UK govt to issue first sovereign green bond this summer

Written by Adam Cadle

04/03/2021

The UK government will issue its first sovereign green bond this summer, with a further issuance to follow later in 2021.

In the Budget 2021 document, the government said the green gilt issuance for the financial year will total a minimum of £15bn. A green gilt framework will be published in June, detailing the types of expenditures that will be financed to help meet the government’s green objectives.

Commenting on the  launch of green savings bonds and measures to stimulate green investment, Huw Evans, the ABI’s director general, said: “We welcome the launch of green bonds. They will help the government raise funds to invest in renewable energy and green projects, with savers playing their part in helping speed up the UK’s transition to a low carbon economy.

“As large-scale institutional investors managing £1.6trn of assets, insurance and long-term savings providers have a crucial role to play in supporting infrastructure and green investment. The reviews of Solvency II and the Future Regulatory Framework for Financial Services are key in unlocking investment in green infrastructure and support the government’s net zero ambitions.”

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