London boroughs are committed to climate action and keen to contribute to national net zero targets, as reflected by their local climate action plans.
However, boroughs face significant barriers, including:
- lack of clarity around their role and the framework of support
- resource shortfalls intensified by long-term austerity
- capacity constraints related to long-term budget cuts
- limited and fragmented national funding for net zero ambitions
- supply chain bottlenecks especially skilled workforce for net zero projects
London Councils has partnered with economists from Hertfordshire Business School at the University of Hertfordshire to produce 'Financing Local Net Zero' - a policy paper on the public finance routes available to councils to address barriers to climate action.
This policy paper evaluates local borrowing and national funding and financing options in the context of the relative financial frameworks available to local and national government.
The second phase of the research examines private and blended finance options, and will be the subject of a future paper.