Islington Council has become the latest local authority to launch a community municipal investment (CMI) product on the Abundance crowd bonds platform.
Investors will be able to back local renewable projects through the Islington Greener Futures CMI.
The product offers annual interest of 1.55 per cent over five years.
The launch coincides with the start of the COP26 climate change conference in Glasgow and comes just weeks after the poorly-received launch of National Savings and Investment’s green bonds that offer annual rates of just 0.65 per cent over three years.
The Islington Greener Futures CMI aims to raise £1m to support a range of projects including improving air quality, working towards zero carbon recycling and waste collection, installing electric vehicle charging points and adding solar panels to public buildings.
It can be held inside Abundance’s Innovative Finance ISA wrapper.
“Having grown up in the borough, it is great to see Islington Council demonstrating real leadership in London by giving their residents the chance to make a real difference to local efforts to combat the climate emergency,” Karl Harder, co-founder and joint managing director of Abundance Investment, said.
“The fact that the UK government has put investments like this at the heart of our net zero strategy shows the importance of local climate finance initiatives in the national effort too.”
More than 800 Abundance investors have already channelled more than £2m into projects with West Berkshire Council and Warrington Borough Council, with more local authority projects in the pipeline.