The Mayor of London, , today outlined bold proposals
to secure more than £500 million for investing in climate action
by issuing green bonds.
He would become the first Mayor of London to issue green bonds in
this way and at this level - raising funds for new and existing
projects which deliver environmental benefits, and a more
sustainable economy.
Sadiq’s plans will accelerate London’s push to net-zero by
helping to tackle rising energy bills and the climate emergency.
The Mayor is committing a record £90 million of GLA funds to
support the ambition, with £4 million to develop high-impact
green investment opportunities for the public and private sector;
and £86 million to support a substantial GLA Green Bond
programme, financing direct decarbonisation investment by the GLA
Group and its strategic partners as part of the Mayor’s Green
Financing Facility.
This investment will support projects making social housing and
public buildings energy efficient, as well as clean, local energy
projects providing solar PV, heat pumps and district heating
across London. By leading the way and committing an initial £90
million the Mayor will help unlock over £500 million to finance
such low-carbon projects.
Improvements to social housing will help tackle inequalities
exposed and exacerbated by the pandemic and the cost of living
crisis. London has some of the highest levels of fuel poverty in
the country with one in nine* London households unable to meet
the cost of heating their homes. Low-carbon heat projects help
reduce energy bills and improve living conditions for thousands
of Londoners. They will also support Londoners with the skills
they need for jobs in the green economy, rebuilding the capital
post-COVID so that it’s cleaner, greener and fairer.
The Mayor’s proposals are estimated to support more than one
million tonnes of carbon savings over the lifetime of the
projects and lower energy use by 328,638 MWh a year, the
equivalent to the energy used by nearly 85,000 homes in a year,
while supporting jobs in London.
London continues to be a world leader in green finance, this new
funding builds on the £30 million he committed to the Mayor’s
Energy Efficiency Fund at COP26 in Glasgow which is expected to
leverage up to £150 million of investment into London projects.
This latest announcement shows a clear acceleration of efforts to
achieve his net-zero ambitions, building on his Net Zero pathway
report launched in January.
The Mayor has announced this record new funding ahead of
publishing his final Budget for the Greater London Authority
(GLA) Group for 2022-23 on Wednesday. The final Budget takes
into account that council tax and business rates returns from
local authorities are higher than were forecast in the Mayor’s
consultation Budget proposals last year.
The Mayor of London and chair of C40 Cities, , said: “I’ve
committed to making London net zero by 2030, faster than any
other comparable city. We are facing a pivotal moment in our
efforts to tackle the triple dangers of toxic air pollution,
climate change and congestion to the health of Londoners and
wider society. I also want London to be a zero-pollution
city and have expanded our Ultra Low Emission Zone to cover all
of inner London so that far fewer children have to grow up
breathing toxic air.
“I have been clear that climate action and our economic recovery
must go hand in hand. This will require record investment and
coordinated action from everyone - cities, businesses, national
governments and communities - to truly turn the tide. That is why
I am leading the way by committing £90 million to help
unlock more than £500 million of private
investment through green bonds to support low carbon projects and
create the green jobs that will help make our target of a
zero-carbon capital a reality by the end of this decade.”
ENDS
Notes to editors
*BEIS Fuel Poverty Statistics 2018: https://www.gov.uk/government/collections/fuel-poverty-statistics
The Mayor’s final Budget is due to be considered by the London
Assembly on 24 February 2022.
The Mayor’s final Budget will be published on Wednesday
at https://www.london.gov.uk/about-us/governance-and-spending/spending-money-wisely/mayors-budget
Funds provided will be paid back over time to the GLA, allowing
the Mayor to revolve funds for the climate emergency and provide
revenue streams that will support a Financing Facility over the
decade, helping to unlock more finance for projects for which
traditional commercial finance is hard to access.
The C40 Steering Committee provides strategic oversight to ensure
C40’s mission and mandate are directly driven by and responsive
to the needs of C40 cities. Led by the Chair, Steering Committee
members represent C40’s geographical diversity and lead on key
organisational focus areas.
