Sunak lays out plans for UK’s green sovereign bonds

CHANCELLOR Rishi Sunak on Thursday (1) laid out plans for the country's green sovereign and savings bonds to be launched later this year.

He said the introduction of the bonds are part of his financial strategy to make UK the best place in the world for green finance.

"We're giving the public the opportunity to invest in the government's green initiatives through NS&I's (National Savings and Investments bank) world-first Green Savings Bonds," he said in a traditional speech delivered by the Chancellor at the Mansion House in London.

"We're issuing the UK's debut Sovereign Green Bond in September, with the framework published committing us to the most ambitious approach of any major sovereign," Sunak said.

The Sovereign Green Bond, also known as a Green Gilt, will give both investors and savers across the UK the opportunity to join the "collective fight against climate change".

Under the plan, green projects like zero-emissions buses, offshore wind and schemes to decarbonise homes and buildings will be eligible for funding, with about £15 billion of green gilts issued this financial year alone.

"More open, more competitive, more technologically advanced, and more sustainable – that is our vision for financial services. The Roadmap we are publishing today sets out a detailed plan for the next few years – and I look forward to delivering it, together,” Sunak said in his speech.

After the Brexit, UK has greater freedom to plan its global finance cooperation, he said.

"We now have the freedom to do things differently and better, and we intend to use it fully… The EU will never have cause to deny the UK access because of poor regulatory standards," he added.

Sunak acknowledged the role of the financial services sector in the UK, which contributes £76bn in taxes annually and employs 2.3 million people.

Sunak's speech comes amid ongoing concern about the future shape of the UK's financial sector after Brexit.

In January, Amsterdam ousted London as the largest financial trading centre in Europe.