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IMPACT INVESTMENT
Supporting London’s 2030 net zero ambition
IMPACT INVESTMENT
Supporting London’s 2030 net zero ambition
London Treasury plays a central role in delivering the Mayor of London’s ambition for the city to achieve net zero by 2030. We combine policy leadership, including climate budgeting, with targeted capital deployment through the London Climate Finance Facility for green finance.
Overview
We operationally manage and administer the delivery of the Mayor’s Green Finance Fund (GFF), an energy infrastructure scheme supporting public sector bodies to deliver decarbonisation programmes across London.
We also oversee the GLA’s legacy environmental investments and the Mayor of London’s Energy Efficiency Fund (MEEF).
Our latest partnership project has been working closely with Sustainable Development Capital LLP (“SDCL”) on the London Edge Fund.
London Edge Fund
Launched in June 2024, the London Edge Fund is a £100m investment vehicle targeting energy efficient and decentralised energy projects in London that deliver significant reductions in energy use, greenhouse gas emissions and air pollutants.
The fund focuses on projects across healthcare, education, transport, district energy networks, public sector buildings and digital infrastructure.
The fund is managed by Sustainable Development Capital LLP, with London Treasury providing strategic support, origination and public sector interface.
Projects who benefit from EDGE’s energy-as-a-service require no upfront capital, can be structured as off-balance-sheet activities, and combine technical, financial and operational expertise.
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 local authority energy projects and wider public sector decarbonisation.
Eligible projects include: renewable energy, public sector energy efficiency and clean transport infrastructure.
Organisations eligible for the GFF include: the GLA Group, London boroughs, social housing providers, NHS bodies, universities, colleges and accredited museums.
Key features
Low-cost loans (at least 40bps 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 to date it has:
Climate budgeting
Climate budgeting is a mechanism for identifying and highlighting climate measures, embedded in the normal financial budget setting process. For the past four financial years, London Treasury has worked with the GLA Groups to identify how its spending is linked to the Mayor’s commitment of making London net zero by 2030.
The process has helped to identify the finance gaps needed to deliver these climate measures, which can be partially addressed by the GFF or EDGE.
Building on our work with the GLA Group, we run regular workshops, with London Councils, to help London local authorities to develop their own climate budgeting processes. As a result of the first pilot programme, seven boroughs published a climate change narrative as part of their 2024-25 and or 2025-26 financial budgets:
LB Camden | LB Hounslow | RB Kingston | LB Islington | City of Westminster| LB Southwark | LB Lewisham
For enquiries: greenfinance@london.gov.uk
