The London Green Fund

JESSICA (Joint European Support for Sustainable Investment in City Areas) is an initiative developed by the European Commission (EC) and the European Investment Bank (EIB) in collaboration with the Council of Europe Development Bank, to enable sustainable regeneration activity to be delivered in Europe’s urban areas.

JESSICA allows EU Member States to make contributions from their Structural Fund Programmes, along with funding from other public and/or private sources, to urban development funds (UDFs). The UDFs then invest these monies, in the form of equity, loan and/or guarantee - not grants - in urban development projects. Returns can be reinvested in other urban development projects.

The London Green Fund

The London Green Fund (LGF) is a £120 million fund set up to invest in schemes that cut London’s carbon emission. The fund was launched in October 2009 by the Mayor of London and the European Commissioner for Regional Policy - the first JESSICA Holding fund in the UK.

It is made up of £60 million from the London ERDF Programme, £32 million from the Greater London Authority (GLA), £18 million from the London Waste and Recycling Board (LWARB), and £10 million from private funding at project level. The European Investment Bank manages the LGF on behalf of the GLA and LWARB.

The LGF provides funding for three UDFs that invest directly in waste, energy efficiency, decentralised energy and social housing projects. They are ‘revolving’ investment funds, where monies invested in one project are repaid and then reinvested in other projects. As of 31st December 2015, the Fund had committed all the funds allocated and invested in 18 projects valued over £500 million.

Waste UDF

The waste UDF, which is known as the Foresight Environmental Fund, was established in March 2011 and £35 million was allocated to it from the LGF. It is managed by Foresight Group LLP which invested in eight projects:

For more information, please contact:

Nigel Aitchison

Foresight Group LLP

Environmental Infrastructure Team

Tel: 01732 471 851

Email: [email protected]


Energy Efficiency UDF

The Energy Efficiency UDF, called London Energy Efficiency Fund (LEEF), was set up in August 2011 with £60 million allocated from the LGF. It is managed by Amber Infrastructure Ltd, who are responsible for securing additional project level funding and deciding which projects are funded. LEEF has provided debt financing to support energy efficiency measures in 72 buildings across the following projects:

  •  Tate Modern: retrofit and installation of energy saving measures, including waste heat recovery from the substation,
  • LB Croydon : energy efficiency measures in a number of the Council’s properties, including 50 primary schools and a 1960s art centre,
  • Salters Hall: energy efficiency measures across two sites,
  • St George’s : energy efficiency measures across hospital properties and installation of Combined Heat and Power
  • LB Hackney: installation of communal heating systems for ten tower blocks
  • Greenwich Peninsula: construction of an energy centre with a gas CHP and boiler, which will provide low carbon energy for properties on the peninsular

LEEF has also provided finance for a district heating network - Lee Valley Heat Network – that will provide heating & hot water to thousands of homes & businesses in the Lee Valley.

For more information,

please contact:

Leo Bedford

Amber Infrastructure Ltd

Tel: 020 7939 0550

Email: [email protected]


Greener Social Housing UDF

The Housing Finance Corporation Limited (THFC) was allocated £12m from the LGF in March 2013. This UDF has invested in three Registered Providers of social housing - Gallions Housing Association, The Origin and A2Dominion - to support the refurbishment of over 2,500 properties to make them more environmentally friendly.

The retrofitting measures supported include external and internal solid wall insulation; boiler replacement; installation of air source heat pumps; and upgrading to tripe glazed windows.

For more information, please contact:

Fenella Edge

The Housing Finance Corporation Ltd

Tel: 020 7337 9923

Email: [email protected]


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