Community Municipal Investment (CMI) / Local Climate Bonds (LCBs)
Community Municipal Investment (CMI) / Local Climate Bonds (LCBs)
A Community Municipal Investment (CMI), including Local Climate Bonds (LCB), is a type of regulated investment that local authorities can use to finance specific decarbonisation projects at a lower cost. This funding stream allows local residents to invest in their community through a crowdfunding platform, starting from £5 for green bonds. By investing in CMIs, residents provide a new source of capital to their local authority. LCBs were originally developed by Abundance Investment Ltd in 2020 and are hosted and administered by Abundance. More information can be found through the Green Finance Institutes Local Climate Bond campaign, which raises awareness of LCBs among councils
Status: Open
About
Category: Community schemes
Eligible applicants:
- Local authority
Terms
Minimum amount: (not specified)
Maximum amount: (not specified)
Return requirement: Yes
Maximum loan term: 5 years
Rate: Below Public Works Loan Board (average 20-30 basis points)
When delivered via the Abundance Investment platform, LCBs are priced at least 20-30 basis points below Public Works Loan Board prevailing certainty rates for a five year term.
Community Municipal Investments (CMI) provide an opportunity to engage local communities while diversifying sources of funding. To deliver a CMI, councils can partner with Abundance. West Berkshire, Warrington, Islington, Camden, Cotswold, Telford & Wrekin, Westminster, Lewisham and Hammersmith & Fulham raised an average of between £0.3 – £5m with an investor return of 1.2% – 4.85%.
Eligibility
Eligible projects:
- Non-domestic fabrics and energy efficiency
- Other
- Renewables (PV)
Please note: the Green Funding and Finance Finder may not be absolutely comprehensive. We strongly advise you to confirm all details directly with the relevant fund managers.
Green Funding & Finance Finder
Find more green funding and finance opportunities for your net zero project in the Green Funding & Finance Finder.
Use the tool