West Berkshire Council launches climate bond scheme with Abundance Investment to help hit carbon neutral target
Project raised nearly £200,000 in first day
West Berkshire Council has launched the UK’s first Community Municipal Investment (CMI) offering residents and community groups a way to invest directly in a greener future for the district.
The climate bond scheme launched yesterday (Thursday) and £197,000 of the £1m project has already been raised.
The launch took place at Greenham Common, where a council-owned building has been the first in a series of solar panel installations across the district.
The council unanimously declared a climate emergency in July last year, and made a commitment to making West Berkshire carbon neutral by 2030.
A CMI, which will support the council's environment strategy, is a bond or loan mechanism issued by a council directly to the public.
It will be provided in partnership with online crowdfunding platform Abundance Investment, which is regulated by the Financial Conduct Authority.
CMIs can be used to supplement, diversify or replace sources of borrowing to fund specific infrastructure projects, or to refinance existing debt.
The council will use its CMI to finance green projects in the district, such as installing solar panels at a building on Greenham Common and five other buildings, including two local schools.
West Berkshire’s executive member for finance and economic development, Ross Mackinnon (Con, Bradfield), said the move was a "win, win, win" and formed "a triangle of happiness".
He said the bonds offered a cheaper borrowing rate than the Government, investors would get a decent return, and the CMI would be a much more attractive low-risk investment because of the turmoil in the equity market.
He said: “It is very exciting to be the first council to offer CMIs to our residents and community groups. They are an innovative way to put residents’ money to work to help us build back greener after the pandemic.
“It is even more exciting to see green projects already coming to life, with installations already complete at Greenham Common, Phoenix Centre and at the council’s offices in Market Street, Newbury.
“Communities investing directly with us will provide us with a cheaper alternative to conventional sources of funds reducing the overall cost of borrowing to all taxpayers across the district as well as making a positive contribution toward our target to be carbon neutral by 2030.”
Executive member for the environment Steve Ardagh-Walter (Con, Thatcham Colthrop and Crookham) said: "This is great news for West Berkshire and a real win/win in the drive towards carbon neutrality.
"A greener future is something that everybody wants, and this is an opportunity for local people to be at the fore of making that happen – I hope that as many people as possible will participate.”
Abundance Investment co-founder and managing director Bruce Davis, said: "After many months of development, there is real excitement at the UK's first Community Municipal Investment going live.
"It’s an innovative way to democratise finance and people want to mobilise their money to help their local council build back better and greener. West Berkshire are leading the way and we hope many other councils in the UK will follow."
The minimum investment that can be made is £5 and the scheme is open until September 15.
Find out more at https://www.abundanceinvestment.com/invest-now/west-berkshire-2025
