Finance innovation for funding net zero
Bristol is pushing towards its net zero goals, and we have many technical solutions to decarbonise the city’s energy, homes and transport. However, whilst the technology is available, there are still barriers to implementing it.
One major barrier is funding. It is estimated that decarbonising Bristol will cost £7.8bn and it is currently unclear how these funds will be leveraged.
Developing new financial mechanisms will be crucial to achieving net zero and careful consideration of how these are deployed has the potential to create new wealth in our communities – supporting a ‘just transition’ – and to avoid further entrenching historical inequalities in the city.
Getting this right could help to support local supply chains, create new opportunities for local employment, secure social and environmental benefits in Bristol’s communities, as well as extending communal use and ownership of new assets through models such as social enterprise.
The Net Zero Finance Co-Innovation Lab project, led by Bristol City Council, aims to explore how new financial mechanisms can remove funding as a barrier to net zero. Partners Bristol Climate & Nature Partnership, BBRC and Abundance Ltd are supporting the development of a series of financial vehicles and approaches to accelerate decarbonisation of the city, facilitating investment and supporting zero carbon business growth.
The project aims to develop financial mechanisms that can become self-sustaining and mutually supportive, enabling a fast and fair transition to net zero. These elements are vital to a just transition, where local communities benefit from the move to net zero, instead of being further disadvantaged by it.
Building on our Community Climate Action project, Bristol Climate & Nature Partnership is working directly with 8 community organisations and social enterprise advisor Tom Beale to create a suite of project proposals. These will provide clear examples of the potential for the VCSE sector to contribute to net zero delivery via community-led climate action. We will continue to share updates as the project progresses.
Meanwhile, the project recently celebrated a significant milestone as a major new Net Zero impact fund designed and developed by BBRC was officially approved by the Mayoral Combined Authority.
“We’re delighted the West of England Mayoral Combined Authority has taken the decision to initiate this £100m fund.
“Whilst the West of England has made progress on delivery of Net Zero and nature recovery, the scale of investment required to meet its ambitions and tackle the climate and nature emergencies needs bold action to accelerate it.
“That means introducing new delivery models with a greater focus on private sector investment and alternative funding approaches. BBRC has a proven and credible track record of delivery, attracting vital private sector investment to the region that it otherwise wouldn’t get.”
Ed Rowberry, Chief Executive of BBRC
Investors who want to generate meaningful social and environmental impact can find out more by contacting BBRC.
Bristol is the only UK city in the Horizon Europe funded cohort, alongside cities in Sweden, Finland, France, Ukraine and Ireland. Pilot cities will be sharing their challenges and solutions with their peers, increasing the value of the learning in each city.
The Finance Co-innovation Lab is part of Bristol’s wider work to develop innovative decarbonisation solutions, such as Mission Net Zero and Bristol City Leap.
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