Karli Edmondson
Posted: Tuesday, September 7, 2010 3:44 pm

New funding for energy efficiency schemes in London has moved a step closer as the London Development Agency (LDA) starts to procure the manager for a £50 million fund dedicated to energy efficiency.  

On the LDA's behalf, the European Investment Bank (EIB) has today issued a call for expressions of interest from organisations interested in establishing and managing the £50 million Energy Efficiency Urban Development Fund (UDF) - part of the £100 million London Green Fund.

The Energy Efficiency UDF will invest initially in energy efficiency in public and voluntary sector buildings and social housing. It will be designed to allow its remit to expand in future to cover larger-scale decentralised energy projects.

The London Green Fund will make repayable loan and equity investments in climate change infrastructure projects across London.  When these investments are repaid, they will be reinvested in the Fund.  The Fund is one of the LDA initiatives that will help reach the Mayor's target of cutting London's carbon emissions by 60 per cent by 2025. 

The London Green Fund is made up of contributions of £50 million from the London European Regional Development Fund Programme, £32 million from the LDA and £18 million from the London Waste and Recycling Board.

Mayor of London's environment advisor Martin Powell said:

"The London Green Fund is an exciting innovative way to promote sustainable economic growth and help London to reach its target of cutting carbon emissions by sixty per cent by 2025. Money from the London Green Fund is effectively recycled, so we get more value and can attract even more investment in London's low carbon future.  This will help London become the world's leading low carbon big city."

The London Green Fund is supported through the JESSICA (Joint European Support for Sustainable Investment in City Areas) initiative - a financial instrument that promotes sustainable regeneration in Europe's cities, as part of London's 2007-13 European Regional Development Fund programme.

The European Investment Bank's Vice President Simon Brooks said:

"EIB, as the London Green Fund manager, is delighted to be launching this second call for expressions of interest. The London Green Fund's role as a strategic, policy-led investor in London's climate action agenda represents an exciting development and a scalable business model for efficiently leveraging European Structural Funds throughout the UK using the JESSICA initiative."