The Chancellor announced the world’s first green savings bond program. Britons aged 16 and over will be able to invest their money in the government’s new green projects.
The Green Savings Bonds will be offered at a fixed annual rate of 0.65% over a three-year term.
Mr Sunak boasted that the UK was a ‘world leader in green finance’ and now gives the UK a chance to get involved.
He said: “Our world’s first Green Savings Bonds give UK savers the opportunity to support government green projects and put their money to work in the fight against climate change.
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The Treasury’s announcement of the new program comes just two weeks before the COP26 climate change summit in Scotland, hosted by the UK host.
World leaders will meet in Glasgow to pledge new commitments in the fight against climate change, with the aim of keeping the world on track to prevent global temperatures from rising more than 1.5 ° C by 2050.
Prime Minister Boris Johnson has sought to lead the way to the top, engaging Britain in a series of new green initiatives.
Investors in Green Savings Bonds will not only be able to ensure that their money is used to help the planet, but will also be able to track metrics like how many jobs have been created and which small businesses have benefited.
According to the Treasury, research has found that 80% of 25-44 year olds are interested in a green savings product.
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“The UK’s iconic Green Savings Bonds show how much this greening can and will be funded.
“It serves as an example to the world. “
The launch of the new scheme follows the success of the green sovereign bonds issued last month.
Officials say that on both occasions, green sovereign bonds were heavily oversubscribed.
Rhian-Mari Thomas, CEO of the Green Finance Institute: “After the success of Green Gilt’s first two issues in the UK, it is great to see the launch of the new Green Savings Bonds, which will allow savers to put their money in the service of the environment.
“This is another important step in channeling investment towards building a green, prosperous and inclusive UK economy, and an opportunity for savers to get involved. “
COP26 starts on October 31.