Achieving Net Zero will require significant investment in capital-intensive programmes. However, many Local Authorities face challenges such as limited resources and fragmented guidance when it comes to financing these projects.
To help address this, Innovate UK (IUK) commissioned City Science, in partnership with Bankers without Boundaries, to provide Net Zero Finance and Investment Advisory services for IUK’s £60 million Net Zero Living Programme. This programme supports Local Authorities in exploring innovative approaches to overcoming non-technological barriers to achieving Net Zero.
As part of this commission, City Science has been tasked with delivering several insights. One of these is Unlocking Climate Capital: A Business Case Framework for Local Authority Net Zero Projects. This work introduces the Net Zero Finance Options Framework, which builds on the principles of HM Treasury’s Green Book. It provides a structured process to help Local Authorities prepare for the Green Book options process, strengthening their ability to develop robust business cases and make informed financial decisions.
What is the Net Zero Finance Options Framework?
The framework has been developed to align with the HM Treasury Green Book option process, providing a structured preparation procedure that improves transparency, comparability, and decision-making.
Key features of the insight include:
- Explanatory and simplified use of established principles and tools such as Multi-Criteria Decision Analysis, Whole System Finance, and the Green Book.
- The Net Zero Finance Options Framework: A five-step process that guides authorities from defining their role through to the Green Book appraisal stage.
- Practical resources, including guidance, workshop structures, and recommended tools to embed the framework into Net Zero programme delivery.
Why it matters
By adopting the Net Zero Finance Options Framework, Local Authorities can:
- Maximise value for money by improving cost efficiency
- Improve resilience by reducing funding risks
- Enhance decision-making through better understanding of finance options
- Build stakeholder confidence with clearer and more transparent appraisal processes
Ultimately, this framework strengthens a Local Authority’s capability to appraise investment options, reduces financial risk, and builds the confidence needed to mobilise capital at scale.
Upcoming Webinar
Join Laurence Oakes-Ash, CEO of City Science, as he delivers an Innovate UK webinar on the Business Case Framework for Local Authority Net Zero Projects.
Thursday 25th September
Sign up here: https://lnkd.in/e-MSpYbg
This is an opportunity for Local Authorities, policymakers, and stakeholders to explore how the framework can transform investment planning and accelerate the transition to Net Zero.
Read the document in full
To read the document in full see below.
Unlocking Climate Capital: A Business Case Framework for Local Authority Net Zero Projects (PDF)