An £18m fund that aims to help North East companies create jobs in the green economy has been launched - but the political leaders behind it admit they wish they could do more.
Businesses, public sector organisations and community groups in Newcastle, Northumberland and North Tyneside can now access grants, loans and equity investment from the North of Tyne Combined Authority’s Green New Deal Fund.
The scheme - whose name reflects other global attempts to kickstart the green economy - will run for the next four years, with a maximum investment of £2m for each project.
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Targets for carbon reduction have been set for money invested, with the fund also aiming to create new jobs and develop skills in low carbon industries.
North of Tyne mayor Jamie Driscoll and Newcastle City Council leader Nick Forbes said they would have preferred a larger fund, but hoped the scheme could still help companies develop new projects and make the area a leader in the green agenda.
It is hoped that grants and loans from the fund could “de-risk” environmental projects for local companies and build on the North East’s position as a leader in sectors of the economy linked to addressing climate change.
Mr Driscoll said: “If the question is ‘could we do more with more money?’ then absolutely and that’s something that Nick and I, and the rest of our cabinet, spend most of our week trying to get over to central Government.”
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Coun Forbes said: “Urban areas are having to compete with each other for small amounts of money from Government to address this problem. That doesn’t seem to me like a terribly sensible approach. “In Newcastle we know that we’re going to need somewhere near £5bn of investment to get us halfway towards net zero by 2030. £18m is not a large amount in that context, but what it enables us to do is to start to increase the gravitational pull of this place for further investment.
“If we can help businesses grow through the Green New Deal investment fund then that message will spread, people will come and have a look at what’s going on and think about investing here too. That’s the grand plan.
“Hopefully what we can do is not just invest directly in businesses to generate an economic return but, by doing so, create a stronger narrative that this is the place to be, this is the place you must be, if you’re interested in net zero and tackling the climate crisis.”
The green fund will be delivered in partnership with Amber Infrastructure, a specialist infrastructure investment fund manager with a track record in the 海角视频 low carbon market, having already deployed over £270m into low carbon infrastructure projects in the 海角视频.
An initial £9m has been provided by the North of Tyne Combined Authority, with Amber in its role as fund manager tasked with sourcing an additional £9m investment.
For every £4,525 invested, each project must save one tonne of carbon dioxide per annum, while energy efficiency projects must create a 10% reduction in energy costs. Projects awarded funding will also be encouraged to support local supply chains, helping to create new jobs in the sector.
Companies will be able to get loans, grants or equity investment towards environmental projects, with money paid back being re-invested into the scheme to add to its potential benefits.
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Giles Frost, chairman of Amber Infrastructure said: “The GNDF is an exciting new fund that Amber is delighted to be delivering in partnership with the North of Tyne Combined Authority. This fund will help to support growing businesses and develop talent in the low carbon sector, whilst also acting as a catalyst for inward investment in the region. The fund’s launch is very timely, following COP 26 and builds on Amber’s success in managing low carbon and energy efficiency focused funds elsewhere in the 海角视频.”
Business interested in applying to the Green New Deal Fund should visit www.greennewdealfund.co.uk.