Fifty years on from 1970’s inaugural Earth Day we celebrate how community development finance institutions unlock environmental and social projects
Earth Day 2020’s theme is climate action, just a few months after the UK declared a climate emergency. As we address the enormous challenges of limiting global temperature rises and now a global pandemic, it’s easy to forget how the UK has made significant progress in transitioning to a more sustainable economy.
How fitting to learn on Earth Day that this week solar generation in the UK reached record levels. With less air pollution and therefore clearer skies, solar energy met almost 30% of UK energy demand this Monday 20th April, according to Sheffield Solar’s live PV generation tracker.
Meanwhile as of 2pm today over a fifth (21%) of electricity for the UK national grid is being generated by wind power. With 29% currently coming from solar, right now over half of the UK’s electricity is being generated by wind and solar power.
Beyond the environmental benefits of renewable energy schemes (which of course also include hydro-electricity), there are now many across the UK which are in community ownership. But where can a community which wants to generate local opportunity and wealth through a community energy scheme find the cash to invest in the infrastructure needed?
Well, when a Welsh community wanted to raise £1m for the development of a hydro-electric energy scheme, they turned not to a bank but to a ‘responsible finance’ provider, our member Robert Owen Community Banking (ROCB).
And thanks to initial support from ROCB’s Community Energy Fund, the village of Abergwyngregyn was able to set up Ynni Anafon, a hydro-electricity scheme which will generate nearly 1,000MWh of clean energy and provide more than £30,000 each year for local community initiatives.
Ynni Anafon initially borrowed £15,000 from ROCB’s Community Energy Fund. This was used to develop a community share offer through which people could invest and become members of, a ‘society for community benefit’ set up to raise part of the £1m that the scheme needed for installation.
The £456,000 raised by this community share offer paid for the scheme’s turbine and allowed construction to begin – and the Community Energy Fund stepped in with a £150,000 bridging loan to complete the scheme.
ROCB’s Community Energy Fund has unlocked many successful, thriving community-owned renewable energy schemes all over Wales, with well over 60 community groups supported, including Wales’ largest community energy project, Awel Aman Tawe’s community wind farm at Mynydd y Gwrhyd near Swansea.
It’s just one example of how community development finance unlocks sustainable development. We have more below, which we’re proud to share as we join the millions of organisations and billion people participating in Earth Day 2020 activities today, a “24-hour livestream of climate and environmental action during the coronavirus pandemic.”
Picture © Stewart Attwood
In Edinburgh, plastic-free and zero waste store The Refillery has revitalised its local area, created 5 jobs and saved over 120,000 pieces of plastic packaging from being used – all just a year after throwing open its doors. Founder Kelly Wright used her savings to meet half of the startup costs of the business, with the remainder coming in an ‘ethical loan’ from Scottish responsible finance provider, our member DSL Business Finance. Read more about it here.
Pure Haus is a Leeds-based ecological housebuilder and of the only developers in the country building houses to the premium ecological ‘Passivhaus’ standard. This month the firm secured crucial bridging funds via a £50,000 Coronavirus Business Interruption Loan through our member the Business Enterprise Fund (BEF). This has enabled its work to continue – protecting four jobs and helping to create four additional jobs.
Online and mail-order organic plant business Rocket Gardens in Cornwall now sells more than 1 million organic plants per year and has creates a plant growing and mail order packaging system which is 100% plastic free – the first UK mail order edible plant supplier to have done so. Last year its founder Mike Kitchen was named Social Entrepreneur of the Year. The firm’s growth has been supported with a loan from our member SWIG Finance.
Glasgow Wood Recycling is a social enterprise employing 20 people which which finds meaningful ways to reuse and recycle waste wood. It has prevented over four thousand tonnes of wood from being wasted and creates quality garden and indoor furniture with hotels including Gleneagles among its customers. Other projects have included furniture for boutique wedding venues and a stunning outdoor space for the children of Bankhead Primary School. It has also been supported by DSL Business Finance.
There are hundreds more community projects, businesses and social enterprises, making a positive environmental impact, which would not exist without community development finance institutions, our members. Last year these locally-based responsible finance providers lent £200 million to 40,000 businesses, social enterprises and individuals, creating and protecting 13,800 jobs.
Theodora Hadjimichael, Chief Executive of Responsible Finance, said: “Hundreds of sustainable businesses and social enterprises are reducing the UK’s environmental impact thanks to the impact of responsible finance providers, embedded within the communities they serve.”