West Berkshire climate bond scheme nearing £1m target

Community Municipal Investment (CMI) with Abundance Investment closes next week

A CHANCE to invest in a climate bond scheme to help West Berkshire build back greener after the coronavirus pandemic ends next week.

The district council launched the first Community Municipal Investment (CMI) in July, developed by ethical investment platform Abundance, and has raised more than £800,000 of its £1m target.

The scheme closes on October 15.

Solar panels have been installed on five buildings across the district, including schools, leisure and care facilities and the council’s Market Street offices.

Aldermaston Primary School and The Willink in Burghfield Common are generating their own green electricity thanks to panels funded by the CMI and installed over the summer, saving money and saving carbon.

The Willink headteacher Peter Fry said: “The Willink School's motto is ‘Village school, global outlook’.

“This project is a wonderful example for our students and the community of thinking globally, acting locally.

“On top of that our energy costs are reduced, so positively helping the school budget, and installation was fully glitch free.

“I cannot recommend the project highly enough.”

Aldermaston C of E Primary School headteacher Melanie Higgs said: “We're delighted to be part of this project.

“Our children are passionate about protecting the environment so the opportunity to reduce our carbon footprint by generating green energy was very welcome.

“The solar panels were installed over the summer and we can’t wait to see how much energy we can produce and how this will benefit the school’s finances.”

West Berkshire Council declared a climate emergency last year and he green bond is one of the first of its Environment Strategy, and aims to make the district net zero carbon by 2030.

The funding surge has also helped other schemes within the strategy.

These include funding projects with Berkshire, Buckinghamshire and Oxfordshire Wildlife Trust (BBOWT) to protect and enhance the natural environment, updating traffic lights to LED and a scheme for cycleways to promote sustainable transport.

It has also allowed the council to deliver better value to its residents by reducing its overall cost of borrowing.

West Berkshire’s executive member for finance Ross Mackinnon (Con, Bradfield) said: “We’re delighted that the CMI has proved so popular and will go a long way to helping the council achieve its environmental objectives.

“I’m very proud that West Berkshire is the first council in the UK to launch this innovative investment.

“The bond has allowed us to reduce our borrowing costs by 0.5 per cent, saving money for the council and for our residents while also bringing environmental benefits to the district.”

Abundance Investment co-founder and managing director Bruce Davis said: “We’re very pleased by the enthusiastic response we’ve seen from local people.

“West Berkshire’s green bond bucks the trend of low-risk investments which have seen interest rates fall to all-time lows following the announcement of cuts to returns by National Savings and Investments.

“It offers investors the ability to lock in interest rates at 1.2 per cent for five years, as well as knowing their money is working hard to help the district reach net zero.”

The West Berkshire CMI offers low-risk returns of 1.2 per cent per year over a five-year term and with a minimum investment of £5.

The CMIs are arranged by Abundance, which is regulated by the Financial Conduct Authority.

To find out more, visit https://www.abundanceinvestment.com/west-berkshire