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The London Green Fund (a JESSICA holding fund) established in late 2009 to invest in carbon reduction projects in line with the Climate Change component of the London Plan

Focused on energy efficiency, waste and decentralised energy as the “3 biggest carbon reduction opportunities for London”

Governed by representatives from the Greater London Authority, the Environmental Agency and the London Waste and Recycling Board. The Mayor’s environmental advisor sits on the Investment Board

Energy EfficiencyUrban Development

Fund

£35m

ERDF

London Green FundLondon Green Fund£100m*

Managed by EIB

London Waste &Recycling Board

London Development

Agency

£50m

Private finance

£50m £32m£18m

* The remaining £15m may, as an option, be invested in one or both UDFs in due course

Urban Projects Urban Projects

The London Green FundThe London Green Fund

Private finance

Waste Urban Development Fund

Equity type investment

Loan type investment

Low riskHigh risk

Min £50mMin £35m

Aiming to deliver outputs/impacts on job creation, tons of carbon saved, and minimum energy usage savings

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....the waste UDF will primarily finance, via equity or equity-type investment, the construction or expansion of:• Waste to energy/fuel facilities (excluding incineration)• Value added re-use, recycling or reprocessing facilities

The Waste UDF – Foresight Environmental FundThe Waste UDF – Foresight Environmental Fund

Bank lending

Project sponsors

Venture capital trusts

Pension funds/private investors

ERDF £18m

London Green FundLondon Green FundUDF: £70m

Pari pasu: £118m

Investment programme £204m

In line with the Mayor’s municipal waste strategy, and in close collaboration with the London Waste and Recycling Board…

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• As a provider of cheap debt, return expectations for the fund are low, but the private sector finance provider still makes a commercial return, and the fund manager the fund manager has a significant component of fees linked has a significant component of fees linked to maximising carbon reduction and energy to maximising carbon reduction and energy efficiency impactsefficiency impacts

InsulationBuilding management technologies

Cooling equipment Low carbon heating

• A GBP 100m Urban Development Fund, managed by Amber Infrastructure, with co-financing from Royal Bank of Scotland, blended with London Green Fund monies to provide cheap loan financing for retrofit and low carbon heating projects in local cheap loan financing for retrofit and low carbon heating projects in local authority, university, hospital, social housing and other public buildingsauthority, university, hospital, social housing and other public buildings.

The EE UDF – London Energy Efficiency FundThe EE UDF – London Energy Efficiency Fund

• EIB will be providing low cost funding EIB will be providing low cost funding to RBS to improve benefits to the public sector end users. The EIB managed ELENA ELENA facility facility is providing technical assistance for project preparation

Low cost financing in exchange for carbon reduction benefits

Leveraging other EIB products

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Contact Contact

JESSICA and Investment FundsEuropean Investment Bank

98-100 Bvd Konrad Adenauer, L-2950 Luxembourg

www.eib.org/jessica

Frank LeeHead of holding funds and advisory, Northern Europe

Tel: +352 43 79 83062Mob: + 352 621 459 249

lee@eib.org