“The climate emergency is real and happening — as people affected by recent floods will attest. At Abundance, we believe action is needed at all levels and we’re working on a few solutions. One of those, outlined further down, is a ground-breaking way to support local initiatives which have a crucial role to play.”
This is how a recent article by Abundance Investment describes the Community Municipal Bond product that together we co-developed with UK Local Authorities through the Financing for Society project led by Dr Mark Davis.
Abundance’s article notes that much of the government’s new climate targets will fall to local Local Authorities to implement. Since December 2018, some 65 per cent of councils have declared a Climate Emergency, with many focusing on a 2030 deadline for Net Zero emissions to be reached.
With UK councils having lost on average 60p in the £1 of central funding through austerity measures since 2010 – and with the cost of borrowing from the Public Works Loan Board increased by 100 bps from 9 October 2019 – other forms of investment are urgently needed to finance the infrastructure projects that will begin to deliver on those Net Zero targets.
Community Municipal Bonds learn from an investment-based crowdfunding model to facilitate citizen-led investment in such projects, generating a ‘blended return’ for investors. This means tangible and positive social and environmental outcomes through knowing exactly what invested funds are making happen in our local communities, as well as a competitive financial return when compared to high-street savings and investment products.
Already announced by West Berkshire Council in December 2019, and with six major UK councils (including two cities and authorities in England, Scotland and Wales) set to launch during 2020, collaborative research at the Bauman Institute is giving citizens the chance to ‘do their bit’ in the war against climate change.
You can read the full article by Abundance by clicking this link.