1. The London Green Fund – a JESSICA Holding Fund
Frank Lee
JESSICA and Investment Funds division, European Investment Bank
Brussels, 29 November 2011

2. The London Green Fund
The London Green Fund (a JESSICA holding fund) established in late 2009 to invest in carbon reduction projects in line with the Climate Change component of the London Plan
Focused on energy efficiency, waste and decentralised energy as the “3 biggest carbon reduction opportunities for London”
Governed by representatives from the Greater London Authority, the Environmental Agency and the London Waste and Recycling Board. The Mayor’s environmental advisor sits on the Investment Board
London Waste &
Recycling Board
£32m
£32m
£50m
London Green Fund
£100m*
Managed by EIB
£35m
£50m
Waste Urban Development Fund
Energy Efficiency
Urban Development Fund
Private finance
Private finance
Equity type investment
Loan type investment
Min £35m
Min £50m
Low risk
High risk
Urban Projects
Urban Projects
* £15m remains available for further investment
Aiming to deliver outputs/impacts on job creation, tons of carbon saved, and minimum energy usage savings 2

3. London Energy Efficiency Fund
A GBP 100m UDF designed to provide low cost loan financing for retrofit and low carbon heating projects in local authority, university, hospital, social housing and other public buildings (either directly or via ESCOs).
Low cost financing in exchange for carbon reduction benefits
Insulation
Building management technologies
As a provider of cheap debt, return expectations for the fund are low, but the private sector finance provider still makes a commercial return, and the fund manager is incentivised to maximise carbon reduction and energy efficiency impacts
A key challenge for London is making the existing public building stock more efficient – this is predominantly government and council buildings, hospitals, and universities but also extends to museums and gardens like Kew who have numerous buildings as well as trees!
How it works:
The public sector building owner identifies a portfolio of buildings they would like to retrofit, sets a target % energy savings e.g. 25% and a payback period e.g. 7 years
They select and ESCO from our RE:FIT supplier framework to carry out the works and to financially guarantee the savings. IF the targeted 25% is not achieved over the 7 years then the ESCO pays the difference
Hence it is a cost neutral means to reduce energy bills and carbon footprint of buildings.
If all municipal buildings, schools, universities and hospitals were retrofitted, it could save 1 million tonnes CO2me seeks to overcome these barriers and accelerate the retrofitting of London’s public sector to deliver on London’s CO2
Cooling equipment
Low carbon heating 3

4. London Energy Efficiency Fund
Amber Infrastructure –Fund Manager
Leading JESSICA fund manager; LEEF, Wales, Scotland
FSA regulated infrastructure investor and manager in PFI/ PPP
Project appraisal and financial structuring
Independent Investment decision making
Arup –Technical Advisor
Project sourcing and pipeline development
Assistance and guidance on accessing LEEF
Technical due diligence pre-investment
Project monitoring post investment
RBS –Funder
Expertise in public sector and green finance
Provider of match funding to public investment
Identification and appraisal of projects
Credit risk assessment, pricing and structuring

5. Investment Strategy Output targets: •Eligible technologies:
£1500/tonneCO2
20% carbon dioxide saving
20% energy saving
•Eligible technologies:
Building energy efficiency
Building integrated low and zero carbon technologies
•Any locations within 33 London Boroughs:
•Borrowers can be public, private or JV entities
•Broad definition of „Public Sector Building‟
•Open choice of procurement and delivery routes; RE:FIT and EPC optional

6. RE:FIT building energy efficiency programme
Energy Performance Contracting approach:
The public sector building owner identifies a portfolio of buildings they would like to retrofit, sets a target percentage energy savings and a payback period
An Energy service companies (ESCos) carry out the works and guarantee the resulting energy savings
This guarantees the payback of the initial investment with the delivery risk transferred to the ESCo. Hence this is a cost neutral means to reduce energy bills and carbon footprint of buildings
RE:FIT
BUILDING ENERGY EFFICIENCY FOR TOMORROW

7. Eligible Expenditures
Typical ECMs
Variable speed pumps and fans
PC shutdown software
Voltage optimisation
Insulation
Draft proofing
Lighting upgrades & controls
Building Management System Controls and strategic review
Heat recovery
Boiler replacements
Combined Heat & Power
Solar thermal
Photovoltaic cells
1E Nightwatchman software for PC auto shutdown 7

8. Contact details: Jessica@eib.org; lee@eib.org
LONDON GREEN FUND
Contact details: