The Mayor of London has today (March 21) declared a 70 million waste and recycling infrastructure funding pot known as the Foresight Environmental Fund officially open for business.
The fund, which is being led by private equity firm Foresight Group, was officially launched in front of an audience of senior financiers and industry figures at Londons Stock Exchange in the City of London. The kick-off coincides with the launch of Climate Week.
Developed with a cash injection from the London Mayors Green Fund, as well as match funding from European Commission and European Investment Bank, as well as financial input from the London Waste and Recycling Board.
The fund is intended to combine public and private investment to boost waste and recycling infrastructure development in the capital.
The 70 million for the fund is drawn from 35 million investment from the London Green Fund, with the remainder being raised by Foresight through local authority pension funds. Foresight intends to leverage an overall total of 200 million through private equity and pension funds.
Launching the fund, Mayor Boris Johnson said: Londons existing lead as a low carbon financial centre means we are well placed to grab more than our fair share of the global market in associated goods, services and skills.
This multi-million pound fund to provide greener waste and recycling facilities is a great example of the type of innovative thinking that will stimulate low carbon economic growth for the capital.
Fund
The money from the Foresight Environmental Fund will be used to finance waste and recycling projects. Priorities of the fund are said to be the funding of waste-to-energy projects, such as biomass, and also food waste and plastic treatment facilities. The Fund will primarily target the development of merchant facilities as the waste and recycling market in the capital matures over the next five years.
Matt Taylor, partner at Foresight Group, said: We have identified a number of projects already for the fund but are actively encouraging other waste and recycling companies to come to us with proposals.
We believe that recycling and recovery are one of the most sustainable sectors of Londons industry and these projects can become firmly embedded in Londons economy, by generating secure local employment and long term financial and environmental benefit.
LWaRB
The London Waste & Recycling Board – a statutory body designed to steer waste and recycling policy in the capital provided 18 million towards the Fund for its initial 35 million start-up costs.
James Cleverly, chair of the Board, said: LWaRB are delighted to have been pivotal in establishing the waste and recycling element of the London Green Fund. This new and exciting fund will give a massive boost to Londons low carbon economy.
Sevenoaks-based Foresight Group has played a role in developing Londons recycling capacity in recent years, with the company providing funding to both Closed Loop Recycling and 2K Manufacturing.
The Foresight Environmental Fund will operate as part of the London Green Fund, which is a 100 million holding fund managed by the European Investment Bank, with contributions from the London Development Agency, the London Waste & Recycling Board and the European Regional Development Fund.
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