London Climate Finance Facility (2)

Questions to the Mayor of London – answered on 24th May 2022.

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Photo of Zack Polanski Zack Polanski Green

The January 2022 report you commissioned from Element Energy, Analysis of a Net Zero 2030 Target for Greater London, sets out a need for £75 billion of climate-related investment in London by 2030. What proportion of this funding now has an identified source, and how will you fill any remaining funding gap?

Photo of Sadiq Khan Sadiq Khan Mayor of London

We estimate that it will require £75 billion of infrastructure investment by 2030 to achieve London’s net-zero target. This will need to come from a mix of public and private finance, investment and grant funding. My response to the Element Energy Report notes that a reasonable share of the funding and finance from the UK Government’s existing commitments would equate to £7 billion for London across the decade.  Government must empower and fund local authorities to help them meet the Government’s own own targets and realise the economic opportunities from decarbonising the economy.

Even with greater Government commitment, far greater levels of private investment will be needed to achieve London’s ambitions. That is why I committed to establishing a Financing Facility in London to share risk and reward with the private sector and help catalyse greater levels of investment into climate related projects. In November, I committed £30m to my Mayor’s Energy Efficiency Fund to attract another £150m of private sector funding. And in February I announced a further £90m of GLA funding to support the development and delivery of a net zero project pipeline, supporting a £500m Green Bond to finance those initial projects. These will form the first phase of my Financing Facility for London.