Potential investors for the Green Investment Bank (GIB) will be asked to confirm their commitment to its green values.
The government will look at their green investment principles and see how they intend to protect them, according to the its latest policy statement on the future of the GIB.
It states: “There seems no commercial rationale for buying into this unique company with the intention of transforming it into something different. If the aim was to acquire a general infrastructure investor, investors could simply buy into an alternative investment vehicle.”
Shareholders must agree on an Information Memorandum and ensure it continues to invest in a way which achieves a positive green impact.
They must also maintain GIB’s existing standards for reporting on its green investment performance.
It comes as the government plans to move UK GIB into private ownership.
It has made the decision as it believes the firm has “proved itself as a successful commercial enterprise”.
The statement adds it is “confident there is strong interest in acquiring a stake in GIB”. This includes a number of large-scale investors such as UK pension funds, infrastructure funds and sovereign wealth funds.
The GIB invested £2 million in sewage heat recovery systems across Scotland earlier this year.