The Impact Investing Institute welcomes today’s announcement that the UK’s new green bond framework will include the reporting of social co-benefits, in addition to the environmental impact of green bond expenditure. Such social co-benefits are expected to include job creation, loans to small and medium-sized businesses (SMEs), and supporting households to transition to low carbon heating.
Sarah Gordon, Chief Executive of the Impact Investing Institute, says: “The UK’s green bonds will raise vital funds to address both the climate emergency and to help the UK build back better from the COVID-19 pandemic. The Green Financing Framework’s commitment to report on social co-benefits such as job creation and support for SMEs has the potential to help level up regional inequalities in the UK alongside supporting the Government’s green agenda. This also demonstrates the UK financial services sector’s innovative leadership in sustainable finance.”
“As a member of the Treasury and Debt Management Office’s Stakeholder Discussion Forum on green finance, we look forward to supporting the Government as it begins to issue green bonds while reporting on social co-benefits, which can secure green jobs and support communities across the country.”
The Institute also welcomes the confirmation of the green savings bond for individual savers.
“It is great that the Government is enabling individuals to save with environmental and social impact through this bond. People want to make a positive contribution with their money, in areas such as clean energy and sustainable agriculture, and this instrument will help meet this growing demand,” says Sarah Gordon.
The Impact Investing Institute is a member of and acts as Secretariat for the UK Treasury and Debt Management Office’s new Stakeholder Discussion Forum on green finance. This builds on the Green+ Gilt proposal which we published with the Green Finance Institute and the LSE’s Grantham Research Institute last year, which emphasised the potential of a green sovereign bond with well-defined social and economic benefits.
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