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London Low Carbon Capital

Jan 17, 2015



The London Development Agency have set out a comprehensive plan to create a Low Carbon Capital.

The strategic plan lays out the key short, medium and
long-term initiatives that will build on London’s existing strengths and areas of advantage.

Investors will find
themselves spoilt for choice in the range of ‘green’ investment opportunities that are on offer, making for a prosperous and bright future for Londoners.


2. Proposals for the Low Carbon Capital have been developed in partnership with London Councils, and with the support of Ernst and Young LLP. The Low Carbon Capital report will be available on the London Development Agency website ( Email us on [email protected] if you would like to get involved, or if you have comments and further suggestions on realising the vision of London as a global leader of the low carbon economy. 3. fOREWORd A thriving low carbonTackling climate change now is critical for the welfare of our planet. It will also be keyto solving another vital issue: the need to renew the health of our economy. We are economy coupled with a drivecommitted to placing London at the forefront of the national and global transition to for energy efficiency will a more sustainable future to help us secure this recovery. create jobs, demand for new skills and opportunities for The capitals existing track record as a global economic centre proves that Londonhas the assets and expertise to be a leading provider of finance, business services, Londons businesses. and innovation within the emerging low carbon economy. To demonstrate leadership and ensure Londons sustainable future, the Mayor of London,Boris Johnson is committed to challenging carbon reduction targets. We estimate thatit will cost around 40 billion investment and create a workforce of 225,000 people toachieve these ambitious goals. The London Development Agency is delivering programmes to attract private sectorinvestment and enable successful businesses to thrive in a sustainable manner.A thriving low carbon economy coupled with a drive for energy efficiency will createjobs, demand for new skills and opportunities for Londons businesses. We have set out a robust strategic plan which lays out the key short, medium andlong-term initiatives that will build on Londons existing strengths and areas of advantagein capturing and developing the nascent low carbon economy. Investors will findthemselves spoilt for choice in the range of green investment opportunities that areon offer, making for a prosperous and bright future for Londoners. We believe London is at the forefront of the technological and economic changes thatwill define the next century. Our comprehensive plan to create a Low Carbon Capitalshows us how we can capture the economic prize.Isabel DedringMayors Advisor on the EnvironmentMay 2010The Low Carbon Capital 1 4. A LOW CARBON fuTuRE CAPTuRINg THE mARkET, CuTTINg EmIssIONs In July 2009 the G8* agreedRebalancing the global economy towards a more sustainable future will help us addressboth the economic crisis and the need to become more energy smart to climate change. to cut global emissions by 80%Several leading economies have announced significant economic stimulus packages that by 2050. The collective cost incorporate a low carbon focus. is estimated at US$3 trillion. Explosive growth in the greenWe face significant challenges over the coming decades, to maintain secure and affordableenergy supplies, to meet our renewable energy goals and to meet climate change targets. sector will generate millions of jobs globally.In response to this, the green economy is expected to grow strongly driven bynecessity, regulation and consumer preference. By taking action now we will meet legallybinding energy and environmental targets, deliver a greener London for residents andtake our place as a major competitive force in the global low carbon market. Despite the efforts of the UN and other international and regional institutions, nearly 90% of the funds needed to address global warming will derive from the private sector. United Nations, General Assembly President* The G8 is the forum ofthe eight most industrialisednations in the world 2 The Low Carbon Capital 5. LOW CARBON CAPITAL sEIzINg THE gREEN OPPORTuNITy fOR LONdON The Mayor plans to establish To realise the full benefits of the low carbon economy London must undergo a transitionaway from the use of carbon intensive fuels towards a more energy efficient future. London as a world-leadingThis shift presents a significant economic opportunity for businesses, inward investors low carbon capital.and Londoners. We must ensure fertile conditions are in place to generate jobs, fosterknowledge and create wealth for London and the UK economy through nurturing and 40bnbuilding upon Londons strengths in the low carbon economy. London could attractbetween 40bn to 140bn of investment spend in the low carbon economy and createa green workforce of over 200,000 people over the coming decades. The Mayor of London has set some of the worlds most challenging carbon reductiontargets, the delivery of which will place London at the forefront of the national and global thE InvEstmEnt oPPortunItYtransition to a more sustainable future. 200The strategic action being taken by the Mayor and Londons public sector is laying the 000+foundations for new low carbon markets. However, only by galvanising private sectorsupport and investment will we create a flourishing green sector and move towards,a low carbon future. workforCEThe Low Carbon Capital 3 6. BuILdINg ON LONdONs sTRENgTHsPROmOTINg THE RIgHT INITIATIvEs We have identified Londons Londons areas of strength will drive its low carbon economy success and comparative advantage internationally. strengths and competitive advantages in leading the low Financial services: London, one of the worlds leading financial centres, is extremely carbon economy. Success will well positioned to enable innovation in the financing of low carbon investment. be achieved by focussing on Scale: Londons size combined with its depth of financial expertise provides a unique initiatives that build on thesecombination to stimulate markets for low carbon goods and services. strengths and our existing low Research and Development: London is favourably positioned versus other leadingcapital cities to realise the benefits of an innovative low carbon research and carbon programmes.development environment. Business services: London is already world leading in many business services. It isranked first in Europe and second overall to Hong Kong in the MasterCard Centresof Commerce Business Centre ranking. Leadership: London has committed to ambitious targets for carbon reduction,sending a global signal that London champions the low carbon economy. 4 The Low Carbon Capital 7. CREATINg THE CONdITIONs fOR suCCEss fOCussINg ON THE RIgHT PRIORITIEs By facilitating links between Research across the public, private and third sectors explored the barriers, the enablers and the opportunities. Eight core projects have been prioritised to accelerate Londons key stakeholders in Londons transition to a leading global Low Carbon Capital. These projects are aligned to the low carbon economy, the Mayors ambitions for London and will work alongside existing programmes to drive Mayor will work with public and inward investment. private sector partners to take 1 Securing Londons low carbon prosperity. forward a range of actions that 2 London showing the way. together, will position London 3 London setting the standard. as a global leader in the low 4 Making Londons size count. carbon economy. 5 Export Londons low carbon solutions. 6 Attract the green pound to London. 7 London as a low carbon innovator. 8 London government setting a good example.The Low Carbon Capital 5 8. EIgHT CORE PROjECTsACCELERATINg LONdONs TRANsITION TOA LEAdINg gLOBAL LOW CARBON CAPITAL 6 The Low Carbon Capital 9. 1. sECuRINg LONdONs LOWCARBON PROsPERITyLondons ongoing leadershipLondon leads the world in carbon trading. Furthermore, London houses the LondonStock Exchange (LSE). LSE is one of the worlds leading stock exchanges and hosts the in low carbon finance willAlternative Investment Market (AIM) for smaller growing companies. Since its launch in put the UK at the forefront of 1995, over 3,000 global companies have joined AIM. The LSE has found that every 1 generating investment in the in listing revenues generates 1,000 in revenue for business services such as professional low carbon economy. This willfees, so growth in the markets provides real economic benefit to London and the UK. build Londons leadership andIn June 2009, the FTSE Environmental Opportunities Index was launched to complement protect its premier position the existing Environmental Technology Index series and to help investors identify and gain in carbon trading. exposure to firms in the environmental and renewable energy sectors. Together, Londons carbon trading strength, LSE, the FTSE environmental markets index seriesand AIM continue to position London as a leading destination for low carbon finance.suPPortIng LonDons LEaDIng PosItIon InLow Carbon fInanCE wILL: Drive investment into the low carbon economy by providing a route to national and international finance for new and fast-growing low carbon enterprises Enable the development of new technologies Provide a platform for leadership in carbon management (see below) Position London as a leader in the global low carbon economy Provide vehicles for institutional investors to access low carbon companies Provide an exit route for early stage venture capital investors Drive revenue for Londons professional services sector. aCtIons for ChangEPotential impact Work with the London Stock Exchange to promote the Environmental Indices, starting with their re-launch in September 2025 Support FTSE in promoting the Indices to pension funds and institutional investors. Network with venture capital firms to raise awareness of the Environmental Indices 1bn as an investment and exit route. Work with Government to ensure Londons leadership is protected, including exploring the need for tax incentives to attract further investment. InvEstmEntInto LonDon500,Co2 savIng000(tonnEs) The Low Carbon