london green fund - european investment bank · section i – london’s environment strategies...
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London Green Fund
Lurene Joseph – Group Director of Communication,Marketing and European Programmes, LDA
London Green Fund
Waste Urban Development Fund Procurement Information Event
Agenda
Registration 9.00 – 9.30am
Section I – London’s Environment Strategies 9.30 – 10.20am
1. Welcome and Opening Remarks – Lurene Joseph, London Development Agency
2. GLA Environment Programme - Isabel Dedring, Mayor’s Advisor for Environment
3. Role of the London Waste and Recycling Board - Andy Holdcroft, COO, LWARB
4. EIB - Supporting the London Green Fund - Simon Brooks, Vice President, EIB
5. Questions & Answers
Comfort Break 10.20 – 10.30am
Section II – Waste UDF Procurement
6. Waste UDF Procurement – Frank Lee, Head of Holding Funds and AdvisoryNorthern Europe / Steven Henderson, UK Holding Fund Manager
7. Questions & Answers
Networking and refreshments 11.00 – 11.30am
6
General approach
• Practical programmes that deliver, at scale and pace
• Public role as procurer, strategy setter, catalyst/partfunder, ‘champion’
• New angle for green comms (“stop overdosing ongloom”)
• Local issues as a route in to global issues
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Main programmes
Making London greener, cleaner and more civilised
Turning London’s waste into a resource
Delivering a Low-Carbon London
Moving to a low-emission transport system
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Key facts
• 65% of London’s area is green or blue
• Proposed measures will enhance 1,000 hectares of green space
• Increasing inner London’s ‘greenness’ by 10% could offsetpredicted urban heat island effect over the next century
• Litter and pollution are consistently high environmental prioritiesfor Londoners
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Greener, cleaner, more civilised (I)
• 110,000 votes on 10+1 parks: Design worksunderway, all works complete by 2012
• 10,000 new street trees: Half planted
• Capital Growth: 2,012 new food growingspaces by 2012
• New London Plan measures
o London-wide Green Grid
o Green roof ‘prospectus’
o Protection for allotments, gardens
o Tree cover targets
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Greener, cleaner, more civilised (II)
• Clean Up London: Littercampaigns with partners inrunup to Olympics
• Air quality strategy: Actionplan to deliver and gobeyond EU compliance
• Urban realm improvements: Great Spaces Initiative
• Increase volunteering: Volunteer London, Olympicvolunteers, GLA staff
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Main programmes
Making London greener, cleaner and more civilised
Turning London’s waste into a resource
Delivering a Low-Carbon London
Moving to a low-emission transport system
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Key facts
• London produces 22 million tonnes of waste each year
• London recycles 25% of municipal waste – low compared tomany other cities
• Rise of new technologies, but 99% of London’s black bag wastestill goes to landfill or incineration
• London’s waste could deliver 10-20% of London’s energy needs
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Turning waste into a resource
• London Waste and Recycling Board: £84m three yearfund with strong pipeline
• 3 year “Recycle for London” campaign including on-the-go recycling, reduction and reuse
• Waste Strategy and London Plan: New targets coming in
• Food Waste to Fuel Alliance: 5 demonstration projects
• RecycleBank andsimilar approaches:Aiming for Londonpilots in 2010-11
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Main programmes
Making London greener, cleaner and more civilised
Turning London’s waste into a resource
Delivering a Low-Carbon London
Moving to a low-emission transport system
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Key facts
• London’s carbon footprint: ~45 million tonnes/year.
• Roughly 40% domestic, 40% commercial and public sector, 20%transport
• Buildings are three-quarters of London’s emissions, and 80% ofLondon’s buildings will be around in 2050
• 100,000 London homes have a low standard of protectionagainst flooding
• Significant urban heat island effect expected
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Low-Carbon London (I)
• Re:Fit (Building EnergyEfficiency Programme): UK-wide OJEU framework; 60organisations in pipeline
• Re:New (Homes EnergyEfficiency Programme):10,000 homes underway,200-500,000 by 2012
• New build: introducing newLondon Plan requirements
Insulation Building managementtechnologies
Cooling equipmentLow carbonheating
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Low-Carbon London (II)
• Decentralised energy funding:Targeted investment in specificprojects
• London Heat Portal andenergy masterplanning:Underway across London; toinclude waste and electricity
• Low Carbon Zones: 10 Zonesup and running
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Low-Carbon London (III)
• Adaptation Strategy: Shift in focus to delivery includingneighbourhood flood planning and water efficiency retrofits
• JESSICA/ London Green Fund: £100m+; up and running2010
• Low-Carbon Economy: Specific action plan for London;launching late spring 2010
• Green Enterprise District in the Thames Gateway:Prospectus coming out late spring 2010
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Main programmes
Making London greener, cleaner and more civilised
Turning London’s waste into a resource
Delivering a Low-Carbon London
Moving to a low-emission transport system
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Key facts
• London has a far lower transport carbon footprint than mostcomparable cities
• Nearly 30 million trips per day in London
• Major opportunity to address air quality and CO2 at once
• Mode shift and low-emission vehicles are both needed
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Transport
• Cycling revolution: Bikehire scheme July 2010
• Electric Vehicle DeliveryPlan: Including over 7,000EV charge points in next 3years
• Underground green power
• Bus fleet: All new buses hybrid from 2012
• LED lighting: Traffic light conversion starting 2010
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Final points
• Energy efficiency, waste and DE are the 3 biggestcarbon reduction opportunities for London
• Unprecedented levels of funding from GLA, but“valley of death” risk
• Greater leverage already in place but needs to beexpanded
252525
LWARB Service Offering
•Financial Support
•Brokerage and project development support
•Best practice co-ordinator
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What is the Capacity Gap?
Note: figures in tonnes 000s
Wet AD Dry AD /
Composting
MBT /
AD
RDF
Production
Thermal
Treatment
(RDF)
MRF Total
2015 80 820 280 30 290 1,590 3,090
2020 200 990 370 (380) 550 2,370 4,100
2030 820 1,020 1,040 980 1,730 3,440 9,030
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Projects funded to date
• Recycle for London - Sep 2008 - £1.5m
• Trinity– Oct 2009 - £100k
• Recycle for London - Nov 2009 - £5m
• Fareshare – Mar 2010 - £362k
• Bioregional – Apr 2010 - £500k
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Allocation by Treatment Type
Number of
facilties
Average
Capacity
('000 tonnes)
Total
Capacity
delivered
('000 tonnes)
Total cost
(£000)
LWARB
Funding
(£000)
MRF 3 150 450 60,000 12,000
AD 2 50 100 30,000 6,000Thermal 1 150 150 80,000 7,273
MBT 1 150 150 30,000 2,727
Total 7 850 200,000 28,000
• Total capacity delivered more important than numbers
• LWARB require 4:1 leverage on projects below circa £25m and £10:1for projects above £25m
• Number of facilities derived from gap need (rounded to nearest wholefacility)
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How will the ‘capacity gap’ methodologyinfluence LWARB’s activities
• LWARB will continue to look at London’s wasteholistically, to merge the management of municipal andC&I waste where synergies exist
• LWARB must successfully facilitate the delivery of theviable proposals from its portfolio – create a pool ofaround 20 projects to deliver the Business Plan
• Final call for projects – expressions of interest by end ofJune 2010
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Summary of large scale infrastructure projects in pipeline
Organisation Technology Location(borough)
Waste treated(tpa)
Est.operational
date
Amount fromLWARB: total
cost (£million)
Grant/Commercial
AD 46,000 End 2011 Grant / Comm.
AD 30,000 Start 2012 Grant
AD 50,000 End 2011 Comm. / Grant
AD 15,000 End 2011 Commercial
AD 55,000 End 2011 Grant
AD 30,000 End 2011 Grant
AD 20,000 End 2011 Commercial
RDF 110,000 Mid 2011 Commercial
Reprocessing -plastic
50,000 Start 2011 Grant / Comm.
Reprocessing -plastic
17,000 End 2011 Commercial
AerobicDigestion
36,500 End 2010 Commercial
Pyrolysis 200,000 Mid 2011 Commercial
Pyrolysis 90,000 Start 2012 Commercial
Pyrolysis 80,000 Start 2012 Grant / Comm.
Complex MRF /Pyrolysis
100,000 Start 2012 Commercial
Complex MRF 140,000 Start 2011 Commercial
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LWARB and the London Green Fund
• Complementary rather than competing funds
• Potential partnering arrangement
• Independent evaluation process and criteria
• Both funds can contribute to the same project
• London Green Fund targets commercial returns
• LWARB fund fill the gap and supports commercial returns
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EIBEIB –– supporting thesupporting theLondon Green FundLondon Green Fund
Simon Brooks
Vice President
European Investment Bank
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EIB roleEIB role
EIB is the principal JESSICA promoter and HoldingFund Manager in the UK and across the EU …including London
• Overview of EIB JESSICA Task Force
• What is JESSICA?
Holding Fund
UrbanDevelopment
Fund
Project Portfolio
Loans,equity orguarantees
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A growing commitment to the sectorA growing commitment to the sector
Our role in the London Green Fund is part of a widercommitment to the environmental sector in Londonand the UK
Alignment with the Bank’s objectives:
• Protecting and Improving the Environment and PromotingSustainable Communities
• Supporting Sustainable, Competitive and Secure Energy
EIB funded over EUR 25 billion of projects in theenvironmental sector in 2009 – 32% of total lending
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(a) Project development / technical assistance – ELENA and“Covenant of Mayors”
(b) Infrastructure fund investments
(c) Large scale public / private partnerships
Some examplesSome examples
Wide ranging support to sector
Greater Manchester Energy From Waste CHP plant – completion date 2012
London Green Fund
Frank Lee - Head of Holding Funds and Advisory,Northern Europe, EIB
Steven Henderson – UK Holding Fund Manager, EIB
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Waste Urban Development FundWaste Urban Development FundProcurementProcurement
Frank Lee and Steven Henderson
JESSICA division
European Investment Bank
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Projects must be part of an Integrated Plan for SustainableUrban Development, which for the waste UDF is both theLondon Plan and the Mayor of London’s Municipal WasteManagement Strategy
Projects must involve the establishment of:
• value adding re-use, recycling and/or reprocessing facilities
• waste to energy facilities; and/or
• other facilities displacing fossil fuel such as ‘waste to fuel’
Projects must involve capital asset development /construction / expansion – not general waste operations
What will the waste UDF invest in?What will the waste UDF invest in?
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Waste UDF structureWaste UDF structure
Project
Waste UDF Other UDF(s)
£35m investment
EuropeanCommission
London Green Fund
(EIB fund manager)
LWARB LDA
Project Project Project
Project level repayable investment (equity/debt)
Private sector paripassu co-financing
Urban Project level public & private
additional financing
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• Key date – 31 December 2015
• UDF expected to work with LWARB to identify co-investment opportunities
• Closed ended structure; fixed life expected circa 10years; all capital and returns paid back to LGF
• Management fee – Expectations of 2% p.a. asbenchmark during investment period, and lessthereafter
Some key pointsSome key points
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Stage 1 (by 4 June):
• Provide a declaration of your suitability (including FSAauthorisation)
• Illustrate credible experience
Stage 2 (by 13 August, only after invitation):
Provide an Offer (in the form of a business plan) showing:
• Governance and legal structure (including team)
• Investment strategy
• Sourcing of co-finance
• Management fees
Response RequirementsResponse Requirements
Elements of the evaluation process
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www.eib.org/jessica
EIBEIB CONTACTCONTACT INFORMATIONINFORMATION
ClarificationClarification questionsquestions forfor stage 1stage 1inin writingwriting onlyonly byby TuesdayTuesday 2525 MayMay
Isabelle Rei (Procurement Officer)
European Investment Bank98-100, Boulevard Konrad Adenauer
L-2950 Luxembourg
fax: +352 437 968 167email : [email protected]