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Supporting London’s 2030 net zero ambition
IMPACT INVESTMENT
Supporting London’s 2030 net zero ambition
London Treasury plays a key role in advancing the Mayor of London’s ambition for London to achieve net zero by 2030, by supporting policy development such as climate budgeting and providing green finance.
OVERVIEW
We manage the Mayor’s Green Finance Fund that supports public sector bodies with their decarbonation programmes and oversee the GLA’s legacy environmental investments and the Mayor’s Energy Efficiency Fund (MEEF). Our latest partnership project has been working closely with SDCL to develop and launch the exciting new London Edge Fund.
London Edge Fund
Launched in June 2024, London Edge Fund is a £100m fund that invests in projects that can achieve significant reductions in energy usage, greenhouse gas emissions or other pollutants across London.
The fund focuses on efficient and decentralised generation of energy (EDGE) projects in the following areas: healthcare, education, transport, district energy, public sector buildings and digital infrastructure.
London Edge is managed by SDCL, with support from London Treasury. The fund’s investment model involves providing the finance and expertise needed for an entire project cycle, from development to operation.
The project sponsors do not have to provide any upfront capital and this ‘energy-as-a-service’ investment model can be provided as an off-balance sheet solution.
For enquiries contact: LondonEdge@sdclgroup.com
Green Finance Fund (GFF)
The GFF is a £500m debt fund, providing direct lending from the Greater London Authority (GLA), to accelerate investments in green projects from public-sector bodies across London. To be eligible for finance, projects must involve renewable energy, energy efficiency or clean transportation.
The following organisations are eligible for finance: GLA Group, London local authorities, Social Housing Providers, NHS bodies, Universities, Colleges and Museums (those accredited under the UK Museum Accreditation Scheme).
Key features
Low-cost loans (at least 20bps below the Public Works Loan Board (PWLB) Certainty Rate)
Flexible terms – such as drawing down finance when needed, interest only accrues on amounts drawn
No commitment or prepayment fees
Flexible tenor, up to 25 years
Flexible repayment method (maturity, annuity or equal instalments of principal)
Investment highlights
The GFF was launched in June 2023 and during its first year of operation it has:
