Edinburgh (pictured) will become the headquarters for the Government’s new Green Investment Bank, the Department for Business announced today. The bank will however be split, with the main transaction team located in London. The Department for Business said this move was made in order to “harness the strengths” of both cities.

Business Secretary Vince Cable said: “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 UK 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 purpose of the bank, which will be set up with £3 billion of public money, is to help firms finance early-stage renewable energy schemes. The bank expects to employ up to 70 full time staff and will open in the autumn.