Mayor Of London Announces £90 Million Towards New Green Bonds
Thilini Bandara
February 16, 2022
The Mayor of London, Sadiq Khan, has unveiled ambitious proposals to secure over £500 million in funding for climate action through the issuance of green bonds.
These plans are set to accelerate London’s transition towards net-zero, addressing both the climate emergency and the growing burden of rising energy costs. As part of this effort, the Mayor has committed a record £90 million from the Greater London Authority (GLA) to drive this initiative forward. This includes £4 million dedicated to the development of high-impact green investment opportunities for both the public and private sectors, and £86 million allocated to a significant GLA Green Bond programme. This programme will directly finance decarbonisation projects led by the GLA Group and its strategic partners, under the Mayor’s Green Financing Facility.
The proposed investment will support energy efficiency upgrades for social housing and public buildings, as well as the expansion of clean, local energy initiatives across London. These projects will include the deployment of solar photovoltaic systems, heat pumps, and district heating networks. By committing an initial £90 million, the Mayor aims to unlock more than £500 million in total funding for these critical low-carbon initiatives.
Investments in social housing will also address inequalities that have been further exposed by the pandemic and the ongoing cost of living crisis. London continues to face some of the highest rates of fuel poverty in the United Kingdom, with approximately one in nine* households unable to afford adequate heating. Low-carbon heating solutions will help reduce energy bills and improve the living conditions of thousands of Londoners. These projects will additionally support the city’s green economy by equipping Londoners with the skills needed for sustainable jobs, contributing to a cleaner, greener, and more equitable recovery in the post-COVID era.
The Mayor’s proposals are expected to deliver substantial environmental and social benefits, including more than one million tonnes of carbon savings over the lifetime of the supported projects. Annual energy consumption is projected to decrease by approximately 328,638 MWh, equivalent to the annual energy usage of nearly 85,000 homes. The initiative will also support local employment and economic growth in London.
The announcement of this landmark investment comes ahead of the Mayor’s final Budget for the GLA Group for 2022–23, which is scheduled for release on Wednesday. The Budget reflects higher-than-anticipated returns from council tax and business rates, as compared to forecasts from the Mayor’s earlier consultation proposals.
Speaking on the initiative, Sadiq Khan, Mayor of London and Chair of C40 Cities, stated: “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, all of which threaten the health of Londoners and wider society. I also want London to become 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.”
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