In the UK’s first Green Gilt, Â£ 10 billion was raised for projects such as zero-emission buses, offshore wind turbines and decarbonisation programs for homes and buildings during this fiscal year.
It was the largest inaugural green issue from a sovereign, according to HM Treasury, helping to demonstrate the UK’s commitment to tackling environmental challenges in the run-up to COP26.
“Green finance is vital in helping us meet the environmental challenges we face, and the launch of our first Green Bond is a signal that the UK continues to be a global leader in this area,” said the Chancellor of the Exchequer, Rishi Sunak. .
âThis funding will be used to fund vital green government projects across the country, including things like clean transportation, renewable energy and the preservation of our natural environment. By helping us build back better and more environmentally, it will also help create jobs as we go down to net zero. ”
This first round of funding will be followed by a second issue later in the year, with the Green Gilts due to raise a minimum of Â£ 15bn for green government projects. These government bonds, or gilts, are designed to be sold to institutional investors and offer a fixed rate of return until they expire.
The inaugural Green Gilt is a 12-year bond, maturing on July 31, 2033.
Under the green finance framework released by the government earlier this summer, clean transportation, energy efficiency, renewable energy, pollution prevention and control, biological and natural resources, and climate change adaptation have were identified as the areas to receive funding through Green Gilt.
The gilt was announced as part of the government budget in early March, along with a âworld firstâ infrastructure bank and additional support for the offshore wind industry.