London-based investment fund Sustainable Development Capital (SDCL) has launched a legal challenge against the UK government’s decision to select the Australian investment bank Macquarie as the preferred bidder in the £2bn ($2.4bn) privatisation process of the Green Investment Bank (GIB).

The UK government decided in 2015 to sell a majority stake in the Edinburgh-based GIB, the state backed fund created to back projects and grow private investment, including renewables.