Mayor announces new £100 million fund to accelerate London-wide decarbonisation, in partnership with leading UK investor

New London Efficient and Decentralised Generation of Energy Fund will support new low-carbon infrastructure projects across London
Sustainable Development Capital LLP (SDCL) to partner with City Hall to manage the Fund

The Mayor of London, Sadiq Khan has announced a new £100 million fund to support decarbonisation projects across London in partnership with Sustainable Development Capital LLP (SDCL).

The London Efficient and Decentralised Generation of Energy Fund partnership will unlock additional investment from the private sector and enable many more organisations across the capital to make energy efficient choices. Sadiq has committed £50 million from City Hall which is to be matched by funds managed by SDCL, who will also manage the Fund.

London Efficient and Decentralised Generation of Energy Fund will invest in projects that have the capacity to achieve significant reductions in energy usage, greenhouse gas emissions or other pollutants across London. Building on SDCL’s expertise in low-carbon infrastructure, the Fund will focus on energy efficiency, on-site generation and clean energy solutions – areas key to helping London achieve net zero by 2030 – like installing building management systems, heat pumps, solar panels, and electric vehicle charging.

The London Efficient and Decentralised Generation of Energy Fund will play a vital role in increasing the level of private investment in low-carbon infrastructure in London, acting as a keystone investment for the London Climate Finance Facility, which also includes the Green Finance Fund. The London Efficient and Decentralised Generation of Energy Fund will fund numerous projects over the course of the next four years, accelerating London’s shift to net zero and solidifying London’s leading position as a city delivering climate action. The Fund will set a global example of how private finance and cities can work together to achieve decarbonisation goals by investing in projects that will promote green jobs and low-carbon infrastructure.

London was the first global city to declare a climate emergency in 2018 and Sadiq has set an ambitious target for London to reach net zero by 2030, ahead of the UK Government’s 2050 goal, to mitigate the most devastating impacts of climate change. The London Efficient and Decentralised Generation of Energy Fund is one of the many ways Sadiq is working closely with the private sector to help reduce London’s carbon emissions.

The Mayor of London, Sadiq Khan, said: “I’m committed to making London net zero by 2030 and 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.”

Jonathan Maxwell, Founder and CEO of SDCL, said: “London is a global hub for servicing the transition and finding creative ways for private capital to play its full part in unlocking projects that are vital to get to net zero. Since SDCL launched we’ve worked with industrial customers around the world to help improve their economic competitiveness and drive their decarbonisation strategies. We’ve a long track record of working with municipalities too and I am delighted to work with the GLA and the Mayor Sadiq Khan on this latest initiative. As the C40 has made clear, cities are vital agents of change when it comes to net zero. With the London Efficient and Decentralised Generation of Energy Fund, London continues to lead by example and I look forward to seeing the types of projects we can help to deliver.”

Mark Watts, Executive Director at C40 said: “This new fund is exciting news and an important step towards accelerating the delivery of London’s carbon targets. By reducing the demand for energy and increasing the uptake of clean energy, this initiative will contribute significantly to phasing out the use of fossil fuels in the city – reducing emissions and improving air quality.”

Sustainable Development Capital LLP (SDCL)

Established in 2007, Sustainable Development Capital LLP (“SDCL”) is a specialist investment firm with a proven track record of financing and developing clean energy, energy efficiency and decentralised energy infrastructure projects in the UK, Continental Europe, North America, and Asia. SDCL was founded to facilitate investment into environmental infrastructure markets and has since launched several funds pioneering energy efficiency solutions. SDCL has raised several innovative energy efficiency investment vehicles, including the first such vehicle listed on the LSE. SDCL has also completed more than 50 green energy solution investments since 2007 and has over $2 billion of AUM. For more information, visit www.sdclgroup.com

About the London Climate Finance Facility

The Mayor’s 2021 manifesto committed to establish a finance facility to further his environmental aims. The GLA commissioned the Green Finance Institute (GFI) to advise on the approach and structures for a London Climate Finance Facility (LCFF).

The Green Finance Institute outlined options to create a London Climate Finance Facility. This includes the Green Finance Fund, which enables local authorities, social housing providers, NHS bodies, universities and colleges to access funding for their green projects and the London Efficient and Decentralised Generation of Energy Fund which will support any London organisation aiming to reduce their carbon footprint.

About the Green Finance Fund

The Mayor’s Green Finance Fund was launched at London Climate Action Week 2023 and will lend up to £500m to projects that help London meet its net zero ambitions. The aim is to accelerate decarbonisation by lowering the cost of borrowing for eligible organisations.