Local Climate
Bonds

Local Climate
Bonds

Local Climate Bonds have the potential to raise millions of pounds for green projects in the UK. They are finance products launched by Councils to access cost-effective funding for specific decarbonisation projects, offering local people an opportunity to invest in their area in a way similar to crowdfunding and to make a return from doing so.

Pioneered as Community Municipal Investments by Abundance Investment in 2020, Local Climate Bonds can play a significant role in financing local authority climate emergency roadmaps.

Example projects range from rooftop solar provision to wind turbine farms, electric vehicle charging infrastructure, retrofitting of buildings and nature-based solutions, such as rewilding.

In July 2021 the Green Finance Institute and Abundance launched the Local Climate Bond campaign,

to raise awareness and support participating councils through the process of release their own Local Climate Bonds in the year of COP26.

In September 2021, we announced the first group of [five] pioneering councils to sign the Local Climate Bond Pledge, committing to issuing a bond in the 18 months following COP26.

As the appetite for place-based finance products grows, it is hoped that other investment platforms will join Abundance in supporting councils to offer Local Climate Bonds.

Join our Local Climate Bond campaign

  • Join the growing list of Local Authorities committed to launching a Local Climate Bond​.
  • Efficiently finance Net Zero projects in your local area, while communicating action, demonstrating leadership and engaging your residents with your climate emergency plans.
  • Work with us to find joint opportunities to showcase the impact of the Local Climate Bonds Campaign in the run up to and during COP26​.​

Illustrative Structure

We are keen to support you in your journey to launching a LCB.
Contact us localclimatebond@gfi.green for more information or to arrange a conversation with our team.

Case studies

The delivery of the bond has been a real success for us and has enabled the Council to not only achieve an engaging way of utilising a cheaper form of borrowing for our net zero ambitions, but we’ve also leveraged in further donations to our successful wildflower verges projects to enhance biodiversity in the local area.

Ross Mackinnon, West Berkshire Council’s Executive Member for Finance and Economic Development

This gives people a fantastic opportunity to make a positive contribution towards a carbon neutral future while providing them with a financial return and deeper engagement with one of Britain’s most environmentally-focused local governments.

Russ Bowden, leader of Warrington Borough Council

Further reading

Financing for Society

Place-based Climate Action Network

UK Climate Change Committee

Local Government Association

Coalition for the Energy Efficiency of Buildings

Financing Wales’ Housing
Decarbonisation

Community Municipal Investments (CMIs)

Our Supporters

The Green Finance Institute is not in any way affiliated with any finance providers listed on this webpage, and makes no statement as to the sustainability of any financial providers or any specific financial products. Finance providers listed on this webpage are listed solely to reflect the fact they are offering services related to the issuance of Local Climate Bonds. The Green Finance Institute does not recommend any particular financial providers or financial product. Other finance providers are available