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Both Derby and Nottingham's bids to host the Green Investment Bank (GIB) have been officially recognised by the government. The battle to secure the bank heated up as Vince Cable published criteria to determine where it should be based.

The GIB's establishment has now moved a step closer as business secretary Cable published the trio of criteria for deciding where it will be based and its first priorities for the first four years.

A successful location must be able to recruit and retain the specialist staff needed to run the organisation; enable the GIB to work closely with other parties involved in deals as well as other investment bodies and green technology providers and be in a location that provides good value for money.

Twenty-two locations across the UK have registered their interest in hosting the GIB.

The business secretary also announced that, to accelerate private sector investment in the green economy, a new team will be set up within the Department for Business to drive investment in the UK’s green infrastructure until the Green Investment Bank is formally established.

The team, which will be called UK Green Investments (UKGI), will have access to the £100m made available by the government to invest in smaller waste infrastructure projects.

"I want to set up the Bank as soon as possible, so it can start accelerating investments in these key sectors and help British companies take advantage of these opportunities," said Cable. "Setting out the priorities for the bank and establishing UK Green Investments for April 2012 are a major step forward."