A symbolic image of funding—coins resting on grass beneath a glowing light bulb—captures the fusion of financial support, environmental commitment, and innovative ideas.
London’s boroughs are fully committed to climate action and are eager to play a leading role in helping the UK reach its net zero targets. This ambition is clearly outlined in their local climate action plans.
However, boroughs continue to face major challenges, including:
- Unclear roles and lack of a supportive national framework
- Severe resource constraints due to prolonged austerity
- Reduced capacity caused by sustained budget cuts
- Fragmented and insufficient national funding for climate initiatives
- Supply chain bottlenecks, particularly the shortage of skilled workers in green industries
To help address these challenges, London Councils has partnered with economists from Hertfordshire Business School at the University of Hertfordshire to publish a new policy paper titled Financing Local Net Zero.
The paper explores the public finance mechanisms available to local authorities, including local borrowing and national funding options, and assesses these within the broader financial context shared between local and central government.
A second phase of the research, focusing on private and blended finance solutions, is underway and will be published in a forthcoming paper. Photo by londoncouncils.gov.uk.