UK social investment group Big Society Capital has made a £1m investment in a carbon reduction charity Pure.
The investment will enable Pure to fund up to 70 community energy projects, marking a significant milestone in its efforts to deliver a £7m income boost to deprived communities across the UK.
Big Society Capital’s investment will be augmented by donations from companies such as Barclays and British Airways.
The Pure Community Energy Fund provides low interest loans to community-led projects, enabling them to afford to set up small-scale renewable energy schemes. To date, it has used funds from Big Society Capital to issue around £150,000 of low interest loans to five community based projects.
As well as reducing carbon emissions, the projects also provide a continuing income stream for their communities from energy savings and via the feed-in tariffs and the Renewable Heat Incentive (RHI).
Big Society Capital’s CEO Nick O’Donohoe said, “We are delighted to support PURE’s mission of utilising renewable energy to address social need. PURE’s innovative approach illustrates how Big Society Capital and social investment can work with major companies to deliver benefit to society.
“Our priority is to build a bigger and stronger society and grow the economy. We set up Big Society Capital so that social enterprises and charities can get better access to finance so they can expand their services and develop better solutions to our social problems – today’s announcement is a great endorsement of this working in practice.”
Big Society Capital is an independent financial institution, established with capital from dormant bank accounts and the main UK high street banks, to develop and shape a sustainable social investment market in the UK.
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