The UK government has today begun the process of selling off Edinburgh-based green fund the Green Investment Bank (GIB).

The GIB is thought to be the UK’s largest private renewable energy fund, with current capital commitments of £2.6 billion in 70 green infrastructure projects having been set up in 2012 to support green-energy projects.

Last summer Chancellor George Osborne said transferring it to private hands would help it attract more capital and give it more freedom to invest in renewables.

The sell-off was announced soon after Westminster announced an end to subsidies for onshore windfarms, leading many people to conclude that the government is lukewarm on green energy.

UK business secretary Sajid Javid signalled that the Conservative government was pressing ahead with the privatisation in a speech at the Lord Mayor’s Trade and Industry Dinner at Mansion House in London.

The transaction will involve the sale of existing shares owned by the Government and additional capital from new investors.

Mr Javid said: “The GIB is a world first, and it is a sign of its success that the idea is being copied globally. Having proven the business model works, we now want it to make an even greater impact.”

Lord Smith of Kelvin, chairman of GIB, said today: “Attracting new investors is vital if GIB is to fund its ambitious plans to double the size of its business, expand into new parts of the UK green economy and deliver a growing green impact.

“I am confident that the sale process will provide GIB with good new owners who will support GIB’s continued growth and leadership role in the global green economy long into the future.

“This launch, and the wider plans to introduce new capital and new owners to GIB, has the full support of GIB’s independent Board.”

Scotland’s minister for business energy and tourism, Fergus Ewing, said: “The Green Investment Bank is an Edinburgh-headquartered major financial institution – and we welcomed its creation in 2011. The Scottish Government has sought assurances from the Secretary of State that the privatised institution’s ‘green’ investment criteria and Scottish headquarters can be maintained. We have urged caution on the privatisation– and will watch closely during this process to safeguard Scotland’s environmental and economic objectives.”