News
3Ci and London Borough of Hounslow announce collaboration to progress Hounslow’s Net Zero Neighbourhood Programme
By the 3Ci Team
Net Zero collaboration facilitator 3Ci and the London Borough of Hounslow are set to embark on further development work of Hounslow’s Net Zero Neighbourhood programme.
The joint project aims to further Hounslow’s mission of creating an actionable investment case for their Net Zero Neighbourhood which can be used to engage with investors to secure private funding to enable a reduction in borough-wide emissions.
About Net Zero Neighbourhoods
3Ci (Cities Commission for Climate Investment) developed the Net Zero Neighbourhood model to integrate local Net Zero projects into attractive investment propositions, creating scale and long-term certainty for investors by joining up the different types of assets that are important to decarbonisation.
This includes transforming transportation, energy, housing and waste services in a coordinated way, using a blended finance model capable of attracting capital from banks, pension funds and other institutional investors. Importantly, 3Ci’s remit includes a programme of technical assistance and capacity building to ensure projects are of investment grade.
3Ci published the UK’s Net Zero Neighbourhood Prospectus featuring 40 locations in December 2023.
Hounslow’s Net Zero Neighbourhood programme
Hounslow has been involved in the Net Zero Neighbourhood model since its inception. The London Borough of Hounslow has submitted three areas of potential development for the Net Zero Neighbourhoods approach – Cranford & Heston, Feltham, and Hanworth. These areas were featured in 3Ci’s 2023 Net Zero Neighbourhood prospectus.
Since then, 3Ci and Hounslow have continued to collaborate on opportunities, including a Net Zero Neighbourhood site visit in November 2024 to showcase the Council’s proposed plans to private investors.
The site visit was an opportunity to share the plans and opportunities in Hounslow to transform housing estates and included a guided walk around the Feltham and Cranford areas as potential Net Zero Neighbourhoods.
Within these neighbourhoods, there will be a focus on improving energy efficiency for homes and public buildings through retrofit, and using retrofit as a catalyst for undertaking improvements in the public spaces, diversifying the functions and uses of existing green spaces, and promoting access to sustainable travel options.
Advancing the Net Zero Neighbourhood programme in Hounslow
Hounslow and 3Ci are entering the next phase of the programme to build the investment case for their Net Zero Neighbourhood.
This phase includes taking into account all the innovations required to transform the prospective area into a Net Zero Neighbourhood, from domestic retrofitting to electric vehicle infrastructure and district heating networks.
The objective is to create a comprehensive outline of the necessary interventions which can be easily presented to private investors for consideration.
Councillor Katherine Dunne, Lead Member for Climate, Environment and Transport Strategy at Hounslow Council, said:
“Our Net Zero Neighbourhood programme will help us make significant steps towards retrofitting homes to make them warmer and cheaper to run as well as reducing carbon emissions. We are delighted to be collaborating with 3Ci on this next phase of work.”
Steve Turner, Director of 3Ci commented:
“It is fantastic to see the London Borough of Hounslow continue to remain at the forefront of local Net Zero innovation. Their commitment to this project with 3Ci showcases the strength of the borough’s passion and determination to create a scalable investment opportunity to reduce its emissions.”
Find out more about Hounslow Council’s Net Zero Neighbourhood programme.
Find out more about 3Ci’s Net Zero Neighbourhood programme in our published reports.
News
3Ci and Glasgow City Council announce collaboration to progress Govanhill:
Glasgow’s Net Zero Neighbourhood pilot
By the 3Ci Team
3Ci and Glasgow City Council are delighted to embark on further development work of Glasgow’s Net Zero Neighbourhood programme.
The joint project aims to create an actionable investment case for the area of Govanhill as a pilot Net Zero Neighbourhood. This builds on Glasgow’s work to collaborate with investors to attract private funding into the city, including Govanhill’s Net Zero potential.
About Net Zero Neighbourhoods
3Ci (Cities Commission for Climate Investment) developed the Net Zero Neighbourhood model to integrate local Net Zero projects into attractive investment propositions, creating scale and long-term certainty for investors by joining up the different types of assets that are important to decarbonisation.
This includes transforming transportation, energy, housing and waste services in a coordinated way, using a blended finance model capable of attracting capital from banks, pension funds and other institutional investors. Importantly, 3Ci’s remit includes a programme of technical assistance and capacity building to ensure projects are of investment grade.
3Ci published the UK’s Net Zero Neighbourhood Prospectus featuring 40 locations in December 2023.
Glasgow’s Net Zero Neighbourhood pilot
Glasgow has been involved in the Net Zero Neighbourhood model since its inception. The area of Govanhill was featured in 3Ci’s Net Zero Neighbourhood prospectus.
Govanhill is characterised by a large volume of green spaces, as well as a dense arrangement of residential building types and tenures, and commercial units. It features as a strategic focus for housing-led regeneration in the city. Within Govanhill, there is an Economic Development area (Polmadie), showcasing a notable increase in economic activity in the region.
Govanhill was chosen as a neighbourhood for Net Zero Neighbourhoods (NZN) due to its proximity to a district heating network opportunity, as well as its diversity of built environment and demand, and opportunities for retrofitting.
Glasgow Facts:
- Population: 620,700
- Size: 110km2
- Number of Households: 300,340
- Amount of Green Space: 3,500 ha
Source: The UK Net Zero Neighbourhood Prospectus, 3Ci, December 2023
Neighbourhood of Govanhill Facts:
- Population: 45,598
- Number of Households: 17,115
- Property Type: 91% flats; 9% houses
- % of People Income Deprived: 17.77%
Advancing the Net Zero Neighbourhood programme in Glasgow
Glasgow and 3Ci are entering the next phase of the programme to build the investment case for Govanhill as a Net Zero Neighbourhood.
This phase includes considering the innovations required to transform the prospective area into a Net Zero Neighbourhood, from domestic retrofitting to electric vehicle infrastructure and district heating networks.
The objective is to create a comprehensive and compelling case for investment into the necessary net zero interventions, and to build practical and long term partnerships with private investors.
Councillor Susan Aitken, Leader of Glasgow City Council, commented:
“Innovative approaches to Net Zero can make an incredible impact on the lives of residents in neighbourhood’s like Glasgow’s Govanhill. We are firmly committed to this next phase of work with 3Ci to explore new opportunities around heating, retrofitting and reducing carbon emissions and the benefits these bring to the everyday lives of citizens.”
Steve Turner, Director of 3Ci commented:
“When it comes to exploring new paths to Net Zero, Glasgow has been a UK-leading innovator from the start. Their commitment to further developing Govanhill as a pilot case for Net Zero investment showcases the strength and determination of the Council to reach their decarbonisation targets.”
Find out more about Glasgow City Council’s sustainability commitments.
Find out more about 3Ci’s Net Zero Neighbourhood programme in our published reports.
News
2024 Wrapped: 3Ci’s Highlights of the Year
By the 3Ci Team
In just a few years, the 3Ci team (Cities Commission for Climate Investment) has driven significant advancements in supporting local government Net Zero projects, establishing ourselves as a key player in this space.
The impact of 3Ci’s work has been transformative, acting as a trusted bridge between local and central government and the private investment sector. Through our work, we have solidified ourselves as a beacon for progress in the Net Zero financing space, supporting UK places in achieving their carbon reduction targets and creating Net Zero investment opportunities. I am proud to be part of the 3Ci collective and of our achievements this year; from creating new regional investment pipelines in Scotland and South Yorkshire, to delivering investor events and roundtables for our valued members and seeing some of the projects come to life in site visits.
Thank you to our Advisory Board and Steering Group for all the work you do in furthering our mission. We also could not do this without our partners, who combined, include representation from 90% of local government. Thank you to Connected Places Catapult, Scottish Cities Alliance, London Councils, Core Cities, Key Cities, Innovate UK and everyone else who has supported our mission!
Zoe Jennings
Head of Programmes, 3Ci
2024 Wrapped: Our Highlights
In a transitional and transformative time for the Net Zero agenda, we reflect on 3Ci’s achievements over the past 12 months!
January: A deep-dive into 3Ci’s impact in Scotland
To coincide with Burns Night, we published a report that illustrates 3Ci’s collaborative efforts with Scottish Cities in advancing sustainable, Net Zero initiatives.
It provides a comprehensive overview of the partnership between 3Ci and the Scottish Cities Alliance, presenting flagship projects and broader investment prospects that underscore its influential role in shaping a sustainable future for Scotland and the UK.
Find out more in our report.
January: North East and Yorkshire Net Zero Regional Investment Forum in Leeds
On January 31st, we hosted our fourth Regional Investor event in the series. Over 100 delegates and 30 dynamic speakers converged to chart the course for green growth and sustainable transformation in Leeds.
Attendees watched panel on Public-Private Financing of Net Zero Programmess and an insightful presentation by Lorna Pimlott which delved into Net Zero investment opportunities, underlining the critical role of financing in achieving sustainable goals.
February: 3Ci’s roundtable with Bristol City Council
We had the privilege of hosting a roundtable with Marvin Rees OBE, the Mayor of Bristol, providing valuable insights for our private sector members into the Net Zero initiatives underway in the city.
Attendees included senior representatives from Arup, EY, Buro Happold and Jacobs. Our guests had the opportunity to discuss potential investment into Bristol’s climate agenda with both the Mayor and Chief Executive of the Council.
March: Launch of the 3Ci Net Zero Investment Taskforce findings at the Houses of Parliament
3Ci formed a Taskforce of investors to consider the investment case for an innovative financing model for retrofitting housing. The Taskforce included bankers, insurers, pension funds, venture capitalists, and impact investors.
Our findings were presented at the Houses of Parliament to esteemed figures, including Lord Martin Callanan, Rt Hon Ed Miliband MP, Alex Sobel MP, Rt Hon Sir Alok Sharma MP, Kerry McCarthy MP, Alan Brown MP, Prof Greg Clark CBE FAcSS, and Catherine McGuinness CBE.
April: 3Ci’s site visit to Somers Town
Organised as part of 3Ci’s corporate membership scheme, prospective members were invited to a guided tour and presentation of Camden’s Somers Town district, a future Net Zero Neighbourhood in the making.
The site visit was so successful that we are repeating it in 2025!
May: 3Ci sessions at UK REiiF, The UK’s real estate investment and infrastructure forum
As part of Connected Places Catapult’s Pavilion, we hosted a panel discussion exploring whether cities and investors truly understand each other.
This was followed by 3Ci’s “City Investment Pitches” where Leeds City Council, Sheffield City Council, Hounslow Council and Glasgow City Council pitched their city’s projects in a Dragon’s Den style affair.
June: Launching our educational courses with Apolitical
The team launched impactful training initiatives for local government officers, collaborating with Apolitical and the University of Oxford to provide courses for over 130 officers from 88 different local authorities.
The course topics were deep-dives into Climate Finance and Energy Transition.
June: Our workshop events with NatWest for London Climate Action Week
This closed-door event hosted by NatWest Group brought together key stakeholders from national and local governments, private sector investors, and other pivotal bodies.
Together, we explored practical strategies to accelerate the implementation of net zero projects at the local level.
July: The South Yorkshire Net Zero Project Pipeline – and our thoughts on engaging local communities in Net Zero
In our collective pursuit of Net Zero, in 2022 3Ci embarked on a visionary initiative – the National Net Zero Project Pipeline – to attract private sector investment into local authority projects.
The National Net Zero Project Pipeline aggregates more than 1,100 project opportunities from nearly 60 local and regional government bodies across the UK. Based on financial information provided for over 600 projects, the total value of this pipeline exceeds £40 billion.
In July 2024 3Ci published a paper which provided an overarching view of the status and strategic direction of Net Zero initiatives specifically within the South Yorkshire Net Zero Project Pipeline.
Central to the project was embedding community engagement at the heart of public and private approaches to Net Zero. As part of this work, 3Ci, alongside Connected Places Catapult, developed a guide on how to implement effective community engagement for net zero projects.
July: 3Ci site visit to Arsenal Net Zero Neighbourhood
We organised the incredible opportunity for our corporate members to visit the Net Zero Neighbourhood in Islington, specifically around Buns Hill and Arsenal.
In the Arsenal neighbourhood, the investment opportunity is focused on building a district heating network supplied by low carbon heat sources, improving the energy efficiency of homes and connecting them to the network, and installing solar panels and electric vehicle charging.
September: Our Labour Party Conference event
We hosted The BIG Net Zero Breakfast alongside the Net Zero APPG at the Labour Party Conference. This interactive session focused on Labour’s clean energy mission and how it can drive transformation in cities, towns, and regions across the UK.
September: New York Climate Action Week
We were proud to participate in another impactful roundtable at New York Climate Week, joined by the always-inspiring Marvin Rees OBE, former Mayor of Bristol.
Our Director, Steve Turner, highlighted our innovative Net Zero Neighbourhoods model at Cities Climate Finance Leadership Alliance (CCFLA)’s annual assembly in New York, alongside partners from BWB, a multi-award winning engineering and environmental design consultancy. Always a pleasure to be in the same room with such forward-thinking leaders!
November: Sheffield City Council roundtable
Sheffield City’s leadership, Cllr Tom Hunt, Kate Josephs CB and William Stewart joined 3Ci’s roundtable to make the strong case for investment into Sheffield’s decarbonisation plans.
Our roundtable, hosted by our partners Mott MacDonald and chaired by Prof Greg Clark CBE FAcSS, convened senior stakeholders and our corporate members across the ecosystem including consultants, investors and local government.
November: 3Ci site visit to Hounslow’s Net Zero Neighbourhood
3Ci had an incredibly warm reception from the London Borough of Hounslow who welcomed our members and wider network for the morning.
Invited guests visited development sites in Feltham and learned about the Council’s proposed plans to transform some of their housing estates into net-zero neighbourhoods.
Within these neighbourhoods, there will be a focus on improving energy efficiency for homes and public buildings through retrofit, and using retrofit as a catalyst for undertaking improvements in the public spaces, diversifying the functions and uses of existing green spaces, and promoting access to sustainable travel options.
December: 3Ci win bid to test Net Zero Neighbourhood approach with London Councils
We are thrilled to have been appointed alongside Living Places to design a London-wide programme to test and develop the Net Zero Neighbourhood approach to local decarbonisation in London! The project will develop a business case to underpin the eveolution of the London Net Zero Neighbourhoods cohort, which will ultimately support each place to secure investment.
Thank you to everyone who took part in 3Ci ecosystem this year!
To stay up to date with our plans in 2025 and to find out how you can get involved, be sure to follow us on LinkedIn and sign up to our newsletter.
Have a lovely break,
The 3Ci Team
News
Following COP29, how can countries catalyse investment towards climate action plans?
By the 3Ci Team
In November 2024, COP29 took place in Baku, Azerbaijan.
A focus this year has been to align climate finance contributions to global needs, as well as looking to ramp up the role of the private sector and unblock barriers to investment.
On Tuesday 12th November, Prime Minister, Sir Kier Starmer MP addressed the Summit outlining the critical role the UK must play in climate finance, as well as introducing the new target of reducing UK carbon emissions by at least 81% by 2035 compared to 1990 levels.
“This is a huge opportunity for investment, for UK business, for British workers – if we act now.”
– Prime Minister, Sir Kier Starmer MP, COP29
The Prime Minister also used the Summit to announce the launch of the new CIF Capital Market Mechanism, which could mobilise up to $75 billion in climate capital for developing countries over the next decade.
According to the Prime Minister, its listing on the London Stock Exchange cements London as a green finance capital and showcases the UK at the forefront of global climate investment.
At 3Ci, we hope to see positive outcomes from the discussions around successfully mobilising private finance towards net zero ambitions. However, we understand the challenges that face this from our own experience in the UK where our partnership includes representation from 90% of local government.
Below, we outline some of the challenges the UK faces when it comes to successfully investing in net zero, along with solutions 3Ci’s public-private coalition has been working on – which represent a major opportunity for the UK to establish a global lead on climate finance.
1. Deploying climate finance
Private investors are increasingly attracted to climate finance opportunities. However, they struggle to discover well-developed projects into which they can deploy their investment.
2. Upskilling local authorities
Local Authorities often lack the skills and capacity to plan and develop projects that demonstrate a return on investment and are at the scale needed to be attractive to private investors. Often project development takes too long to become investable, discouraging private sector involvement.
3. Upfront investment
Project development and replicating successful projects like Bristol City Leap requires significant upfront investment, which UK cities no longer have access to through European sources. Private investors are also not a like-for-like replacement for grant funding.
4. Government and procurement
Currently, there’s a lack of a clear framework for local governments to play an effective role in supporting national government objectives, which may lead private investors to lack confidence in their potential. Procurement regulations can also impede the private sector in helping local authorities design projects, further reducing their capacity for project development.
These challenges are well known to 3Ci and are topics that we are actively focused on solving with our work.
Our programmes address key climate finance challenges in the UK by fostering collaboration among local authorities, national government, and the private sector:
- Net Zero Neighbourhoods – A programme of UK-wide demonstrators which test and showcase the delivery of an integrated local net zero investment model.
- National Net Zero Project Pipeline – A national register of local and regionally led investible projects, articulated to a common and combinable format, to deliver net zero outcomes.
- Technical Assistance for Investible Places – A development fund that invests in the necessary capacity and skills to bring projects forward for investment.
- Regional Investor Events – Convening cities and local governments with investors to showcase opportunities, building mutual understanding and confidence.
- Local Innovation Models – A national platform to share innovations rapidly in an easily accessible and standardised format.
Post COP, we will continue to work with the private sector and UK government to unblock barriers to investment and support delivery on the UK’s COP commitments.
Find out more in about our work in our recent publications.
News
3Ci’s reflections on the Autumn Budget – and what it could mean for the UK’s Net Zero future.
By the 3Ci Team
On Wednesday 30th October, the Chancellor of the Exchequer Rachel Reeves MP announced the new Budget.
We delved into some of the Budget announcements that are relevant to supporting our mission here at 3Ci: to enable private investment into local Net Zero across the UK, creating jobs and growth to support a Just Transition to a low carbon future.
Broadly, these fit into these “three Cs”:
- Clean Energy – from the Warm Homes Plan to Great British Energy (GB Energy), the latest updates are crucial in underpinning the UK’s drive towards greater energy security.
- Connectivity – increasing connectivity is paramount to achieving national, but also local, growth. The Budget lays out several transport commitments to accelerate this in the UK.
- Carbon Capture – in addition to last year’s carbon capture plans from the UK government, Reeves announced further funding for 11 new green hydrogen projects.
Below, we examine how each of these subjects have featured in the Budget Announcement, as well as our perspective on their significance to the UK’s broader vision for Net Zero.
Clean Energy
The budget provided £1billion toward the Warm Homes Plan next financial year and a further £3.4billion across the following two years. 3Ci’s already stated position is that the UK could retrofit three times the number of homes per £ of public investment by spending a small amount up-front on demonstrating innovative financing models like Net Zero Neighbourhoods (NZNs), potentially leveraging £billions of private investment.
NZNs are a ‘no-cost to owner or tenant’ model that turn energy savings into an annuity, meaning private – and other – investment can be attracted to pay for the retrofit works. They are also neighbourhood-wide and focused on local renewal and job creation, not just building works. You can find out more in The Case for a National Net Zero Neighbourhoods Programme.
In reality, several NZNs are about to get off the starting blocks, and the same principle has been used in Local Net Zero Accelerators, so a demonstrator programme is not only cost effective, it is highly achievable.
Separately, 3Ci has welcomed the inauguration of Great British Energy (GB Energy), anticipating further investment into creating more energy security in the UK, including the establishment of the Local Power Plan focused on co-investment in “shovel ready” local authority led projects that provide community benefit. 3Ci also recognises the investment that will be undertaken with the National Wealth Fund. Working with its predecessor, UKIB, 3Ci’s National Net Zero Project Pipeline with over 1,200 projects of £40-60bn of investment provides significant opportunities for collaboration alongside both GBE and the NWF.
GB Energy’s remit will include accelerating existing projects delivering green energy such as wind farms, as well as developing and co-investing in new energy sources that provide community benefit, driven through the new Local Power Plans. The Chancellor has announced funding in the latest Budget to help achieve this, as well as a commitment to establishing its headquarters in Aberdeen.
The above measures rely on having the right levels of capacity in local authorities – and elsewhere in the system – to bring projects up to investment grade, and whilst there is not a separate commitment to this within the Budget, 3Ci will be working with partners to understand how this can best be achieved, as a key to realising private investment and Net Zero ambitions. Underlying these points is the overall resource available to local authorities, which remains under significant pressure.
Connectivity
Increasing connectivity, particularly in the UK, is paramount to achieving national, but also local growth. Public transport infrastructure needs to be able to support our growing population as well as meeting net zero targets, and many infrastructure projects also rely on private investment. They can be highly attractive to patient investors like pension and insurance companies, if developed in the right way.
The Autumn Budget included:
- The delivery of the Trans-Pennine upgrade to connect York, Leeds, Huddersfield and Manchester, “delivering fully electric local and regional services between Manchester and Stalybridge by the end of this year”.
- The Budget commits to an east-west rail to drive growth between Oxford, Milton Keynes and Cambridge.
- There will be more railway schemes to improve journeys across the country.
- There will be funding for HS2 to extend the line to London Euston.
- £1.3bn funding has been announced to improve connectivity within city regions.
Several projects within 3Ci’s Net Zero Pipeline also include transport and connectivity, and we will be seeking ways to bring them forward in a manner that attracts private investment.
Carbon Capture
At the end of last year, the UK Government set out plans for a new competitive UK carbon capture, usage and storage market by 2035 – delivering new jobs and supporting net zero. These plans were supported by a £20m investment fund.
In an exciting update in the latest Budget, further funding was announced for a new, multi-year investment into carbon capture and storage.
Funding will be provided to 11 new green hydrogen projects across England, Scotland and Wales. These will be among the first commercial-scale projects anywhere in the world. 3Ci sees this as a significant opportunity to attract investment into localities across the UK that could target multiple assets alongside these storage and capture facilities, increasing growth and boosting jobs.