Financing Local Net Zero

Attracting Investment

There are opportunities to obtain finance for local net zero projects that go beyond the more familiar funding sources. We would encourage local authorities and other project developers to consider alternatives. The number of local net zero projects in development is expected to increase considerably in future, and it’s unlikely that government grants and charitable funds will be able to keep pace with this demand.

Information is provided here about some of the alternative financing currently available. If you would like further advice, or if you have information to share about similar investment opportunities, please contact us info@gsenetzerohub.org.uk

Abundance Crowdfunding - Community Municipal Bonds

Abundance helps local authorities and other public sector organisations to finance infrastructure projects through citizen and stakeholder investment. Abundance has been exploring new ways to achieve this through crowdfunding. To this end, it has now launched a fund to help local authorities set up pilot Community Municipal Bonds.

The Bonds are used to raise finance for green and low carbon infrastructure projects. They are designed to provide an efficient, scalable and cost-effective alternative to conventional funding sources. The Bonds are also intended to bring the benefits of real engagement from citizens and more sustainable and thriving local economies.

Six grants of up to £25,000 are available to support local authorities who want to fund local public infrastructure through this new approach. The funds are provided via Horizon 2020, a European funding programme for research and innovation.

Find out more about Abundance

Allia C&C

Allia C&C helps charities and social enterprises raise loan finance, by connecting with investors through listed and unlisted bonds. The company supports a range of organisations whose core purpose is to transform lives, communities and the environment. With extensive expertise across different sectors, particularly housing, care and education, Allia C&C helps to ensure the optimal funding solution is achieved to deliver more impact.

Allia C&C has strong connections with ethical investors from across the market, including high street banks, retail investors, pension funds and institutional investors, offering them access to, and expertise in, socially responsible investments. This means that Allia C&C is able to align high social impact businesses with investors who seek both a financial return and to see their money do good in society.

Find out more about Allia C&C

Pure Leapfrog

Pure Leapfrog assists local authorities and community projects in financing their net zero transition plans. It helps project developers arrange debt finance, can assist with green and sustainable bond frameworks, and community share raises. It contributes to the Financing a Just Transition Alliance and the Place-based Impact Investing Forum.

Find out more about Pure Leapfrog

Sustainable Development Capital LLP (SDCL)

SDCL works with the healthcare sector with a focus on energy efficiency, on-site generation and clean energy projects that reduce costs and risks for the end user, to deliver cleaner, smarter and more resilient energy solutions. Its solutions require no up-front capital outlay for the end user and result in lower operating costs. It arranges and finances turnkey solutions with assured outcomes.

Find out more about SDCL

UK Infrastructure Bank (UKIB)

UKIB is the new, government-owned policy bank, which is providing £22bn of infrastructure finance and partnering with the private sector and local government to finance a green industrial revolution and drive growth across the country.

Local authority lending: UKIB offer financing to local and mayoral authorities across the UK, for high-value and complex economic infrastructure projects.

Private sector financing: UKIB provides a range of financing tools across the capital structure, including loans, credit enhancement and equity investments. Projects must meet UKIB principles.

Click the button below for further information.

Learn more about UKIB

Find out how Local Climate Bonds can support Net Zero projects - Webinar and case study

Our Local Net Zero Hub colleagues in the South West region recently held a webinar to demonstrate how climate bonds can finance local net zero projects. The webinar showcases Cotswold District Council’s successful £500k Community Municipal Investment scheme, which invited its local community to invest in local projects to tackle the climate emergency. The online event was supported by the Green Finance Institute, Abundance Investment and Cotswold District Council.

You can access a recording of the webinar HERE.

A copy of the slide deck used during the webinar is HERE.

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