Local net zero investment: Financing local net zero projects

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.

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.