Eligible green projects
For our investments to align with the Green Loan Principles, the money borrowed by the council must go towards real, local, green projects known as eligible green projects.
Eligible Green Project categories
The green project categories we use are part of the same framework established by the UK Government for the country's Green Gilt and Green N&SI savings products. They are derived from the categories laid out in the ICMA Green Bond Principles.
Under our Green Finance Framework, each project funded by one of our council investments must meet the definition of one of the categories. The council provides a breakdown for each investment on what the money was used for, and Abundance monitors and verifies that the money has gone towards projects that meet the criteria
But what are the categories, and what sort of projects can be included?
Renewable Energy
This category includes many familiar green projects that involve delivering new green energy capacity to reduce reliance on fossil fuels and cut carbon emissions. Projects might include those which reduce the council's own emissions - such as installing solar panels on buildings it owns - or it might be generating renewable energy for social housing or other community buildings such as schools. This category also includes renewable heating initiatives, such as heat pumps and district heating networks.
Energy Efficiency
We are all very familiar with energy efficiency measures - whether it is improving the efficiency of lighting systems, or insulating leaky buildings, it is an essential element of climate action. This category covers schemes like this, that reduce energy use - both electricity and heat - in buildings either used or owned by the council. And, because councils have such wide-ranging responsibilities in our communities, it can also span other, more unexpected areas - such as pool covers to cut energy use in leisure centres.
Clean Transportation
This category includes schemes that help residents get around in greener ways. That might include providing public EV charging infrastructure, or upgrading facilities to encourage cycling and active transport. It also covers the councils' own vehicles, so funds might be used to convert council vehicles to run on cleaner fuels.
Pollution Prevention and Control
Our councils have essential responsibilities to help keep our communities clean. That includes promoting waste prevention and reduction, encouraging recycling, and implementing schemes to reduce air pollution in our towns and cities. Any project that is seeking to reduce pollution of air, water and the broader environment, as well as projects that support the circular economy, can fit into this category.
Climate Change Adaptation
Adaptation is becoming an increasingly important element of councils' work, particularly in urban areas. This category includes schemes that help residents adapt to climate change, and projects that develop community infrastructure to deal with more extreme weather events - such as flood management, and greening projects to provide heat protection and resilience.
Living and Natural Resources
It is essential that councils work to protect the natural resources they are responsible for. Whether that is parks and public spaces, or even more mundane areas like roadside verges, councils need to ensure they promote biodiversity and ensure they take good care of the living resources in their care. This category covers greening projects, such as development of parks and green spaces, as well as schemes that promote biodiversity, on land and in the water.