Local net zero investment: Financing local net zero projects
Local authorities have a critical role in delivering the UK’s transition to net zero by 2050.
According to the UK Government’s Net Zero Strategy, 82% of all UK greenhouse gas emissions are within the scope of influence of local authorities, underscoring their importance in ending the UK’s contribution to climate change.
The investment needed to finance this nationwide transformation, estimated at £1.4 trillion by the Climate Change Committee, will require private capital alongside public finance. But what are the issues that will help or hinder the flow of investment needed?
As part of the Prospering from the Energy Revolution programme, Innovate UK has commissioned two work packages to investigate progress, challenges and opportunities for private investment in local net zero projects, including smart local energy systems.
The first was led by the Green Finance Institute (GFI). During 2022 the GFI held round-table events and interviews with local authorities and other stakeholders to identify the challenges facing local net zero success. The findings from these, and from desktop research, highlight the short- and medium-term challenges that local authorities are experiencing. This report is designed to help policymakers, local authorities and investors find some of the answers to unlocking the finance that will be needed on the local net zero journey.
Accelerating local net zero investment
The second piece of work, on local net zero investment, was led by PwC. It considers the private capital required for local net zero projects and how to unlock it. Explore the findings at the link below.
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Related programmes
Enabling smart local energy systems
We live, work and travel in regions, cites, towns and communities, but energy systems are still very centralised. UKRI’s Prospering from the Energy Revolution programme explored the potential of smart local energy systems and place-based approaches. Discover learnings and insights from the £104m, five-year programme.
Net Zero Living
Innovate UK’s £60 million, three-year Net Zero Living programme aims to help regional authorities and businesses accelerate the transition to net zero, across the UK and internationally.