incentivising a more sustainable world
The UK Government has now set ambitious targets to reduce carbon emissions by 78% by 2035. Corporations are increasingly aware that they need to create a positive ESG1 impact on their local environment, but do not have easy means.
At the same time, local ESG projects struggle to access the low cost gap funding they need to become viable. A recent PwC report ‘Unlocking capital for Net Zero infrastructure’ commented that if a traditional approach to infrastructure investment continues to be taken, over 50% of the £41bn annual investment needed in the UK to create sufficient Net Zero infrastructure will not be delivered.
Often those supplying solutions cannot find those seeking solutions, and when they do their solutions are unaffordable. Resolving this is critical: the world is running out of time (e.g. climate change) and solutions come mostly from emerging players who cannot scale without access to viable market opportunities.
The PyTerra Xchange is an ambitious solution for cities tackling the UN’s Sustainable Development Goals (SDGs), especially in the fight against climate change.
The Xchange creates market opportunities for solution suppliers to launch viable ESG1 projects rapidly and at scale.
It is a platform where not only emerging solution suppliers and the demand side can meet, but where the funding gap is taken care of by both corporate sponsors and by the economies of scale offered by aggregated projects.
Local corporate sponsors, keen to address their CSR2 goals and enhance their brands, are engaged by the platform to inject investment to provide this gap funding.
PyTerra is therefore the perfect instrument to scale emerging solutions needed to tackle local ESG issues.
Join us in making the Xchange a force for positive change across our cities.
- Environmental, Social and Corporate Governance
- Corporate Social Responsibility
The PyTerra Xchange – connecting corporates with communities
PyTerra Xchange Users
View this introduction to PyTerra
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The PyTerra Xchange
The Xchange incentivises the creation of large scale investable projects suitable for gap financing by corporates using the following process:
- Corporates invest and ESG vouchers are produced (donations and grants can be blended with finance)
- Stakeholders table investable projects
- Commissioning bodies bid for vouchers
Investment is made accessible using PyTerra ESG vouchers:
- Community sponsors guide the allocation of vouchers to end users
- End users sign up to deals and claim their discounts by redeeming their vouchers
- Redeemed vouchers release finance to solution suppliers
For corporate sponsors
- return on investment
- enhanced brand
- deployment of CSR (Corporate Social Responsibility) policies
- reinforced social licence to operate
- building local resilience to climate change
For end users (voucher holders)
- discount on low carbon services
- membership of aggregated schemes offering lower costs of service
For community sponsors
- enhanced neighbourhood branding
- increased inward investment
- increased local employment
- increased sense of local pride and social cohesion
For solution suppliers
- access to new markets and projects
- access to larger aggregated projects
- use of gap finance to make projects viable
- incentives to collaborate and innovate
For city stakeholders
- more rapid delivery of ESG targets, eg Net Zero by 2030
- less pressure on public finances through increased private finance
- levelling up as all communities have access to transformational finance
- stimulation of the local economy through the application of ‘buy local’ financial criteria
Types of sponsored initiatives
Sponsored finance is being initially targeted at decentralised low carbon and renewable energy initiatives across cities, examples of which fall under the following three categories:
Pillar 1 – Infrastructure
- district heating
- energy storage
- Net Zero residential and commercial development (new and retrofit)
Pillar 2 – Innovation
- EV networking, charging, storage and servicing
- conversion of petrol/diesel vehicles to electric
- cycle storage and servicing units in city centre multi-storey car parks
- drones for local delivery and servicing
Pillar 3 – Talent
- subsidised work experience for apprentices
- subsidised employment for apprentices
How sponsors are promoted
The Sponsor Promotion Programme gives corporate sponsors, community sponsors and the neighbourhoods in which sponsored projects are based, positive exposure using digital media which they otherwise would not get.
PyTerra is a Bristol-based company and is working with Bristol City stakeholders to initially establish the PyTerra Xchange in the South West of England.
Join in conversations through the following networks: