London Mayor announces £90 million towards new green bonds

Photo by Tomas Anton Escobar on Unsplash

Earlier this week Sadiq Khan, the Mayor of London, outlined proposals to secure more than £500 million for investing in climate action by issuing green bonds.

The Mayor is committing £90 million of GLA funds to support the ambition:

  • £4 million to develop high-impact green investment opportunities for the public and private sector, and
  • £86 million to support a substantial GLA Green Bond programme, financing direct decarbonisation investment by the GLA Group and its strategic partners as part of the Mayor’s Green Financing Facility.

The Mayor of London commented on the announcement: “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 to the health of Londoners and wider society.

“I also want London to be 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.

“I have been clear that climate action and our economic recovery must go hand in hand. This will require record investment and coordinated action from everyone – cities, businesses, national governments and communities – to truly turn the tide.

“That is why I am leading the way by committing £90 million to help unlock more than £500 million of private investment through green bonds to support low carbon projects and create the green jobs that will help make our target of a zero-carbon capital a reality by the end of this decade.”

This investment will support projects making social housing and public buildings energy efficient, as well as clean, local energy projects providing solar PV, heat pumps and district heating across London.

The Mayor’s proposals are estimated to support more than one million tonnes of carbon savings over the lifetime of the projects and lower energy use by 328,638 MWh a year, the equivalent to the energy used by nearly 85,000 homes in a year, while supporting jobs in London.

The Mayor’s final Budget is due to be considered by the London Assembly on 24 February 2022.