British politician Rishi Sunak has reportedly announced plans to transform the City of London into a green finance hub while the government attempts to bolster its competitiveness in the global landscape post Brexit.
The chancellor has apparently been planning to use his first speech at the annual address at Mansion House in front of City financiers to lay out the details of a £15 billion (~USD 20 billion) UK programme of government-sponsored bond issuance. The proceeds from the programme would supposedly be spent on environment-friendly projects.
Sunak, with the objective of making Britain a global leader in the low-carbon financial services space, has also been preparing to introduce a separate green savings bond for consumers in the UK, which would evidently aid in funding infrastructure schemes and generating more green jobs in the region.
The green savings bonds would be deployed through the National Savings & Investments (NS&I), wherein it would offer consumers a chance to support green projects through the option of receiving a fixed rate on savings over a term spanning three years, claim reliable sources. The state-owned savings bank is slated to launch the bonds later this year with a minimum £100 and a maximum £100,000 limit per person, reports suggest.
It is worth noting that state expenditure is not subject to funds that the government raises from investors for certain projects. However, the amount raised after selling the two green bond issuances would be used to fund low-carbon schemes like zero-emission buses and offshore wind, along with projects that promote biodiversity as well as natural resources through activities like tree planting, according to reports.
Shadow chief secretary to the Treasury, Bridget Phillipson, reportedly said that there was a need for more details and guarantee that the bonds would be spent properly for green jobs and initiatives to curtail the climate breakdown.
Notably, under the green bond programme, the government would report on the projects’ social benefits to update investors with the number of jobs created and households and businesses that have benefited from the scheme.
The announcement comes ahead of the COP26 climate conference that UK ministers are set to host in Glasgow later this year.