World’s First Green Savings Bond Launched By UK
The United Kingdom has launched the first green savings product in the world as it brings a green savings bond to the market.
The Green Savings Bonds are offered at a 0.65% fixed annual rate over a three-year term and are available through NS&I’s website. The bond will allow savers of 16 years and above the chance to back the UK government’s sustainable projects, helping to tackle the climate crisis.
Green projects including offshore wind, zero-emissions public transport, and innovative low-carbon technologies will be eligible for funding, as well as programmes that help the UK prepare for the implications of a changing climate. Projects that increase living and natural resources, such as protecting biodiversity and environmentally sustainable agriculture will also be eligible.
There is a rapidly rising demand for environmentally-friendly investments, especially amongst younger generations. The bonds will offer savers a means of generating both financial and environmental returns.
The government will regularly update savers on which projects have received funding and will share the positive environmental impact their investment is having.
Chancellor of the Exchequer Rishi Sunak said: “Our world-first Green Savings Bonds give savers across the UK the chance to back the Government’s green projects and put their money to work in the fight against climate change.
“The UK is already a world leader in green finance and these innovative new savings bonds will deliver both financial returns and environmental benefits, in a transparent and secure way.”