaken by universities in the Edinburgh area and have access to thought leaders to help shape future priorities.
• Edinburgh is one of the most well connected cities in the UK with direct flights to 15 other UK airports and 109 international airports. It also has excellent rail, bus and road links that will ensure the GIB can access customers and suppliers easily, wherever they are based.

 Mr Kelly adds: “We have put together a very compelling argument. As the UK’s most complete financial services centre outside of London, Edinburgh has all the necessary skills and talent that the Green Investment Bank will require.

 “When you combine that with the vast renewable and low carbon expertise that exists both in and around Edinburgh area as well as its proximity to key developments across Scotland the North of England, we believe that Edinburgh is best placed to deliver the UK government’s low carbon ambitions.”

 City of Edinburgh Council Leader, Cllr Dawe, 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. Endorsement by Scotland’s cities and our international finance community adds weight to the business case for Edinburgh and we’re delighted to have their backing.”

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Offshore WIND staff, January 31, 2012; Image: scottish-enterprise