Hounslow Council Launches Green Investment Fund
Offering a return of 4.1% in attempt to raise £5million
Community garden projects could benefit from the fund. Picture: Hounslow Council
June 3, 2025
Hounslow Council has announced that it is setting up a new green fund which will be looking for investment from borough residents.
Hounslow Green Investment, aims to raise £5m over the next five years, with the money being used to fund local environmental investment projects.
Anyone putting money into the Community Municipal Investment (CMI), will receive a fixed interest payment every six months and the interest rate is 4.1%
The first tranche of the Hounslow fund will be capped at £1million and will be open for investment for three months. The funding process is managed by Abundance Investment, a platform for ethical and sustainable investments.
Projects earmarked for investment include Clear Air for Schools which support a variety of interventions like air purifiers, cycle infrastructures and improving energy efficiency in buildings, the installation and upgrade of cycleways and the Hounslow Community Energy Fund, which offers funding to decarbonise community spaces through solar panels, heat pumps and LED lighting.
This allows the council to raise more money more cheaply than from other sources and follows the example of Hammersmith & Fulham Council which launched a similar fund in 2023 initially offering an annual return of 4.85% After a number of fundraising rounds this has brought in over £2.5million. In May 2025, the council introduced an incentive where for every £1 invested by residents, an additional 50p would be contributed to support green projects.
Councillor Katherine Dunne, Cabinet Member for Climate, Environment and Transport, said the Green Investment will help boost Hounslow Council’s Net Zero efforts.
She said, “Such schemes have already proven incredibly successful and very popular in other local authorities.
“It’s a great way for people to invest in the borough and make a decent return too. But more importantly, it is encouraging people to take an active role in lowering local carbon emissions.
“We want everyone to play a part and that’s why you can start investing for as little as £5.”
To sign up to the scheme, click here.
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