Crowdfunding to raise £500,000 for council green initiatives

Telford and Wrekin Council believes it is the first authority in the region to raise cash for green projects

A council is looking to crowdfund £500,000 to pay for green initiatives.

People living in Telford will be able to pay £5 or more into its "Climate Action Investment" which will offer investors a return on their money.

That money will then be used to improve energy efficiency for homeless shelters, offer grants for community groups and electric vehicles.

Telford and Wrekin Council said raising money in this way would allow it to spend more on green initiatives.

It would normally borrow money from central government for projects like this and raising the money through crowdfunding instead would allow it to borrow at a lower cost, a spokesman said.

The council is working in partnership with Abundance Investment on the scheme and said investors will earn 2.1% interest per year fixed, before tax, with interest and capital repayments every six months.

The company has been working with a number of councils, including Warrington and West Berkshire, since launching its "municipal investments" in September 2021.

Solar panels and bike sheds

It said it was set up in 2020 to "develop new ways to allow local people to actively participate in the transition to Net Zero".

Telford and Wrekin Council said this was the first time one of these funds had been set up in the West Midlands.

It also said the fund would help "dozens of local community groups and small businesses to reduce their carbon footprint".

That could involve the installation of solar panels, energy efficient LED lighting replacement, bike sheds or electric vehicle charging points.

Since 2018, the authority said it has cut its carbon footprint by 58% and it believes it is on track to meet its commitment to make its operations carbon neutral by 2030.

Councillor Carolyn Healy, the cabinet member responsible for tackling climate change, said there was a limit to the amount it could pay for with its own budget and crowdfunding "gives everyone the chance to contribute" to green initiatives in the area.