In his 2021 manifesto, the Mayor of London, Sadiq Khan, committed to setting up a new green financing facility [1]. The Mayor’s Green Finance Fund was launched at London Climate Action Week on 29 June 2023 and will lend up to £500m for projects focussed on energy efficiency, clean transport or renewable energy.
The Greater London Authority (GLA) intends to secure the finance for the Green Finance Fund through the issuance of green bonds. However, given the current unfavourable bond market rates, financing will initially come from GLA’s own cash resources.
At the Budget and Performance Committee on 21 September 2023 the GLA’s Interim Chief Finance Officer and Assistant Director Group Finance and Performance confirmed that the GLA’s current cash balances were in the region of £2.5 bn. The Green Finance Fund can lend to the GLA Group, and to Local Authorities, social housing providers, NHS bodies, universities and colleges within any of London's 32 boroughs and the City of London. The fund offers loans with flexible terms at interest rates at, or below, Public Works Loan Board prevailing rates [2].
One of the world’s largest investment funds has raised concerns about the desirability of Green Bonds as an investment option. In 2019, the Japan Government Pension Investment Fund’s Chief Investment Officer stated that Green Bonds are more costly, complicated and cumbersome than other bonds.
Tomorrow, the London Assembly GLA Oversight Committee will meet to examine the Mayor’s Green Finance Fund, particularly the main elements of the Fund including its programme, governance and oversight arrangements. It will examine the types of projects likely to be funded by it and examine the successes and challenges of domestic and international examples of similar schemes.
Guests at the meeting will be:
- Shirley Rodrigues, Deputy Mayor for Environment and Energy, GLA
- Catherine Barber, Assistant Director, Environment and Energy, GLA
- Enver Enver, Acting Chief Finance Officer & Director Group Finance & Performance, GLA
The meeting will take place on Thursday 28 September 2023 from 2pm, in The Chamber at City Hall, Kamal Chunchie Way, London, E16 1ZE.
Media and members of the public are invited to attend.
The meeting can also be viewed LIVE or later via webcast or YouTube.
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Notes to editors
- P25, Sadiq's Manifesto for London
- Green Finance Fund FAQs | London City Hall
- Read the agenda papers.
- As well as investigating issues that matter to Londoners, the London Assembly acts as a check and a balance on the Mayor.
- Emma Best AM, Chairman the GLA Oversight Committee, is available for interview.
- Find out more about the work of the GLA Oversight Committee.
For media enquiries, please contact Kirsty O’Driscoll on 07720 100 737. For out of hours media enquiries, call 020 7983 4000 and ask for the London Assembly duty press officer. Non-media enquiries should be directed to the Public Liaison Unit on 020 7983 4100.