URL: https://democracy.sheffield.gov.uk/ieDecisionDetails.aspx?ID=4160

Decision Maker: Strategy and Resources Policy Committee

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: No

Purpose: S&R responded to the Council motion (7/2/24) on Five Years Since Declaring A Climate Emergency.  The response indicated that  "Officers from Finance and the Sustainability and Climate Change team will explore the practicalities of issuing green bonds and will report back to the Strategy and Resources Committee with their initial findings by September.

Content: S&R responded to the Council motion (7/2/24) on Five Years Since Declaring A Climate Emergency.  The response indicated that  "Officers from Finance and the Sustainability and Climate Change team will explore the practicalities of issuing green bonds and will report back to the Strategy and Resources Committee with their initial findings by September. 13.1 The Executive Director City Futures and the Director of Finance and Commercial Services submitted a joint report responding to the motion that was passed at Full Council in February 2024 asking Officers to explore Local Climate Bonds (LCBs). The report outlines what LCBs are, their potential for supporting citizen engagement and how they could contribute to climate action in Sheffield.   The report stated that for a Local Climate Bond to be issued, the Council’s Treasury Management Strategy would have to be amended to enable the Council to raise funds from the public. Members are recommended to support this alongside signing a Local Climate Bond Pledge. Subject to this agreement, Officers would  then develop a bond proposal and seek full approval from Committee to launch a ‘Sheffield climate bond’ in 2025.     13.2 RESOLVED UNANIMOUSLY: That Strategy and Resources Policy Committee:-       (a) agrees to updating the Treasury Management Strategy to include Local Climate Bonds, to enable the Council to raise funds from the public;   (b) agrees to sign the Green Finance Institute Local Climate Bond pledge; and   (c) requests that Officers develop a Local Climate Bond (LCB) issuance proposal, including a Green Finance Framework and that Officers will seek full approval from the Strategy and Resources Policy Committee to launch a ‘Sheffield climate bond’ in 2025.     13.3 Reasons for Decision     13.3.1 Evaluation has been undertaken to compare LCBs to other forms of borrowing and this has demonstrated that under certain circumstances LCBs can be more cost effective than typical borrowing methods, however the real value of LCBs lies with the engagement opportunity with communities.     13.3.2 Research has been conducted into other Councils who have delivered successful LCBs, and learning from them has been valuable in developing this proposal and allows for a more informed decision to be made.     13.3.3 Engagement – LCBs offers communities an opportunity to engage and participate in a wider approach whilst contributing to climate solutions.     13.3.4 There has been growing demand from local community groups and members of the public for the Council to issue an LCB. This report responds to this demand by providing an overview to allow Members to make an informed decision about how to proceed.     13.4 Alternatives Considered and Rejected     13.4.1 As outlined in section 3 of the report, the alternative option is not to proceed issuing a climate bond, and to continue funding projects through prudential borrowing methods. This option, however, means missed opportunities for engaging with residents, and building an open dialogue with communities about climate action.  

Date of Decision: December 11, 2024