In collaboration with Sustainable Development Capital LLP (SDCL), the Mayor of London, Sadiq Khan, has unveiled an ambitious £100 million investment initiative to advance decarbonisation efforts throughout the capital.
This groundbreaking partnership, known as the London EDGE Fund, is set to span the next four years, focusing on supporting a wide range of sustainable projects. These projects will encompass various aspects of energy efficiency, including implementing cutting-edge building management systems, deploying heat pumps, installing solar panels, and establishing electric vehicle charging infrastructure across the city.
Mayor Sadiq Khan has demonstrated his commitment to this cause by allocating £50 million from City Hall to kickstart the initiative, with SDCL overseeing the fund's management. Notably, SDCL, with a remarkable track record dating back to 2007, has already completed over 50 investments in green energy solutions and currently manages assets exceeding $2 billion.
The overarching objective of this fund is to catalyse more significant private sector investment in low-carbon infrastructure projects throughout London. It is poised to become a pivotal cornerstone in the Mayor's broader London Climate Finance Facility.
Furthermore, the launch of EDGE represents a significant milestone in the global arena, showcasing how private financing and urban centres can join forces to realise decarbonisation objectives. The fund's investments are anticipated to drive the growth of green jobs and foster the development of low-carbon infrastructure.
In his statement during the fund's launch, Mayor Khan reiterated his steadfast commitment to achieving net-zero emissions for London by 2030. He emphasised that this ambitious goal is within reach, provided the public and private sectors collaborate to advance energy efficiency and low-carbon initiatives.
"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," he said. "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 driving the clean energy transition and finding creative ways for private capital to play its whole part in unlocking vital projects 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," he added. "We have a long track record of working with municipalities, too, and I am delighted to work with the Greater London Authority and 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 EDGE fund, London continues to lead by example, and I look forward to seeing the types of projects we can help deliver."
Mark Watts, executive director at the C40 group of cities, described the new fund as "exciting news" and an essential 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," he said.
The announcement comes just days after £19m in government funding was allocated to help several combined authorities unlock private investment to support climate goals through the new Local Net Zero Accelerator.