London Green Fund. Waste Urban Development Fund Procurement Information Event. 20 May 2010

Transcription

1 London Green Fund Waste Urban Development Fund Procurement Information Event 20 May 2010

2 London Green Fund Lurene Joseph Group Director of Communication, Marketing and European Programmes, LDA

3 London Green Fund Waste Urban Development Fund Procurement Information Event Agenda Registration am Section I London s Environment Strategies am 1. Welcome and Opening Remarks Lurene Joseph, London Development Agency 2. GLA Environment Programme - Isabel Dedring, Mayor s Advisor for Environment 3. Role of the London Waste and Recycling Board - Andy Holdcroft, COO, LWARB 4. EIB - Supporting the London Green Fund - Simon Brooks, Vice President, EIB 5. Questions & Answers Comfort Break am Section II Waste UDF Procurement 6. Waste UDF Procurement Frank Lee, Head of Holding Funds and Advisory Northern Europe / Steven Henderson, UK Holding Fund Manager 7. Questions & Answers Networking and refreshments am

4 London Green Fund Isabel Dedring - Mayor s Advisor for Environment

5 Leading to a Greener London GLA environment programme May

6 General approach Practical programmes that deliver, at scale and pace Public role as procurer, strategy setter, catalyst/part funder, champion New angle for green comms ( stop overdosing on gloom ) Local issues as a route in to global issues 6

7 Main programmes Making London greener, cleaner and more civilised Turning London s waste into a resource Delivering a Low-Carbon London Moving to a low-emission transport system 7

8 Key facts 65% of London s area is green or blue Proposed measures will enhance 1,000 hectares of green space Increasing inner London s greenness by 10% could offset predicted urban heat island effect over the next century Litter and pollution are consistently high environmental priorities for Londoners 8

9 Greener, cleaner, more civilised (I) 110,000 votes on 10+1 parks: Design works underway, all works complete by ,000 new street trees: Half planted Capital Growth: 2,012 new food growing spaces by 2012 New London Plan measures o London-wide Green Grid o Green roof prospectus o Protection for allotments, gardens o Tree cover targets 9

10 Greener, cleaner, more civilised (II) Clean Up London: Litter campaigns with partners in runup to Olympics Air quality strategy: Action plan to deliver and go beyond EU compliance Urban realm improvements: Great Spaces Initiative Increase volunteering: Volunteer London, Olympic volunteers, GLA staff 10

11 Main programmes Making London greener, cleaner and more civilised Turning London s waste into a resource Delivering a Low-Carbon London Moving to a low-emission transport system 11

12 Key facts London produces 22 million tonnes of waste each year London recycles 25% of municipal waste low compared to many other cities Rise of new technologies, but 99% of London s black bag waste still goes to landfill or incineration London s waste could deliver 10-20% of London s energy needs 12

13 Turning waste into a resource London Waste and Recycling Board: 84m three year fund with strong pipeline 3 year Recycle for London campaign including on-thego recycling, reduction and reuse Waste Strategy and London Plan: New targets coming in Food Waste to Fuel Alliance: 5 demonstration projects RecycleBank and similar approaches: Aiming for London pilots in

14 Main programmes Making London greener, cleaner and more civilised Turning London s waste into a resource Delivering a Low-Carbon London Moving to a low-emission transport system 14

15 Key facts London s carbon footprint: ~45 million tonnes/year. Roughly 40% domestic, 40% commercial and public sector, 20% transport Buildings are three-quarters of London s emissions, and 80% of London s buildings will be around in ,000 London homes have a low standard of protection against flooding Significant urban heat island effect expected 15

16 Low-Carbon London (I) Re:Fit (Building Energy Efficiency Programme): UKwide OJEU framework; 60 organisations in pipeline Re:New (Homes Energy Efficiency Programme): 10,000 homes underway, ,000 by 2012 Insulation Building management technologies New build: introducing new London Plan requirements Cooling equipment Low carbon heating 16

17 Low-Carbon London (II) Decentralised energy funding: Targeted investment in specific projects London Heat Portal and energy masterplanning: Underway across London; to include waste and electricity Low Carbon Zones: 10 Zones up and running 17

18 Low-Carbon London (III) Adaptation Strategy: Shift in focus to delivery including neighbourhood flood planning and water efficiency retrofits JESSICA/ London Green Fund: 100m+; up and running 2010 Low-Carbon Economy: Specific action plan for London; launching late spring 2010 Green Enterprise District in the Thames Gateway: Prospectus coming out late spring

19 Main programmes Making London greener, cleaner and more civilised Turning London s waste into a resource Delivering a Low-Carbon London Moving to a low-emission transport system 19

20 Key facts London has a far lower transport carbon footprint than most comparable cities Nearly 30 million trips per day in London Major opportunity to address air quality and CO2 at once Mode shift and low-emission vehicles are both needed 20

21 Transport Bus fleet: All new buses hybrid from 2012 Cycling revolution: Bike hire scheme July 2010 Electric Vehicle Delivery Plan: Including over 7,000 EV charge points in next 3 years Underground green power LED lighting: Traffic light conversion starting

22 Final points Energy efficiency, waste and DE are the 3 biggest carbon reduction opportunities for London Unprecedented levels of funding from GLA, but valley of death risk Greater leverage already in place but needs to be expanded 22

23 Leading to a Greener London GLA environment programme May

24 LWARB s Role Andy Holdcroft: Chief Operating Officer 24

25 LWARB Service Offering Financial Support Brokerage and project development support Best practice co-ordinator 25 25

26 Mayor s preferred approach 26 26

27 What is the Capacity Gap? Note: figures in tonnes 000s Wet AD Dry AD / MBT / RDF Thermal MRF Total Composting AD Production Treatment (RDF) ,590 3, (380) 550 2,370 4, ,020 1, ,730 3,440 9,

28 Projects funded to date Recycle for London - Sep m Trinity Oct k Recycle for London - Nov m Fareshare Mar k Bioregional Apr k 28 28

29 Allocation by Treatment Type Average Capacity ('000 tonnes) Total Capacity delivered ('000 tonnes) LWARB Funding ( 000) Number of facilties Total cost ( 000) MRF ,000 12,000 AD ,000 6,000 Thermal ,000 7,273 MBT ,000 2,727 Total ,000 28,000 Total capacity delivered more important than numbers LWARB require 4:1 leverage on projects below circa 25m and 10:1 for projects above 25m Number of facilities derived from gap need (rounded to nearest whole facility) 29 29

30 How will the capacity gap methodology influence LWARB s activities LWARB will continue to look at London s waste holistically, to merge the management of municipal and C&I waste where synergies exist LWARB must successfully facilitate the delivery of the viable proposals from its portfolio create a pool of around 20 projects to deliver the Business Plan Final call for projects expressions of interest by end of June

31 Summary of large scale infrastructure projects in pipeline Organisation Technology Location (borough) Waste treated (tpa) Est. operational date Amount from LWARB: total cost ( million) Grant/Commer cial 31 AD 46,000 End 2011 Grant / Comm. AD 30,000 Start 2012 Grant AD 50,000 End 2011 Comm. / Grant AD 15,000 End 2011 Commercial AD 55,000 End 2011 Grant AD 30,000 End 2011 Grant AD 20,000 End 2011 Commercial RDF 110,000 Mid 2011 Commercial Reprocessing - 50,000 Start 2011 Grant / Comm. plastic Reprocessing - 17,000 End 2011 Commercial plastic Aerobic 36,500 End 2010 Commercial Digestion Pyrolysis 200,000 Mid 2011 Commercial Pyrolysis 90,000 Start 2012 Commercial Pyrolysis 80,000 Start 2012 Grant / Comm. Complex MRF / 100,000 Start 2012 Commercial Pyrolysis Complex MRF 140,000 Start 2011 Commercial 31

32 LWARB and the London Green Fund Complementary rather than competing funds Potential partnering arrangement Independent evaluation process and criteria Both funds can contribute to the same project London Green Fund targets commercial returns LWARB fund fill the gap and supports commercial returns 32 32

33 33

34 EIB supporting the London Green Fund Simon Brooks Vice President European Investment Bank 34

35 EIB role EIB is the principal JESSICA promoter and Holding Fund Manager in the UK and across the EU including London Overview of EIB JESSICA Task Force Holding Fund What is JESSICA? Urban Development Fund Loans, equity or guarantees Project Portfolio 35

36 A growing commitment to the sector Our role in the London Green Fund is part of a wider commitment to the environmental sector in London and the UK Alignment with the Bank s objectives: Protecting and Improving the Environment and Promoting Sustainable Communities Supporting Sustainable, Competitive and Secure Energy EIB funded over EUR 25 billion of projects in the environmental sector in % of total lending 36

37 Some examples Wide ranging support to sector (a) (b) (c) Project development / technical assistance ELENA and Covenant of Mayors Infrastructure fund investments Large scale public / private partnerships Greater Manchester Energy From Waste CHP plant completion date

38 London Green Fund Session I Q&A

39 London Green Fund Frank Lee - Head of Holding Funds and Advisory, Northern Europe, EIB Steven Henderson UK Holding Fund Manager, EIB

40 Waste Urban Development Fund Procurement Frank Lee and Steven Henderson JESSICA division European Investment Bank 40

41 What will the waste UDF invest in? Projects must be part of an Integrated Plan for Sustainable Urban Development, which for the waste UDF is both the London Plan and the Mayor of London s Municipal Waste Management Strategy Projects must involve the establishment of: value adding re-use, recycling and/or reprocessing facilities waste to energy facilities; and/or other facilities displacing fossil fuel such as waste to fuel Projects must involve capital asset development / construction / expansion not general waste operations 41

42 Waste UDF structure European Commission LDA LWARB London Green Fund (EIB fund manager) 35m investment Private sector pari passu co-financing Waste UDF Other UDF(s) Project level repayable investment (equity/debt) Project Project Project Project Urban Project level public & private additional financing 42

43 Some key points Key date 31 December 2015 UDF expected to work with LWARB to identify coinvestment opportunities Closed ended structure; fixed life expected circa 10 years; all capital and returns paid back to LGF Management fee Expectations of 2% p.a. as benchmark during investment period, and less thereafter 43

44 Response Requirements Elements of the evaluation process Stage 1 (by 4 June): Provide a declaration of your suitability (including FSA authorisation) Illustrate credible experience Stage 2 (by 13 August, only after invitation): Provide an Offer (in the form of a business plan) showing: Governance and legal structure (including team) Investment strategy Sourcing of co-finance Management fees 44

45 EIB CONTACT INFORMATION Clarification questions for stage 1 in writing only by Tuesday 25 May Isabelle Rei (Procurement Officer) European Investment Bank , Boulevard Konrad Adenauer L-2950 Luxembourg fax: EIB.ASA@eib.org 45

46 London Green Fund Thank you for attending.