Out-Law News 1 min. read

Planned Scottish National Investment Bank could support low-carbon growth


Potential options for a Scottish National Investment Bank (SNIB) have been put forward for consultation by the Scottish government.

First minister Nicola Sturgeon announced plans to establish a national investment bank as part of her Programme for Government in September. The working remit of the bank is to provide and catalyse investment in order to accelerate Scotland's transformation to a "low carbon, high-tech, connected, globally competitive and inclusive economy".

The Scottish government is now seeking views on what the SNIB should be prioritising in order to achieve those goals, and for examples of governance and operational models that would work well. The responses will be used by a government advisory group, chaired by Tesco bank chief executive Benny Higgins, as it develops an implementation plan.

Project finance expert Michael Watson of Pinsent Masons, the law firm behind Out-Law.com, described the policy proposal as a "welcome development".

"The proposed SNIB represents a positive initiative from the Scottish government, which recognises the need to stimulate economic and productivity growth through a bold intervention which is targeted at some of the challenges that face developed economies generally and Scotland in particular," he said.

"There are many international examples of similar initiatives, many of which could provide useful learning points as to how such an initiative could address funding/financing and capacity building in the economy," he said.

Speaking at an event in Glasgow late last week, Nicola Sturgeon said that SNIB was part of a package of measures that the Scottish government was taking forward "to ensure that as we transform our economy, we leave no one in our society behind". This would include setting up a 'Just Transition Commission' to provide advice on the move to a low-carbon economy, she said.

The first SNIB consultation closes on 20 November.

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