European Regional Development Fund
The European Regional Development Fund (ERDF) is one of the European Union’s Structural Funds which is used to tackle regional disparities across Europe. ERDF helps to stimulate economic development and growth; it provides support to businesses, encourages innovation and supports regeneration.
The London Economic Action Partnership has submitted a strategy to Government which sets out its key goals for investment:
- Skills and Employment
- Enhancing the competitiveness of London’s small and medium sized enterprises
- Strengthening science & technological development and fostering innovation
- Investing in London’s Infrastructure
The England Operational Programme document describes the types of activities that can be funded by ERDF, including in London. It is available on gov.uk. It includes the national outputs targets that shall be achieved. London’s share of the targets are listed in the attached document.
London’s share of the England programme is awarded by Government in Euros (converted to Sterling using a 0.9033 exchange rate in August 2018):
Priority Axis 1 £30,793,518
Priority Axis 2 £2,686,640
Priority Axis 3 £85,005,532
Priority Axis 4 £65,793,546
New calls are expected to launch in early October 2018 (and close in late November). The full details (including the amount of money available and the thematic areas eligible for funding) will be published here.
Click here to see the projects which have received a grant funding agreement and are now live.
Under the 2007-2013 programme, a total of £69m ERDF was allocated to establish the London Green Fund and the London SME Fund to support low carbon infrastructure and high growth SMEs. You can find more information here https://www.london.gov.uk/about-us/mayor-london/european-regional-development-fund-erdf.
For the current programme ca. £75m have been ring-fenced for two new funds that will build on the successes of the 2007-13 funds.
The GLA will procure a Fund Manager to manage a new fund, called Mayor of London's Energy efficiency Fund (MEEF) which will invest in low carbon infrastructure. The GLA will initially allocate up to £43m of ERDF to the Fund and the European Investment Bank will allocate £100m. The fund manager will be required to secure a further £260m from other sources, which will lead to projects valuing at least £400m being supported.
The MEEF will invest in projects that involve:
— Building retrofit and energy efficiency measures in public, commercial and residential properties;
— Production and distribution of low carbon heat, including combined heat and power, tri-generation and communal/district heating generation and/or networks; and
— Small scale renewable energy generation.
In addition to MEEF, a SME 'fund of funds' will be established to provide finance for London's SMEs seeking to scale-up and achieve their growth ambitions. The SME fund of funds will consist of four sub-funds that will invest equity and loan finance in SMEs operating in sectors that are important in enhancing London's competitiveness, including the emerging circular economy.
The SME fund of funds will be established with an allocation of £32m ERDF. The EIB will allocate £50m and the London Waste and Recycling Board (LWARB) will commit £7m for the circular economy component. Funding London will be appointed as the SME fund of funds manager and they will, in turn, carry out a procurement exercise to select professional managers for the four sub-funds.