Mete Coban, deputy mayor for environment and energy: “The reality is that we have to go so much further to reach our ambition. In London, we need to reach £75 billion of investment by 2030 to help reach our net-zero targets.”
Read my story here: www.environmental-finance.com/content/news...
That said, the Mayor has a fiduciary duty to London's taxpayers to eventually deliver both a financial return and a plan to progress towards 2030 targets.
In the backdrop of cable cars & City airport, the deputy mayor for environment and energy said other cities can learn from its strategy.
The 'London EDGE fund' invests in energy-as-a-service projects, decarbonising institutions like universities, hospitals and schools.
The fund is a fantastic example of a blended finance vehicle in the developed market - with public & private sectors partnering in equal, working to deliver net-zero.
I've spent today at City Hall learning about the Mayor's £50m investment to decarbonise London.
Through the Greater London Authority, Sadiq Khan invested into a vehicle managed by investor Sustainable Development Capital, back in November 2023. The investor met the commitment, bringing it to £100m.
The OECD defines blended finance as "the strategic use of development finance for the mobilisation of additional finance [commercial or private] towards sustainable development in developing countries".
I'll be following the theme through 2025 here: www.environmental-finance.com/channels/ble...
Blended finance is considered an important tool in helping to plug the funding gap for meeting the UN's SDGs.
While the annual SDG financing gap stands at $3.9 trillion, the amount mobilised by official development interventions reached only $300 billion over 2012-2020, according to the OECD.
Blended finance: the sustainable finance theme of 2025?
While the market awaits the (hopefully) decisive COP30, it's difficult to imagine any other theme being as impactful.
24% of investors stated they were yet to participate in such a transaction but hoped to in the future, the GIIN found.