Chancellor of the Exchequer Rishi Sunak had today (1 July) outlined plans to transform the UK’s financial services industry through £15bn of green bonds that will support projects that decarbonise key parts of the UK economy while improving climate resiliency and adaptation. Sunak is expected to announced that at least £15bn of green bonds – also known as a green gilt – will be set aside to help decarbonise areas of the economy such as power, mobility and the built environment at his first-ever Mansion House speech later today. The Chancellor announced that the UK would issue its first sovereign green bonds back in November last year, as part of its Covid-19 stimulus planning. He also noted that the UK’s first green gilts will not be it’s last.
Edie 1st July 2021 read more »
Treasury confirms proceeds from green bonds will go towards renewable energy, climate adaptation, energy efficiency, nature restoration and zero emission transport projects The Chancellor is expected to unveil critical details about the UK’s inaugural sovereign green bond and retail green savings bond in a major speech in the City of London later today. In an address to young leaders and CEOs at Mansion House, Rishi Sunak will provide details about how the state-backed financial instruments will work as he outlines the government’s broader vision for the future of the UK’s financial sector, the government confirmed late yesterday.
Business Green 1st July 2021 read more »
The government is going for green bonds – but by the look of it, the wrong green bonds. The essence of the story is that £15 billion of government backed bonds are to be made available, with the proceeds to fund solar and hydrogen projects. First, an observation: I am told these bonds are not to be made available in ISAs. I do not know why. Then, some thoughts. First, the Osborne ‘granny bond’ in 2015 raised £15 billion in almost no time because the interest rate was favourable. I hope it is good this time. But the article already says this would be a waste of taxpayer’s money. How wrong can The Times be? Second, it is shame that solar is to be a focus of this: money is easy to secure for solar right now. I believe that true for hydrogen as well. In that case what is this bond for? Third, it is the tougher elements of environmental concern that need funding. Why isn’t this money for retrofit? And why not for investment in new technology? Where is the investment in tidal power? Or new heat pump manufacturing capacity? And what about new, green, social housing? These would seem like a much better use of government-backed funds.
Tax Research 1st July 2021 read more »