Budget outlines plans for £15bn of green bonds in 2021
Plans for government-backed green bonds have been outlined in the Budget.
Chancellor Rishi Sunak used his economic update to confirm plans for the world’s first sovereign green bond to be released this summer, with a further issuance to follow later in 2021 as the UK looks to build out a ‘green curve’.
Green gilt issuance for the financial year will total a minimum of £15bn, the Budget document said.
The green gilt framework, to be published in June, will detail the types of projects that will
be financed to help meet the government’s green objectives.
The bonds are expected to help finance projects to tackle climate change, fund infrastructure investment and create environmentally-friendly jobs across the country.
The government will offer a green retail savings product through the Treasury-backed National Savings & Investments in the summer of 2021.
This product will be closely linked to the UK’s sovereign green bond framework and will give all UK savers the opportunity to take part in the collective effort to tackle climate change.
“In a world first, we’re launching a new green savings bond which will give people across the UK the opportunity to contribute to the collective effort to tackle climate change,” Sunak said earlier this week.
“We’re also launching new competitions that will unlock innovation in renewable energy and help us develop the cutting-edge technology we need to reach net zero.”
There are already ways to support clean energy projects in the peer-to-peer lending and crowdfunding space.
Abundance has worked with councils this year to provide community municipal bonds that support renewable energy projects in a local area.
Some alternative lenders such as Downing Crowd, Folk2Folk and Crowdstacker already offer green energy investment opportunities.
Crowdstacker raised £1m last year for a project with Prime Agri, which provides funding for agricultural, horticultural and rural small businesses with a focus on renewable energy.
Read more: Confusion surrounds green finance despite growing demand
