London seeks manager for £50m energy efficiency fund

Plans to provide up to £50m in funding to energy efficiency projects across the capital will move a step closer to reality today when the London Development Agency (LDA) begins its search to appoint a management organisation to distribute the new fund.

The LDA said that acting on its behalf, the European Investment Bank (EIB) has issued a call for expressions of interest from organisations interested in establishing and managing the £50m Energy Efficiency Urban Development Fund (UDF).

The UDF is part of a wider, £100m London Green Fund that has been tasked with providing loans and equity investments to climate change infrastructure projects across the capital. It is backed by £50m in European regional development funding, £32m from the LDA and £18m from the London Waste and Recycling Board.

The energy efficiency fund will initially focus on proposals put forward by public and voluntary sectors, as well as social housing projects, but will expand to cover larger-scale, decentralised energy projects.

"The London Green Fund is an exciting, innovative way to promote sustainable economic growth and help London to reach its target of cutting carbon emissions by 60 per cent by 2025," said the mayor of London's environment adviser Martin Powell. "Money from the London Green Fund is effectively recycled, so we get more value and can attract even more investment in London's low-carbon future."

Under the terms of the bidding process, organisations keen to manage the fund have until 1 October to submit expressions of interest with the European Investment Bank.