London is a densely populated city and faces significant challenges in the future as projected economic and population growth exerts further pressure. The Mayor of London has set a target to cut CO2 emissions by 60% by 2025 and targets to reduce waste to landfill and increase energy supplied from decentralised systems. It will cost $63 billion to deliver this target. This level of funding cannot be provided only by the public sector, but imperfect market conditions make projects addressing climate change prohibitively risky investments for the private sector.
Since 2012, the LGF has invested in 16 energy efficiency, district energy and waste infrastructure schemes, including: anaerobic digestion, energy-from-waste and plastics reprocessing facilities; energy conservation measures such as boiler replacement photovoltaic cells, waste heat recovery, lighting upgrades and controls and wall insulation. These schemes are at different stages of implementation and once all are completed the combined results will be:
The LGF is part of a comprehensive climate change action plan put in place by the Mayor of London and will contribute to key environmental targets in this plan including:
In addition to the environmental goals, this funding approach can deliver a number of wider socio-economic benefits (e.g. green jobs, reducing fuel poverty and stimulating complementary regeneration activities) and encourage the development of a low carbon economy (e.g. by creating/increasing specialisms in areas such finance and consultancy).
The LGF is expected to achieve a number of wider socioeconomic impacts such as: