A regional net zero impact investment fund for the West of England

Background

The West of England Mayoral Combined Authority Committee has announced a £100m Regional Net Zero Impact Investment Fund that will invest into net zero projects and businesses. The investments are expected to supply up to 36,000 homes with renewable energy and save households £6m on their energy bills over the next 12 years. The West of England Mayoral Combined Authority (MCA) intends to act as a cornerstone investor by committing £10m of capital, plus an estimated £1m in setup costs. It aims for the fund to attract a further £90m of private capital for projects that can generate growth and create jobs in net zero industries. Alongside the Fund, Bristol Bath Regional Capital (BBRC) will provide an Investment Advisory Service, free at the point of use for two years, to support regional businesses and organisations with investment readiness. Beneficiaries of BBRC’s service are expected to feed the Impact Fund’s pipeline. 

The role of the National Wealth Fund

To support the Impact Fund’s development, we provided advice on its setup, to support management of key risks and aid successful delivery. We delivered three workshops looking in depth at objectives, project evaluation, management of proceeds and reporting requirements. We also explored procurement options and benchmarked the Impact Fund against similar funds with respect to size, target projects/investees, risk, types of capital invested and performance to date where available. Our advisory engagement also covered governance and an approach to how roles and responsibilities could be defined to avoid unforeseen gaps or inefficient duplication of work. This engagement was the second piece of work we have delivered for the West of England MCA, strengthening our relationship. 

Stuart Leslie, Director - Local Authority Advisory & Lending, National Wealth Fund, said:

NWF are delighted to have supported the MCA in bringing forward this innovative approach to attracting investment into the West of England region. The fund will act as a catalyst for capacity building and project delivery to support the region’s net zero ambitions and we wish the MCA every success in enabling these positive outcomes.