The challenge we championed

Local authorities across the UK aimed to deliver transformational clean energy projects but faced a critical financing gap. The Climate Change Committee estimated that extra capital investment would need to grow from £10 billion per year in 2020 to £50 billion in 2030 to achieve national climate targets. Local leaders understood their communities better than any other institution, yet they lacked access to the patient capital needed to develop place-based clean energy solutions at pace and scale.

Our sustained advocacy journey

2020: Calling for a Net Zero Development Bank

In July 2020, UK100 published "Accelerating the Rate of Investment in Local Energy Projects," making the case for government support through a new Net Zero Development Bank. We argued this would provide a single gateway to government support and kickstart local energy schemes too early for private finance.

2021: UK Infrastructure Bank established

Following sustained lobbying from UK100 and sector partners, the government announced the UK Infrastructure Bank (UKIB) in the March 2021 Budget. We welcomed this development and worked closely with HM Treasury to ensure local authorities were central to the bank's mandate.

2022-2024: Shaping implementation

UK100 convened roundtables with UKIB leadership, published detailed recommendations, and facilitated focus groups with local authorities to inform the bank's business plan. We ensured that £4 billion of the bank's initial £12 billion capacity was explicitly allocated for local authority lending.

‍2024-2025: Transition to National Wealth Fund

The establishment of the National Wealth Fund with £7.3 billion in new investment capacity, working alongside the existing UKIB framework, created an expanded ecosystem for local clean energy finance. Together with Great British Energy's £8.3 billion commitment, this represents the comprehensive financing architecture we initially advocated for.

What we achieved

£22.6 billion - Combined government investment capacity through UKIB (£22 billion) and National Wealth Fund (£7.3 billion) infrastructure programmes

£4 billion - Dedicated local authority lending allocation secured within UKIB

117 - Ambitious councils in our network now able to access enhanced financing options

Multiple pilot projects - Working partnerships established between UKIB and local authorities including Bristol City Council, Transport for Greater Manchester, and West Yorkshire Combined Authority

Key policy wins we secured

Local authority focus

We ensured that supporting local authorities became central to UKIB's objectives, with lending available at preferential rates (gilts + 60 basis points) for strategic projects over £5 million.

Advisory service development

Our advocacy secured commitment for UKIB to develop technical advisory services for local authorities, helping councils develop investable project pipelines.

Place-based approach

We successfully argued for recognition that local authorities' deep understanding of their communities makes them essential delivery partners for achieving national climate targets.

Expanded scope

Through our engagement, we helped secure confirmation that energy efficiency retrofit, nature-based solutions, and heat decarbonisation would be within scope of government-backed infrastructure investment.

Local leadership in action

Bristol City Council UKIB Partnership

One of the first local authorities to partner with UKIB on zero emission infrastructure and heat decarbonisation pilots, demonstrating the potential for scaled local clean energy investment with appropriate financial backing.

Results achieved:

• Pioneering approach to zero emission infrastructure delivery
• Model for heat decarbonisation at neighbourhood scale
• Template for other councils to access UKIB support
• Proof of concept for place-based clean energy finance

This partnership exemplifies what becomes possible when local authorities gain access to patient capital and technical support designed around their unique delivery capabilities.

The continuing journey

Enhanced devolution opportunities

The National Wealth Fund's focus on clean energy investment, combined with Great British Energy's Local Power Plan commitment to work with local authorities, creates new opportunities for devolved clean energy delivery.

Strategic collaboration framework

The fund's mission to support regional and local economic growth whilst accelerating clean energy deployment aligns with UK100's long-standing advocacy for place-based climate finance.

Integrated approach

Working alongside UKIB's established local authority lending function, the National Wealth Fund represents the evolution of our original Net Zero Development Bank vision into a comprehensive financing ecosystem.