Green Finance Fund to lend £500m to energy and transportation projects

Sadiq Khan choose London Climate Action Week to announce a tranche of funding which will provide loans of between £1m and £75m to projects that will deliver benefits in energy efficiency, clean transportation or renewable energy.

The loans will be available with flexible terms (up to 25 years) and with a low rate of  interest. Groups eligible for the loans are GLA Group, London local authorities, social housing providers, NHS bodies, universities, and colleges.

The London Stadium has already secured funding to install solar panels on the roof of the stadium, which is expected to generate around 10% of the stadium’s current electricity usage and save 270 tonnes of CO2 a year, the equivalent of making 70 homes carbon neutral. 

£34.2 million from the fund is also going to Transport for London to finance various projects including the installation of new LED lights at Underground stations, replacement LED streetlights, new solar panels at Tube depots and energy efficient improvements to TfL buildings across the city. These projects are estimated to save 8,900 tonnes of CO2 each year. 

 The Mayor of London Sadiq Khan, said: ‘I’m committed to making London net zero by 2030, a target that is achievable if we make bold decisions together now. That is why I’m pleased to announce the Green Finance Fund will lend up to £500 million of investment to low carbon, green partnership projects. 

‘We’ve already allocated funding to some exciting projects around London and I’m looking forward to seeing what other green initiatives we can support. The fund is open for applications now so don’t delay. By working closely together on energy efficiency projects we can help build a better London for everyone, a cleaner and greener city for all.’

Dr Rhian-Mari Thomas OBE, Chief Executive Officer, Green Finance Institute, said: ‘Private capital is essential to meeting London’s net zero by 2030 ambition, which will require a £75bn investment. The GFI was pleased to leverage its expertise in advising the GLA on the design of the London Climate Finance Facility to ensure the implementation of a scalable solution. This facility commits hundreds of millions of investment in climate infrastructure across London’s boroughs, and will mobilise billions more as the structure of the facility evolves over time.’