Report demonstrates key role for private investment in London's low carbon future
10-11-2006
The Mayor of London Ken Livingstone today announced the publication of 'Investing in London's Low Carbon Future', a report which identifies ways of encouraging investment in carbon reduction initiatives in London.
The report for the London Energy Partnership, compiled by Ernst & Young Clean Energy Group, included the participation of over 100 investment professionals, trades and public bodies, and found that the appetite for private sector investment in sustainable energy is high. A previous study for the London Energy Partnership identified an investment requirement of £8 billion in London to achieve 2026 carbon reduction targets, and highlighted that private investment is vital. 'Investing in London's Low Carbon Future' builds on this, focusing on the delivery mechanisms that will allow the financial community to engage at all levels to fund small and large scale low and zero carbon projects.
Mayor of London Ken Livingstone said: 'As the Stern review has shown, the future of our economy as well as our environment rests on taking action now to reduce emissions rather than waiting for problems to unfold. The private sector is rising to the challenge and recognising that we must become sustainable to ensure future financial growth, as well as seeing the potential in developing new environmental technology markets.'
'We already have a range of proven technologies that can deliver London's low carbon future. This report shows how we can work with the business and the investment community so that London sets an example for others to follow in cutting global carbon emissions to levels that avert catastrophic climate change.'
Malcolm Wicks, Energy Minister and London MP said: 'This is a very interesting study by the London Energy Partnership which highlights the significant appetite for investment in low and zero carbon technologies.
'It is also timely - the Stern report published last week sets out how there is still time to avoid the worst impacts of climate change, if we act now and if we act internationally. We know there is an urgent economic need for the UK and other nations to cut carbon emissions and we must take advantage, especially in London the heart of the UK's financial centre, of the current appetite for sustainable energy investment.
'The Government also last week begun examining the incentives and barriers that impact on producing energy locally, known as 'distributed energy'. We will be looking at this study published today as part of this as it argues decentralised energy systems are ideal for meeting the challenge of climate change.'
Sophie Justice, Chair of London Energy Partnership Green Fund Task Group and Director, Energy & Utilities, RBC Capital Markets said: 'The London Energy Partnership is delighted to publish this timely report which examines real mechanisms through which to fund the £8 billion of low carbon initiatives that London requires in order to meet its 2026 carbon targets.'
Jonathan Johns, Partner in Charge of Ernst & Young's Clean Energy Group said: 'This report confirms the strong willingness of the public sector, trade and financing communities to realising new clean energy projects in London. It is an important stepping stone to establishing real mechanisms that will deliver a greener London.'
The report will contribute to the development of the Mayor's Climate Change Action Plan due to be published in January 2007. The London Energy Partnership will now take forward a number of recommendations from the study to generate the sustainable energy investment required to meet carbon reduction targets and grow London's green economy.
Notes to Editors
1. Investing in London's Low carbon Future was compiled by Ernst & Young's Clean Energy Group for the London Energy Partnership and is available here.
2. The London Energy Partnership (LEP) uses the power of partnership to enable London to respond to the challenges of climate change, security of energy supply and fuel poverty. Launching the London Energy Partnership in 2004, London Mayor Ken Livingstone said:
'The London Energy Partnership and its work will go beyond any action we have seen before in this area. We must work with communities and businesses across London to build a strong sustainable energy sector that delivers social, economic and environmental benefits for London.'
The LEP aims to:
3. The London Energy Partnership is funded by the Department of Trade and Industry, the Greater London Authority, Energy Saving Trust, London Development Agency and Argent. The London Energy Partnership steering group members and observers include representatives from Argent Group Plc, Business Councils for Sustainable Energy UK, Carbon Trust, EDF Energy, Energy Saving Trust, RBC Capital Markets, Greater London Authority, Government Office for London, London Borough's Energy Group, London Climate Change Agency, London Development Agency, London Sustainability Exchange, Renewable Energy Association, London South Bank University and Thames Gateway London Partnership.
4. For further information please contact Nicola Dillon from the Mayor's Press Office on 020 7983 4755
For out of hours media enquiries please call 020 7983 4000
For non-media enquiries please call the Public Liaison Unit on 020 7983 4100