2 September 2011: The Mayor announced today that “Hundreds of public buildings in London including schools, libraries and hospitals are set to get a green makeover, with low cost loans from a new £100 million fund”. The Mayor has agreed a £50 million contribution from the London Green Fund to set up the new London Energy Efficiency Fund (LEEF). LEEF will be led by Amber Infrastructure Limited and the press release states that “Amber has already expanded the fund’s value with upfront commitments for £50 million from RBS and the company is expected to leverage in further amounts over the life of the project.”
Further information provided at www.leef.co.uk sets out that eligible projects will aim to deliver:
- Energy Savings Ratio of at least 20% compared to conditions prior to investment
- Each £1500 LEEF Investment should achieve a reduction of at least one tonne CO2; and that
- The pricing of LEEF’s loans will be “dependent on the credit rating of the borrowing entity and the amount and level of security provided; the aim is to be able to structure the transaction so that a highly competitive rate can be offered.”
A list of eligible technologies that qualify for funding are also set out there. A brochure posted at the LEEF website also makes some interesting comparisons to how the fund will operate in comparison to the existing funding made available to public sector organisations through the Carbon Trust’s Salix programme. Further information on RE:FIT can be found here.