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Sustainability Finance

Businesses and governments alike are realising that there can be significant financial and economic returns in going Green.  As well as achieving reductions in carbon emissions, financial and strategic business goals can also be served: hedging against potential future increases in energy costs; diversification of energy sources; energy security; reduced environmental taxes; future-proofing against environmental regulation and the effects of climate change; brand enhancement and increased corporate social responsibility.

In order to achieve these benefits, up front investment is often required.  The UK government estimates that £200bn is needed for the energy system alone over the period to 2020.  Our financial advisory team has extensive experience in modelling potential investments and designing financing structures which enable our clients to raise external finance from banks and equity providers as well as making best use of the public sector finance and subsidies where appropriate. 

Our services 

Energy Efficiency  
Up front finance can often be raised where returns are based on future cost savings.  We can assist in the implementation of Pay As You Save (PAYS) schemes by helping our clients to develop robust financial models and sensitivity analysis of the up front cost and expected future savings in order to help them secure finance.  The Green Deal is intended to be the largest PAYS scheme in the UK, encompassing public sector, private sector, domestic and non-domestic properties across the UK.  We have been advising clients in relation to the development of the Green Deal and design of suitable financing structures since the inception of the policy. 

Where Energy Service Companies (ESCOs) seek to be remunerated for their services based on energy savings achieved, we can help our clients to develop a robust shared understanding of the potential savings, subsidies and risks to be shared through their commercial arrangements and financing structures.

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Micro Generation  
Property owners and occupiers are increasingly turning to mirco generation as part of their strategy to reduce carbon emissions and costs.  For technologies such as ground source heat, air source heat, biomass and solar energy, financiers may be willing to provide asset finance secured on the micro generation kit.  In addition, there is the potential to raise finance taking into account future revenue streams from the Renewable Heat Incentive and Feed in Tariff.  We can help you to put in place commercial structures which provide asset security to financiers while allowing appropriate sharing of the commercial the risks and rewards of the project between financier and client. 

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Renewables and Large Scale Clean Energy Generation  
We have advised clients in respect of large scale renewable energy projects including onshore wind, offshore wind and hydro power.  In addition, we are advising clients on the financing of cutting edge of new clean energy generation including Carbon Capture and Storage.

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Subsidies and Public Sector Finance  
We have extensive experience of working with public sector clients in appraising potential investments and running competitions for grant funding in the energy and renewables space.  We can also assist private sector clients in understanding the public sector finance landscape.  We have experience working withUK Green Investments (the forerunner to the Green Investment Bank), the European Investment Bank and Local Authorities as well as advising in relation to subsidy schemes such as the Renewable Heat Incentive, Feed in Tariffs and the Energy Company Obligation.

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Climate Change Mitigation  
Protecting the public and the economy from potential effects of climate change such as flooding, coastal erosion, poor air quality and poor water quality has traditionally been the domain of government.  The cost of remedying the damage done by acute instances has tended to fall on government and insurers.  Spending on the guarded against by government will require investment.  However, the tide is turning and governments are increasingly looking to local communities to provide their own defences and remedies.  We have a proven track record in designing innovative financial and commercial structures at local and national levels.

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Useful links

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  • Sustainability publications

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