Legislation to help the UK reach its net zero carbon emissions target by 2050 was promised in the Queen’s Speech but peer-to-peer investors don’t have to wait for laws if they want to show their green credentials.
The Queen’s Speech during the state opening of Parliament today (11 May) included an environment bill to set out binding environmental targets.
“My government will invest in new green industries to create jobs, while protecting the environment,” said the Queen.
“The United Kingdom is committed to achieving net zero greenhouse gas emissions by 2050 and will continue to lead the way internationally by hosting the COP26 Summit in Glasgow.”
The bill had already started going through the House of Commons at the end of last year and will now continue its passage and be debated by MPs during the latest session.
There are already plenty of opportunities to go green within the P2P lending sector.
Abundance has worked with councils to provide community municipal bonds that support renewable energy projects in a local area. More than £2m has been raised so far for West Berkshire and Warrington councils.
Bruce Davis, managing director of Abundance said the case for change has been accepted by the majority of voters.
“People want to see action at a local level to transition to net-zero and also deliver real changes to the quality of local environments and arrest the declines in biodiversity,” Davis said.
“The good news is that economic studies show that investing in green infrastructure is also the most effective way to deliver the ‘levelling up’ agenda which was so prominent in the Queen’s Speech.
“We are hopeful that many local councils will now issue climate bonds in support of the national targets for net-zeroand that the Environment Bill contains the powers to make those targets legally binding. ”
Some alternative lenders such as Downing Crowd, Folk2Folk and Crowdstacker already offer green energy investment opportunities.
Crowdstacker raised £1m in 2019 for a project with Prime Agri, which provides funding for agricultural, horticultural and rural small businesses with a focus on renewable energy.
The platform has said it has similar projects in the pipeline.