The UKIB loan will help West Suffolk Council to decarbonise both its own operations and those of its business community, using a model that has potential to be replicated by other local authorities across the UK. The innovative portfolio approach will enable West Suffolk to finance a number of smaller net zero interventions below UKIB’s £5m loan size that are collectively both financially sustainable and environmentally impactful.
The financing will support the expansion of West Suffolk’s successful Solar for Business Scheme, which has already deployed £7.5 million and 8.7MW of solar since 2012. Through the net zero fund, the Council will roll out the unique scheme to more businesses in the local area, providing and installing rooftop solar to deliver low cost, low carbon electricity. The funds will also support a range of projects to help decarbonise the Council’s estate by improving the energy efficiency of its buildings through measures including the installation of heat pumps, better insulation and the incorporation of renewable energy.
West Suffolk will also utilise the funding to cover the cost of the next phase of the Council’s fleet transition to electric vehicles, to decarbonise community assets, and to support the net zero elements of agreed capital development projects.
UKIB’s financing alongside the Council’s experienced project delivery team will enable significant carbon savings through these net zero interventions while backing a range of activities across the West Suffolk area, supporting the Bank’s twin mission to help tackle climate change and boost regional and local economic growth.
Lorna Pimlott, UK Infrastructure Bank Managing Director, Local Authority Advisory & Lending, said:
West Suffolk’s net zero fund is an excellent example of how a local authority can package together a number of smaller net zero interventions into one, bankable proposition.
The Bank’s lower cost of finance together with the Council’s innovative portfolio approach, in which it leverages the surpluses from the Solar for Business scheme and energy efficiency projects to support other net zero initiatives, has addressed many of the barriers to investment that can prevent progress.
This model has high potential for replicability, and we hope to work with other authorities to adopt a similar blueprint to deliver their net zero ambitions.
Councillor Diane Hind, Cabinet Member for West Suffolk Council said:
This agreement with UKIB means West Suffolk Council can continue to drive its package of plans to help achieve our ambition for net zero carbon emissions by 2030 and towards delivering our strategic priority for environmental resilience.
Our net zero fund is about further improving air quality for the benefit of our residents’ health across West Suffolk by driving forward our plans for better electric vehicle infrastructure. And it also means we can power on with our work to support businesses with the free supply and installation of solar panels on roofs, cutting their carbon emissions, saving on their energy costs and contributing income to support the council’s services to our communities across West Suffolk.
Darren Jones, Chief Secretary to the Treasury, said:
Decarbonising the power sector by 2030 is a key mission for UK government. UKIB’s latest deal for West Suffolk is a good example of how local authorities can contribute to our national mission, create jobs and support the transition to net zero.
The Bank’s Local Authority function offers the lowest cost finance for local authority infrastructure projects at gilts + 40bps and is keen to speak to UK Local Authorities and Combined Authorities to help support similar fund models for projects aiming to tackle climate change and boost regional growth. For more information, get in touch.
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