A framework developed to offer a structured approach to help local authorities prepare for the Green Book option process, ultimately supporting councils to design, appraise, and fund capital-intensive Net Zero investments. This insight also highlights key financial metrics and appraisal techniques that improve transparency and comparability.
Experience Level:
FoundationPart of: Net Zero Living
Achieving Net Zero requires significant investment in capital-intensive programmes, yet local authorities often face limited resources and fragmented guidance when deciding how to finance them.
The ‘Unlocking climate capital: A business case framework for local authority Net Zero projects’ insight, commissioned by Innovate UK from City Science, introduces the Net Zero Finance Options Framework, developed to support local authorities in navigating these complexities and making well-informed investment decisions by offering a structured preparation procedure for the Green Book option process. Moreover, the insight also highlights key financial metrics and appraisal techniques that improve transparency and comparability.
Drawing from established tools and principles such as Multi-Criteria Decision Analysis, Whole System Finance, and HM Treasury’s Green Book, the Net Zero Finance Options Framework is tailored specifically to the challenges of Net Zero programme delivery.
By guiding local authorities through five structured steps – from defining their role to finally arriving at the Green Book’s option process – the framework helps clarify decision making, prioritise limited resources, and ultimately maximise value.
Through this process, the framework strengthens a local authority’s capability to appraise investment options, reduces financial risk, and builds confidence among stakeholders. This insight also offers practical guidance, workshop structures, and recommended tools for applying the framework across Net Zero initiatives.
Contains public sector information licensed under the Open Government Licence v3.0. © Innovate UK. You may use this content (including commercially) under the Open Government Licence v3.0, provided you credit Innovate UK and include the licence link.
Designed to aid Local Authorities in developing robust, evidence-based plans to enable Net Zero.
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