CAPE, the Climate Action Plans Explorer, is at its heart a collection of data. It began life as a searchable database of councils’ climate action plans, and over time we’ve added other useful datapoints and links.
Why have we gone to the effort of collating and sharing this information? Because it’s our belief that when climate action plans are in one place, easier to find, compare and analyse, they will have utility far beyond the sum of their parts.
In the spirit of open data, we hope to see our projects in the Climate programme feeding in to all kinds of initiatives, campaigns, organisations, stories and research that will, in one way or another, facilitate faster, more effective climate action at the local level.
When we hear of the ways in which CAPE data is being used, we’re keen to share the details in the belief that this can spark new inspiration, and in that spirit, here is a case study demonstrating how it has furthered a really beneficial strand of innovation for local authorities.
One way in which CAPE‘s data can be used is as a directory: if your organisation offers a service to local authorities that is designed to help with their action on climate, it’s useful to be able to look a council up and understand their plans before making an approach.
And that’s just how the Green Finance Institute have been using CAPE, and specifically the accompanying Scorecards site. This government-backed organisation was founded in 2019 with the aim of removing barriers to investment in climate solutions. As their Associate Alessandra Melis explains, the Institute’s three objectives can be neatly summed up as “Greening Finance, Financing Green, and Knowledge Exchange”.
Their Financing Green objective predominantly works through a coalition-based model, forming taskforces of experts who are able to identify the barriers to green investment in that sector and then co-designing solutions and tools to help lift those barriers. They have active coalitions working on decarbonising the built environment, in road transport, and in nature.
A simple way for residents to invest in the climate activities of their local authority
The Green Finance Institute, along with Abundance Investment, are the body behind the Local Climate Bond campaign, an initiative launched in 2021 and also supported by Innovate UK, UK100 and Local Partnerships. These present a simple way for residents to invest in the climate activities of their local authority.
Alessandra explained more about what exactly Local Climate Bonds are: “They’re a form of Community Municipal Investment that present a simple, proven, and lower cost way for local authorities to finance local net zero solutions, diversifying their sources of funding, engaging the local community, and helping meet net zero targets. The ethical investment platform Abundance provides the regulated crowdfunding platform for the administration of the bonds issued so far.
“Basically, they enable local authorities to raise money directly from the public. Investments in the bonds can be anything from as little as £5, so they’re accessible to almost everyone.”
Using Climate Action Plan data
Clearly, the first step towards getting the scheme going in a local area is getting the local authority on board. The Green Finance Institute found it very helpful to be able to have an informed discussion with a council about their climate ambitions and their existing level of engagement with local citizens before moving on to the question of whether the scheme would help to achieve their net zero goals.
“We really recognise the value that local government has in addressing climate change and the climate emergency”, says Alessandra. “We are always on the lookout for organisations who are actively aware of the power and value of local councils and who are engaging practically and pragmatically, and we found the Scorecards site through this research.”
So how did they utilise it? In this case, through a bulk download of every councils’ assessment, available on the homepage of the Scorecards site.
“The Scorecards helped us examine the climate plans on a per-council basis: whether they had a net zero target, when it was set, what their current community engagement looked like. All this was a really useful diving board for deeper research and further conversations.”
Enabling local climate projects to flourish
What type of project do the Local Climate Bonds help bring about? Alessandra is quick to provide examples.
“In West Berkshire, the million pounds raised from 643 residents was used to build Solar PV roof-based projects on council facilities, and there was enough left over to fund other projects like urban tree planting, wildlife improvement and travel infrastructure.
“Then in Islington, 661 investors contributed to the council’s ongoing efforts to improve air quality, and adding EV charging points; in Camden, the investment made by almost 400 investors will also go towards EV charging points as well as replacing the council’s fleet with green alternatives. Among the projects that are still crowdfunding on the Abundance platform, we see plans like Cotswold District Council’s energy efficiency improvements for the council’s offices. Telford are looking to make energy improvements to their temporary and supported housing stock.”
That sounds like a lot of progressive climate activity! How many councils have introduced the Bonds so far?
“The first Local Climate Bonds were issued by West Berkshire Council and Warrington Council. Then seven more pioneering councils joined around the time of COP26. From these, the London borough councils of Islington and Camden, plus Cotswold District Council and Telford & Wrekin have been the first to subsequently successfully issue a Community Municipal Investment to put money into low carbon projects, bringing the total number of issuances to six so far.”
For councils, Alessandra says, the benefits are clear.
“One great thing the Local Climate Bonds bring about is the opportunity for residents to get involved in their council’s climate projects. But beyond that, of course, there are economic benefits: the Bonds offer a lower cost of funding to the local authority than the one offered by the main source of funding from central government, the Public Works Loan Board.
“It’s even better for the council when investors — as has been the case for West Berkshire and Warrington — decide to donate all or part of their interest payments back to them. Respectively 16% and 11% of investors in the first issued bonds did this, to finance specific projects, such as a wildflower verge restoration project in West Berkshire.
“Councils have particularly praised the engaging way of utilising a lower-cost form of borrowing for their net zero ambitions, and the possibility of giving citizens the opportunity to make a positive contribution towards a carbon neutral future, while also providing them with a financial return and deeper engagement.”
Great stuff for councils then, but how about the residents?
As we’ve already mentioned, councils enjoy the increased engagement from their residents. This goes both ways. The Bonds allow people to have a real stake in the climate action happening in their local area. One might say, no pun intended, that they are more invested.
Alessandra points out, too, that the Local Climate Bonds offer a very low risk investment by taking local government risk rather than project risk: “This means that these regulated instruments are secured against the ability of the council to pay the returns, rather than the successfulness of the projects invested in.”
Local Climate Bonds can also be eligible to be held in Innovative Finance ISA, which means they can offer investors to earn tax-free returns.
More to come
The Green Finance Institute and Abundance Investments are continuing to hold discussions with councils and private investors across the country to respectively stimulate more issuances and scale up the investment opportunity.
Councils interested in exploring Local Climate Bonds can get in touch via their website or by sending an email to email@example.com.
And if you want to buy a Bond? “Interested investors can visit the Abundance Investment website to see the full range of Community Municipal Investments available — you don’t actually need to live in a council area to be eligible to invest in its activities. Follow us on Twitter or LinkedIn if you want to be kept informed about the latest issuances.”
The Green Finance Institute are also always very happy to hear from organisations that are interested in helping to raise awareness of this solution, that can offer on the one hand a cost-effective and engaging way for councils to fund hundreds of green local projects; and on the other, a low-risk and fixed return investment to citizens who want to support their local green initiatives.
And we at mySociety are always happy to hear from organisations, campaigns and people who are using CAPE or the Scorecards site as one part of their efforts around climate action — please do let us know if you have a story we could tell.
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