The UK’s new Green Investment Bank will receive advice and help from the German national bank KfW. Bosses of both institutions signed a memorandum of understanding in Frankfurt yesterday which formalises an exchange of “experience and expertise in environmental protection and climate finance”.

The bank is the world’s first solely dedicated to greening the economy and is part of the Government’s plans for a green economy. KfW has been in talks with the advisory group since the bank’s inception. Both groups suggested continuous co-operation would be key to improving green finance in the future.

Dr Ulrich Schröder, Chief Executive Officer of KfW Bankengruppe said: “In order for activities in environmental protection and climate finance to be successful, close bilateral links between the national European promotional banks are indispensable.”

The bank is to be initially capitalised by the Government with £3 billion in equity.