Local authorities and the low carbon financing challenge Base London 11 th July 2013

Local authority and the low carbon economy

Leeds City Region; mini-Stern Sector £b Total £4.9b Study carried out in 2012 to assess viability of delivering low carbon programme to Leeds City Region Investment required to deliver 13% carbon savings by 2022 over 1990 Positive NPV with cost of capital at 8% Source; Centre for Low Carbon Futures

Local authorities enabling of low carbon finance Aspiration leadership De-risking Jobs Fuel Poverty CO 2 reduction targets Landfill reduction Energy security Own estate contracts Social housing Brand Marketing support Planning Waste contracts Power purchasing agreements Convening power Project initiation Procurement Local initiatives (LEPs etc) Community leadership Scale Local authorities Revenue accounts Grants – UK and EU Allowable solutions Credit enhancements Prudential borrowing Enabling finance

Funding low carbon activity at a time of budget cuts Cost centreRevenue earner Historical position Emerging position LA fundedAccess grant funding DECC fundsEnergy company obligations Regular income Energy Savings Energy generated Project fee income

Delivery model Delivery Unit Pipeline encouragement Local Authority Private sector Finance Other public sector Investment & Return Fee Investment returns Delivery model and private sector partners

Financing and delivery model Installation companies Carillion GD Fund Green Deal Payments Green Deal payments Energy Companies BCC Investment and return Marketing Assessment Project Planning Development Directorate Leadership & encouragement