The Green Sovereign Bond

The Chancellor has pledged to launch Britain’s first “green sovereign bond” this year to meet growing investor demand. Already used in Germany and Sweden, this will be the first of a series of initiatives to help the Government build a green, post-Brexit financial services world. The money raised by the bonds will be used to help fund projects to tackle climate change, build infrastructure investment and create “green jobs”. By 2025 the Chancellor will also require large companies and financial institutions in the UK to disclose threats to their business from climate change. The Government also intends to implement a new ‘green taxonomy’ to help firms and investors appreciate the environmental impact of their investments and clarify what is actually ’green’.