The goal of these green gilts is to tackle climate change and other environmental challenges, funding much-needed infrastructure investment, and creating green jobs across the UK. This is the HM Treasury’s first sovereign green gilt, and it intends to issue more going forwards.
The UK Government, as a part of this Green Financing Programme, will finance various projects across clean transportation, renewable energy, energy efficiency, pollution prevention and control, living and natural resources, and climate change adaptation. Focus in these areas will bring about environmental and social co-benefits which will be crucial in the UK Government’s goal to cut its carbon emissions by 78% by 2035 and reach net zero by 2050.
'The UK Government’s Green Financing Programme is ambitious and has helped to advance sovereign issuance with an innovative approach that considers environmental and social impact, with alignment to Government policy and we were pleased to contribute our experience to this programme through our Pre-Issuance Impact Report. The activities of the UK Government’s Green Financing Programme have the potential to steer significant investment into activities that will help the UK to succeed against its net zero goal, but we must maintain a close eye on the alignment and priorities of the programme to ensure they remain consistent with net zero over time. Ongoing disclosure, measurement and tracking of impact will be key in maintaining that alignment and we are optimistic about the UK Government’s commitment to do so.'
- Tom Delay, Chief Executive, the Carbon Trust
