The Green Investment Bank will be based in Edinburgh, it has been announced.
Business secretary Vince Cable said the GIB headquarters will be in Edinburgh, with its main transaction team based in London.
He said: “Harnessing the strengths of Edinburgh and London will support the Green Investment Bank’s ambition to become a world leader.
Edinburgh has a thriving green sector and respected expertise in areas such as asset management. London, as the world’s leading financial centre, will ensure that the GIB’s transaction team can hit the ground running.
“This decision will allow the GIB to operate effectively and achieve its mission of mobilising the additional investment needed to accelerate the UK’s transition to a green economy.”
The Government will invest as UK Green Investments in green infrastructure projects from April 2012, focusing on the GIB’s five priority sectors, ahead of obtaining state aid approval.
A Green Deal finance company, established by companies including PwC and Carillion, is among the groups currently looking for investment from the GIB.
A total of 32 sites had been put forward to host the GIB.
Scottish Secretary Michael Moore added: “The size and scale of the UK’s single energy market ensures the level of investment that will unlock Scotland’s renewables future, providing sustainable and affordable green energy across the UK. It makes perfect sense to have a GIB presence there.
“By basing the GIB’s corporate HQ, asset management and administrative functions in Edinburgh and its transaction team in London, we can harness expertise across the country to deliver a strong and successful GIB for the UK.”
The next step for the GIB is the recruitment of the chair and senior independent director so that it will be in a position to be fully operational in autumn, subject to state aid approval for the GIB.
The GIB is expected to employ 50-70 full time equivalent staff across the two sites.