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
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.
For the current programme £75m was ring-fenced for two new funds that will build on the successes of the 2007-13 funds.
Mayor of London's Energy Efficiency Fund
The GLA has procured a Fund Manager, Amber Infrastructure Limited, to manage a new fund, called Mayor of London's Energy Efficiency Fund (MEEF). The GLA has committed £43m ERDF to MEEF and Amber Infrastructure Limited has successfully secured £456m from private investors to make MEEF (almost) a £500m fund. Additionally, the European Investment Bank (EIB) will consider, on a case by case basis, providing finance to projects supported by MEEF, up to total value of £100m.
The MEEF will provide loan and equity finance for 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.
The MEEF was launched on 9 July 2018 by the Deputy Mayor for Environment and Energy, Shirley Rodrigues. It is now open for business and more information, including how to apply, can be found at www.meef.co.uk.
Greater London Investment Fund
In addition to the MEEF, a SME 'fund of funds' called, Greater London Investment Fund (GLIF) has been established to provide finance for London's SMEs seeking to scale-up and achieve their growth ambitions. The GLIF consists of three 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 GLIF is a £100m fund established with an allocation of £32m ERDF. The EIB has allocated £50m and the London Waste and Recycling Board (LWARB) has committed £7m for the circular economy component. Funding London, which has been appointed as the GLIF manager, provides the additional funding of £11m. Funding London is currently in the process of procuring professional managers for the three sub-funds. The GLIF is expected to start investing in early 2019.