About Local Climate Bonds (LCBs)

Local Climate Bonds (LCBs), also known as Community Municipal Investments (CMIs), are an innovative green finance mechanism that enable Local Authorities to raise citizen and institutional borrowing to fund environmental and social impact projects. According to UK government statistics, 82% of all UK greenhouse gas emissions are within the scope of influence of Local Authorities, and since 2019, over 320 councils (75%) in the UK have declared a climate emergency and carry the responsibility of delivering the net-zero agenda.

Like the Green Gilt, LCBs are Green Loan Principles-aligned and have already funded projects including renewable energy sources, rewilding and biodiversity upgrades, electric vehicle charging points, school retrofits, and community climate funds.

Local Climate Bond (LCB) campaign

The first LCBs were developed and launched by Abundance Investment Ltd in 2020 to empower councils to gain long-term access to lower-cost funding through crowding in private investment from citizen investors, a new and untapped source of capital.

The GFI supports the development of the LCB market through a campaign which: raises the awareness of innovative place-based green finance products, informs councils of the optimal LCB issuance process, and convenes public-private decision makers. In November 2023, the campaign launched the LCB Toolkit which is driving pipeline development by guiding Local Authority members and officers through the optimal LCB issuance process. As a result of this campaign, 14 pioneering councils have launched LCBs, mobilising over £11.5 million of private capital for much-needed local environmental and social impact projects.

Almost 3,000 investors have participated in LCBs so far, receiving a return on their capital for supporting climate action, while the local authority can engage their local community on their net-zero transition.

Sign the Local Climate Bond pledge

Join the growing list of Local Authorities committed to launching a Local Climate Bond, or related municipal climate investment by signing the Local Climate Bond pledge.
Efficiently finance Net Zero projects in your local area, while communicating action, demonstrating leadership and engaging your residents with your climate emergency plans.
Work with us to find joint opportunities to showcase the impact of the Local Climate Bonds Campaign in your community.

Get in touch to know more Download the LCB Pledge here Case Studies

Committed Councils

Signatories to the LCB pledge

Past issuances

Live issuances

Warrington – In Warrington, the funding by the 527 investors was put towards the development of a 20MW ground mounted solar system with the addition of 40MW of battery storage. See here for the relevant press release from the council on the issuance.

Cotswold – In Cotswold, the investment will focus on helping residents go green with public EV charging points, and upgrades to buildings to reduce the council’s own emissions. See here for the relevant press release from the council on the issuance.

Royal Borough of Greenwich – See here for the relevant press release from the council on the Greenwich Green Investment Scheme.

Oxfordshire County Council – In December 2024, Oxfordshire County Council launched their first LCB tranche. See here for the relevant press release.

Bristol City Council – In March 2025, Bristol City Council launched their first LCB tranche. See here for the relevant press release.

Testimonials

"The delivery of the bond has been a real success for us and has enabled the Council to not only achieve an engaging way of utilising a cheaper form of borrowing for our net zero ambitions, but we’ve also leveraged in further donations to our successful wildflower verges projects to enhance biodiversity in the local area."

Ross Mackinnon

West Berkshire Council’s Executive Member, Finance and Economic Development

"This gives people a fantastic opportunity to make a positive contribution towards a carbon neutral future while providing them with a financial return and deeper engagement with one of Britain’s most environmentally-focused local governments."

Russ Bowden

Leader, Warrington Borough Council

"Tackling the climate emergency and creating a cleaner, greener, healthier borough is a leading priority for the Council, but it’s always been clear that we can only achieve that with the support of local people. We now look forward to using this £1 million to fund a range of exciting initiatives that will make a real, tangible difference to people across our borough."

Rowena Champion

Islington Council’s Executive Member, Environment and Transport

"Working with Cotswold residents, we aim to make the Cotswolds cleaner, greener and healthier. This is the first investment of this type to be issued by the Council and the first in the county of Gloucestershire. Residents can put their money to work to make a real difference towards delivering the Council’s 2030 vision to cut emissions and create safer, cleaner streets across the District."

Joe Harris

Leader, Cotswold District Council

Our Supporters

The Green Finance Institute is not in any way affiliated with any finance providers listed on this webpage, and makes no statement as to the suitability or sustainability of any financial providers or any specific financial products. Finance providers listed on this webpage are listed solely to reflect the fact they are offering services related to the issuance of Local Climate Bonds. The Green Finance Institute does not recommend any particular financial providers or financial product. Other finance providers are available.

Local Authority Decarbonisation

About Local Climate Bonds (LCBs)

Local Climate Bond (LCB) campaign

Local Climate Bond (LCB) campaign

Sign the Local Climate Bond pledge

Sign the Local Climate Bond pledge

Committed Councils

Testimonials

Further reading

Our Supporters