H&F Green Investment – make an impact and some money along the way

H&F Green Investment is a new £5million investment offer to support local climate and ecological projects in Hammersmith & Fulham.

The scheme is open to people both within and outside the borough, including residents, businesses, community groups and other interested investors. Anyone is welcome to invest.

It helps the council deliver on its plans to create a greener, cleaner, healthier future as part of its ambitious journey to help make H&F carbon net zero by 2030.

Investment page

What is it?

The H&F Green Investment is a local authority security. It allows residents to directly invest in green projects on their doorstep and make a fixed return on a low-risk investment.

The scheme is aiming to raise up to £5m across several raises. This makes it the UK's biggest-ever green council community investment scheme for green projects. It follows other successful council schemes from The Cotswolds to Camden.

Investment terms

The second phase of the scheme opened on 26 February 2024. It offers a fixed return of 4.6% interest a year across a five-year term.

It is the second of several investment phases and will raise a further £1m to help fund measures to decarbonise the local community buildings, including schools, libraries and community centres.

Phase one closed on 7 February 2024 after reaching the raise target of £1m. The money raised is already helping to improve green parks and open spaces, expand our sustainable drainage networks, and support residents in making healthier travel choices by installing 500 new bike hangars across the borough.

What projects will the investment help fund?

The investment helps fund community and council projects to improve our neighbourhoods, support our communities and make the borough more resilient to the changing climate.

Such projects can span a range of improvement schemes, including:

  • retrofitting projects, such as adding solar panels and heat pumps to power our buildings and local homes more efficiently
  • new cycle lanes and bike parking to build on H&F’s growing cycle transport network
  • more sustainable drainage schemes to help reduce the risk of local flooding in times of heavy rain.

How can I invest?

  1. To get started, you will need to set up an account with Abundance Investment, who are arranging this investment on behalf of Hammersmith & Fulham. It is a simple, free process.
  2. As part of this, Abundance will perform an online ID check, which is required as part of Financial Conduct Authority (FCA) regulations.
  3. You can then deposit money and invest right away. You deposit money into your Abundance account from your bank account to invest.

Investment page

Returns are paid every six months across the term of the investment. They will be paid into your Abundance account for you to withdraw or reinvest as you wish.

For support, visit the Abundance help centre, email Abundance support or call 020 3475 8666. A member of their customer support team will be able to help.

Climate Action Together

We’re investing in a greener, healthier, more sustainable future for local people through local climate action.

It’s part of our ambitious journey to help make H&F carbon net zero by 2030.

The H&F Green Investment now allows residents and businesses, who are concerned about the impact of climate change on the borough, to invest directly in measures to mitigate it.

Frequently asked questions

Are there any fees to invest?

No, there are no fees for investors.

How much will I be able to invest?

Residents can invest from as little as £5. There is no maximum investment amount.

You can invest and get tax-free returns by investing through an Innovative Finance Individual Savings Account. If you choose to do this, you can only deposit £20,000 of new money to invest each tax year.

What is the interest rate?

As the first council ever, H&F launched its second raise on 26 February 2024, offering returns of 4.6% a year across a five-year term.

How long will it take to see a return?

Regular returns of interest and capital are paid every six months across the term of the investment. Returns are paid into your Abundance account for you to withdraw or reinvest as you wish.

You can view the payment schedule on the Abundance investment page to see what payments you will receive and when.

Do I have to pay tax on my investment returns?

Returns on your investment are the same as income you receive from other savings and investments. You will need to pay tax on your returns if you receive income above the Personal Savings Allowance, unless you invest through an Innovative Finance Individual Savings Account.

For more information on how much tax to pay on savings interest, visit the government website.

What if I change my mind?

You have a 14-day refund period from the date you invest to cancel your investment and receive a full refund.

What happens if the funding target isn’t reached?

The investment will fund green projects in H&F regardless of whether the full funding target is reached.

How can I be sure that the money will be really used for what is said?

The Green Finance Framework sets out how H&F Council intends to manage the investment. It means that funds raised can only be used to help deliver on eligible green projects from within this framework. Abundance will provide assurance on the use of funds across the investment term.

This investment is described as ‘low risk’ – what does that mean?

All investments carry risk. But the risks of lending to councils are different from those of investing in companies.

It is important to remember that this is an investment, not a savings account. As a result, returns are not guaranteed. The investment is also for a fixed term, which means there is no guarantee you can access your invested capital before the end of the term.

When you invest in a scheme like this, you are lending money to the council. If the council runs into difficulties, there may be delays to receiving your interest or getting your money back. However, government legislation requires that councils maintain a balanced budget to stay financially viable – they are legally obliged to bring this back into balance. Even if a council does have financial difficulties, unlike a company, the council cannot be declared bankrupt to avoid repaying its debts. This means that no UK council has ever failed to pay back an ordinary loan.

Why does the council want to raise money from the public?

Green financing schemes like this local authority security offer an innovative source of funding that allows councils to borrow at a lower rate than would be available through the Public Works Loan Board. It helps reduce interest costs on green projects, which helps us save taxpayers money.

Who is Abundance Investment?

Abundance Investment is the ethical crowdfunding platform arranging this investment on behalf of H&F. It is regulated by the Financial Conduct Authority.

The company provides the website for investors to set up their account, make their investment, receive returns and get updates on the scheme.

Abundance has been operating for over a decade and have helped delivered other successful council schemes from The Cotswolds to Camden.

Find out more about their investment principles on the Abundance website.

Risk warning

This content was approved as a financial promotion by Abundance Investment (525432). Approval date: 1 March 2024.

Capital at risk. Investments are long term and may not be readily realisable. This content has been approved as a Financial Promotion by Abundance who are authorised and regulated by the Financial Conduct Authority (525432).

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