As part of an initiative to create a net-zero-carbon economy by 2050, Britain intends to launch the world’s first sovereign green bonds targeted at retail investors.
The Treasury department confirmed that these savings bonds will sponsor projects that deal in areas such as renewable energy and clean transportation.
They will be offered before the end of this year.
This announcement has been made at an opportune time: UK is hosting the United Nation’s COP 26 climate meeting in Glasgow scheduled to start on 1st November.
While final details of the green savings bonds are not currently known, the rules governing them will be outlined in the UK’s sovereign green bond framework. The Debt Management Office, the agency responsible for issuing UK sovereign debt, however, said it would sell at least £15bn of green bonds this calendar year.
“This will be the first in a series of new issuances as we look to build out a green curve over the coming years helping to fund projects to tackle climate change … and create green jobs across this country,” finance minister Rishi Sunak had said earlier.
This move by Britain will certainly be an impetus for others to follow suit and capitalise on growing investor interest in assets designed to fund environmentally-friendly spending.