1. London Green Fund
Supporting Green Infrastructure
Global Energy Basel:The Sustainable Infrastructure
Finance Summit
21-22 February 2012

2. Scale
50 % of the worlds population lives in cities
75% of the worlds energy are consumed by cities
80% of the world’s GHG are emitted by cities
source: Clinton Climate Initiative
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3. London’s Carbon Footprint
8% of total UK CO2 emissions are from London
2006 carbon dioxide emissions from London
Excluding Aviation Including Aviation
Ground Based Ground Based
Transport Domestic Transport Domestic
14%
22% 25%
38%
Industrial 7%
34%
22%
33% Aviation
5% Commercial
Commercial Industrial
44 mt CO2 67 mt CO2
(8% of UK emissions) (11% of UK emissions)
Note: 2006 figures are based on latest available LECI data (for 2003) projected to 2006 based on projections for each sector
Source: London Energy and CO2 Emissions Inventory; DEFRA; TfL Policy Unit Analysis
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4. London is committed to playing its role
Today 2020 2025 2050
European 20-20-20 London Mayor’s Climate UK Climate Change Act
Target (2009) Change Target (2008)
• Reduction in
greenhouse gas
emissions by 60%
below 1990 levels by
2025
• Reduction in greenhouse gas • Reduction in greenhouse gas
emissions by 20% below emissions by 80% below
1990 levels by 2020 1990 levels by 2050.
• 20% increase in renewables
• 20% cut in energy
consumption
The Mayor is committed to London becoming the greenest city in the world
and a city that becomes a world leader in improving the environment.
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5. London Climate Change Programmes
Energy Efficiency Low Carbon
Energy Supply Waste Adaptation
Economy
London Mayoral Strategies
Strategy
London Plan (July 2011)
Climate change, London Waste Economic Spatial and Public
mitigation and Energy Master
Strategies Development Realm Strategy
energy strategy Planning (municipal & business) Strategy
Wide range of projects, including: REFIT, RENEW, Crystal Palace CHP, London Waste and Recycling Board,
Green Enterprise District, East London green Grid
London Green Fund
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6. London Green Fund
The London Green Fund
London
London Waste &
Recycling Board
Development ERDF established in late 2009 to
Agency
invest in carbon reduction
£18m £32m £50m projects in line with the Climate
London Green Fund Change component of the
£100m*
Managed by EIB London Plan
£35m £50m
Private
Waste Urban
Development Fund
Energy Efficiency
Urban Development
Private  Focused on energy efficiency,
finance finance
Fund waste and decentralised energy:
Min Equity type Loan type
Min £50m
the “3 biggest carbon
investment investment
£35m
reduction opportunities for
High risk Urban Projects Urban Projects
Low risk London”
* The remaining £15m will be invested in one or both UDFs in due course
Aiming to deliver on job creation, tons of carbon saved, and financial return
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7. London Green Fund: Place in Finance landscape
Increasing commercial viability
London Green
Grant Commercial
Fund
• High risk, with little • Fluid risk profile and • Clear and
market demand little or no robust market understandable risk
evidence or funding demand evidence profile
security
• Requirement for long • Strong rationale for
• Returns are ‘non- term debt and equity, or commercial funding to
financial’ additional funding be made available
security or guarantees
• Outputs essential to are required • Normal levels of
economic development commercial return that
policy • Returns are longer term commensurate with risk
or do not match of project
• Lack of alternative commercial needs
funders

8. Waste UDF – Foresight Environmental Fund
In line with the Mayor’s municipal waste strategy, and in close collaboration with the
London Waste and Recycling Board…
....the waste UDF will primarily
Bank lending finance, via equity or equity-type
investment, the construction or
Project expansion of:
sponsors • Waste to energy/fuel facilities
Investment (excluding incineration)
Venture capital
programme • Value added re-use, recycling or
trusts £204m reprocessing facilities
Pension funds/ Pari pasu:
private £118m
investors UDF:
London Green Fund £70m
£35m
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9. Model for the future?
Financial
Private
Engineering
Investors
Instrument
Public
Resources
Recycle

10. Case Study:
Bottle to Bottle
Recycling
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11. Why recycle plastic packaging?
Recycling 1 tonne of rigid
plastic packaging saves up to 1.5
tonnes of carbon dioxide
Packaging buyers increasingly
require carbon footprint
reductions
Using 50% recycled content in an
item of packaging reduces its
carbon footprint by 25%
Closed Loop
Recycling

12. Closed Loop at Dagenham
First facility in the World to
produce food-grade rPET and
rHDPE
Processes in excess of 90
tonnes of plastic waste per
day
Technology capable of
closing the packaging loop
Operating since December
2008

13. Closed Loop Recycling Model

14. The process in summary
Operational know-how developed over 2 years (>17,000 hours)
Dry Cleaning
Optical Sorting
Manual sorting
Granulation
Washing
Purification
Closed Loop
Recycling
Quality Assurance

15. UK plastic bottle collection growth
Source: RECOUP - 2010 UK Household Plastics Packaging Collection Survey

16. Other reprocessing drivers
Increased focus on domestic recycling - UK
Bottle collection rates continue to increase
Proposed Defra target for UK bottle collection
by 2020 is 75% (est. 545,000 tonnes)
Landfill tax
Strong and growing demand for food-grade
recycled plastic:
- Coca Cola commitment to 25% rPET content
- UK Milk Roadmap targets 50% recycled
content in all milk bottles by 2020 Closed Loop
Recycling
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17. Planned Expansion
Double processing capacity
Integrated specialist plastics
MRF
Market leader in a growth
sector

18. Contact
Kenroy Quellennec-Reid
Senior Financial Engineering Manager
Greater London Authority
Kenroy.quellennec-reid@london.gov.uk
Tel: +44 (0)207 983 4559
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