The Green New Deal Fund

The application process includes the completion of the ‘Project Outline’ document. This sets out key information about the financial structure of the project, the ECMs to be used, and the forecast carbon, energy savings and jobs created.

In cases where the net benefit of the grant award is based on technology development or investment in natural capital the projected benefits of the invested sums need to be set out in a clear way over an agreed timeline, and all returns defined, whether this is in financial terms or environmental benefits to the wider community.

The GNDF team will assist potential applicants with this process; including reviewing drafts and discussing structures and the Fund’s approach to measuring outputs. Feedback will be provided on all applications, which may include requests for further information. Indicative term sheets can be issued after reviewing the supplied information.

Prior to investment, technical, financial and legal due diligence including compliance with the Subsidy Control regime will be undertaken to provide assurance on the project and its ability to deliver the claimed outputs, repay the Fund’s investment (where applicable) or show evidence that in the case of a grant award it will instigate results whether in technology development, business growth or other wider social, environmental or educational benefits to the region.

A draft funding agreement will be provided, setting out the terms of the investment, including pricing, drawdown and repayment profiles where applicable, and reporting arrangements.

Once due diligence has been completed, and the funding documentation agreed, the GNDF team can recommend an application for final approval from the Investment Committee.

Reporting on a project’s progress is expected during construction and operational periods.

For GNDF, part of this reporting is on the implementation and results of the agreed ‘Measurement and Verification Plan’, where evidence of the energy and carbon savings made should be provided. The GNDF team and its appointed technical advisor may need to visit the installations and review energy savings, but this will be agreed at a convenient time with the project sponsor.

In the case of equity investments, the GNDF requirements will be more focused on progress relating to the goals set out in the application form around what the equity has been used for and what the expected outcomes from the original investment will be, whether this technology development or growth capital or the wider community benefits.

In the case of grant the expected outcomes will be required to be tracked and reported on to show how the grant benefited the recipient or the wider community through either measured metrics relating to the standard GNDF eligibility criteria or through pre agreed metrics relating to the project with the GNDF panel and assessment teams at the application stage of the project.  

GNDF is open to the public sector and can also invest in energy service companies (ESCOs), special purpose vehicles (SPVs) and small and medium-sized enterprises (SMEs).

A wide range of energy conservation measures (ECMs) can be funded by GNDF.

If you are considering alternative technologies, please contact GNDF to see if this is included.

Yes, as well as funding improvements to existing building stock GNDF can also fund new build decentralised energy projects which can demonstrate a carbon saving to the counterfactual. Please contact the GNDF team for a discussion.

As part of GNDF’s due diligence we work with projects to ensure that they are compliant from a Subsidy Control perspective.

GNDF requests that projects provide a measurement and verification (M&V) plan based on the principles and approach of IPMVP.

The project must be located within one of the following local authorities: Newcastle City, Northumberland and North Tyneside.

Contact GNDF for an initial discussion with a view to completing the ‘Project Outline’ form.

GNDF is a sustainable investor, targeting a socio-economic return as well as a financial return on investment while addressing market failure.

GNDF seeks to invest in projects that contribute towards one or all of the following:

• Decrease in energy costs
• Decrease in CO2 emissions
• Creation of renewable energy capacity
• Creation of skilled green jobs and supply chains within the North Tyne Combined Authority Region
• Deployment of Natural Capital

There may be additional targets specific to each project and these will be discussed at the 'Project Outline' stage of the application process.

GNDF can provide loans, grant or equity depending on the requirements of the project.

GNDF can provide corporate or project financing solution depending on the needs of the project.

No, applications can be made at any time up to October 2025.

GNDF is targeting investments from £0.2 million to £2 million.

The maximum investment term for GNDF is up to 15 years for longer payback projects. Please reach out to the GNDF team to discuss your Project further for an accurate indication of the term GNDF could provide.

GNDF is funded by public sector commitments from the NTCA.

As such GNDF can fund up to 50% of costs depending on the project and borrower.

GNDF can help source the match funding through its relationship with a number of commercial lenders, alternatively GNDF is happy to work with a Project’s own source of finance.

GNDF provides competitive and flexible solutions to address market failure in the low carbon sector by working with each project to provide a bespoke solution that addresses the financing needs of a project.

GNDF invests on Subsidy Control regime terms by utilising measures such as the Market Economy Investor Principle (MEIP) and De-Minimis Regulation.