Arup will act as technical advisor to The Amber Green Consortium in managing the London Energy Efficiency Fund (LEEF) on behalf of the Mayor’s London Green Fund.
The consortium is led by Amber Infrastructure Limited (Amber), the leading sponsor and manager of social and economic infrastructure projects. Arup will act as technical advisor to the Amber Green Consortium, with RBS as funder.
LEEF will invest up to £100m in energy efficient projects which are aimed at helping London’s public sector reduce its carbon emissions, which currently amount to 4m tonnes per year, or 10% of the capital’s overall carbon footprint.
“Arup is proud to be a key advisor for the first energy efficiency fund in the UK. The London Energy Efficiency Fund is an exciting project and one which aligns with Arup’s vision to accelerate building retrofit and contribute to a low carbon economy.”
– Malcolm Ball, Director at Arup
Details of the launch event and how to apply are available at www.leef.co.uk.
London Green Fund (LGF)
The LGF was established by the European Investment Bank (EIB) on behalf of the London Development Agency and the London Waste and Recycling Board. LEEF is the second Urban Development Fund established by the LGF for London and forms an integral part of the Mayor of London Boris Johnson’s vision to radically reduce the capital’s carbon emissions by 2020.
The consortium will use its combined expertise to target and invest the fund in a range of public sector building projects in the capital which are being upgraded with energy efficient retrofit measures - including boiler replacements, ventilation upgrades, building fabric improvements, and efficient lighting, as well as innovations such as controls and smart meters.
The scale of the energy efficiency retrofit market in public sector buildings is significant in the UK, with London alone totalling £5.6bn. Buildings in the UK have the potential to save up to 50% of their energy use and reducing carbon emissions from public sector buildings in the UK could lead to a financial benefit of £4.5bn by 2020.
LEEF funding
LEEF is funded through £50m of public investment from the European Regional Development Fund, London Development Agency and London Waste and Recycling Board and up to £50m from RBS, and aims to be fully invested by 2015. The closed-ended fund will be managed and operated by the consortium for 10 years.
Investment may be delivered through the existing Greater London Authority (GLA) RE:FIT programme, but this is not mandatory and a wide range of bodies and projects are eligible for LEEF funding.
The initiative forms part of the European Union’s Joint European Support for Sustainable Investment in City Areas (JESSICA) initiative, which tackles the public sector’s limited access to capital by using private sector expertise and funding to achieve key urban development goals and long-term savings.
Amber
Amber, which already manages JESSICA in Wales through the £55m Regeneration Investment Fund for Wales, is currently shortlisted for its third JESSICA scheme, the £48m Scottish Urban Development Fund, making Amber a UK market leader in investing public funds for a financial and socio-economic return.
Leo Bedford, Programme Director for Amber, commented; “We’re delighted to be working alongside our consortium partners on a project that will be pivotal for London’s 2020 carbon emissions programme. Our unrivalled public sector partnerships and experience in managing a JESSICA fund provides us with a unique platform to ensure both the long-term energy efficiency goals and public saving objectives are met.”
RBS
Chris Fallis Head of Public Sector, Structured Finance for RBS, said; “RBS are delighted to be supporting Amber Infrastructure with the London Energy Efficiency Fund, which will allow public sector bodies within London to access financing for energy efficiency programmes, facilitating a reduction of the carbon footprint across the capital.
RBS has extensive public sector experience and coupled with Amber's fund and project management experience and Arup’s technical expertise, provides a unique partnership to deliver this vital programme.”