Bank commits £15 million to support local authority net-zero projects

Unity Trust Bank, which is headquartered in Birmingham, has committed £15 million to support local authorities in accelerating their net-zero projects.

The significant funding, co-invested alongside citizen investors, will support the growth of the green municipal investment market - also known as Local Climate Bonds – and help local authorities to deliver critical climate projects in their communities.

With an initial £15 million commitment, Unity Trust Bank has become the first institutional investor to back Local Climate Bonds.

Developed by Abundance Investment and supported by the Green Finance Institute (GFI), Local Climate Bonds enable local authorities to raise capital directly from private investors – both citizens and institutions – giving communities a tangible stake in local climate action.

This approach enables local authorities to work with their communities to deliver practical local projects, including renewable energy schemes, building retrofits, green infrastructure initiatives, and nature adaptation schemes such as rewilding and tree planting.

Unity’s mission is to contribute to a better society. Its support of Local Climate Bonds strengthens the bank’s relationship with the public sector in delivering positive social and environmental impact, through localised solutions to the climate crisis.

According to the Local Government Association (LGA), 82 per cent of all greenhouse gas emissions fall within the scope of local authorities’ influence, positioning them as key actors in the country’s transition to net zero.

Since 2019, over 230 local authorities (75 per cent) in the UK have declared a climate emergency and committed to delivering net-zero ambitions in their communities.

Local authority green investments deliver a scalable solution for citizen-led financing of climate initiatives, which are making a difference to cities and communities across the UK.

 Joshua Meek (pictured), chief impact officer at Unity Trust Bank, said: “We believe investing this way in councils provides the ideal platform for communities and organisations like Unity to work together and support local solutions to climate change, and we would encourage other impact-driven investors to consider how they too can support the vital work of grassroots authorities.

“As a ‘double bottom line’ bank committed to delivering sustainable returns alongside real benefits to society, municipal investing supports inclusive economic growth, sustainable solutions to climate change and a positive investment opportunity for Unity.”

Unity’s 2024 financial results reported record customer balances of £1.7 billion, up 10 per cent from 2023.

More than half (50.5 per cent) of lending was committed to areas of high deprivation, helping to support organisations that are making a real difference to communities most in need.

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