The capital’s mayor Sadiq Khan has announced a new £100 million fund to accelerate London-wide decarbonisation ventures, in partnership with leading green investor Sustainable Development Capital LLP (SDCL).
The London Efficient & Decentralised Generation of Energy (EDGE) fund will support new low-carbon infrastructure projects across the capital’s 32 boroughs.
Khan has committed £50 million from City Hall funds, to be matched pound for pound from SDCL’s resources. The asset managers will also manage the public-private EDGE project.
The EDGE fund’s remit is to invest in projects which promise significant reductions in energy usage, greenhouse gas emissions or other pollutants across London.
SDCL first floated its EDGE concept in July 2019. Building on the private asset managers’ expertise in low-carbon infrastructure, EGDE will focus on energy efficiency, on-site generation and clean energy. Projects will include installing building management systems, heat pumps, solar panels and EV-charging.
Running until 2027, EDGE will nurture projects accelerating London’s shift to Net Zero. Its backers claim it will set a global example of how private finance and cities can work together to achieve decarbonisation goals by investing in projects promoting green jobs and low-carbon infrastructure.
EDGE monies will take the lead in attracting private investment, acting as a keystone investment for the London Climate Finance Facility, which also includes the Green Finance Fund.
Khan’s faces re-election for a third term in May. His 2021 manifesto promised a finance facility dedicated to the capital. The GLA commissioned advice on methods and structures needed for a London Climate Finance Facility (LCFF).
In 2018 under Khan’s leadership London was the first global city to declare a climate emergency. He wants it to reach Net Zero by 2030, ahead of the UK Government’s 2050 goal. The Mayor’s office cites the EDGE Fund as one of several ways he works with private investors to cut London’s carbon emissions.
Khan declared: “I’m committed to making London Net Zero by 2030. This is achievable, as long as we work closely together to help deliver energy efficient and low carbon projects.
“This new fund will help us unlock additional investment from the private sector and enable us to support many more organisations across the city as they make energy efficient choices.
“London is a world-leading city and this fund will support hundreds of companies as we build a better, cleaner and greener London for all.”
SDCL’s founder and CEO Jonathan Maxwell said: “London is a global hub for servicing the transition we need.
“Since SDCL launched we’ve worked with industrial customers around the world to help improve their economic competitiveness and drive their decarbonisation strategies”.