Local Climate Bonds have the potential to raise millions of pounds for green projects in the UK. They are regulated investment 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.
Community Municipal Investments can be issued as regulated bonds and now also as regulated peer to peer loans. Peer to peer loans give the opportunity for the investment to be held in an Innovative Finance ISA, which allows residents to access ISA tax benefits, enabling councils to reach new investors and begin to tap into the £650 billion ISA market.
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 or related municipal investment in the 18 months following COP26.
In November 21, at COP26, the next two councils joined the campaign.
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, or related municipal climate investment
- 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.
Types of Community Municipal Investments
|Local Climate Bonds||Municipal Climate Investments|
|Original pilot investments issued in 2020 by West Berkshire and Warrington structured as a regulated investment bond.||New product available in 2021 following regulatory authorisation for Municipal Investments to be structured as regulated p2p loans.|
|Not eligible for the Innovative Finance ISA||Eligible for the Innovative Finance ISA|
|Bond structure now used for investment terms greater than 5 years in maturity.||P2P loans available for investment terms up to 5 years in maturity.|
|Fixed interest rate competitive with equivalent sources of funding from UK Government (Public Works Loan Board).||Fixed interest rate competitive with equivalent sources of funding from UK Government (Public Works Loan Board).|
|Capital repaid in instalments or at maturity||Capital repaid in instalments or at maturity|
|Fully transferable and tradeable investment||Fully transferable and tradeable investment|
These Councils have already committed to the campaign:
Ross Mackinnon, West Berkshire Council’s Executive Member for Finance and Economic Development
Russ Bowden, leader of Warrington Borough Council
How can local authorities leverage the power of the crowd to finance local green solutions? Hosts Helen Avery and Ryan Jude are joined by Louise Wilson of Abundance Investment to dive into Community Municipal Investments, which allow the general public to invest as little as £5, through their local authority, in green projects such as hybrid battery storage and solar projects. With two local councils in the UK having launched their CMIs this summer, Louise discusses her organisation’s ambitions to scale up the initiative. Helen also asks Louise about a nature climate bond launched in Scotland which helps part fund green spaces and nature.