London Climate Finance Facility

It's estimated that achieving London's net-zero target by 2030 will require in excess of £75bn of infrastructure investments. This will need to come from a mix of public and private finance, investment and grant funding. Even with greater government commitment, far higher levels of private investment will be needed to achieve London’s ambitions. 

Therefore, in 2023 the Mayor extended his programmes and launched the London Climate Finance Facility (LCFF). Its aims are:

1. To unlock billions of long-term, flexible, private finance to support the decarbonisation of London's buildings, energy and transport systems, thereby tackling the triple dangers of toxic air pollution, climate change and congestion.
2. To accelerate significantly the development and delivery of climate and environmental projects, working with strategic partners. 
3. To build on London's existing financing capabilities to secure investment for London and strengthen its competitiveness.

The LCFF currently support these aims through a number of funds and grant programmes.

The Mayor's Net Zero Carbon Accelerator offers organisations project development support, taking projects from ideation to finance ready.

Finance-ready projects can apply for finance through either the Green Finance Fund (GFF) or the London EDGE fund. The GFF offers flexible debt finance at low rates and the London EDGE fund offers bespoke equity finance for large projects. 

The LCFF offers: 

1. Finance for decarbonisation projects 
2. Project development support 
3. Procurement framework

Read more about the unique programmes below.

The GLA commissioned the Green Finance Institute (GFI) to advise on the approach and structures for a LCFF and in June 2023 the Mayor published his response and launched the facility.