- First ever green savings product from a sovereign issuer goes on sale online at NS&I for at least the next three months
- The Green Savings Bonds will give UK savers the chance to back the Government’s green projects and join the collective fight against climate change
- Bonds provide savers with financial returns and environmental benefits, backed by NS&I’s 100% guarantee
The world’s first green savings product from a sovereign issuer is available to UK savers from today (22 October 2021), less than two weeks ahead of the COP26 climate conference.
The landmark Green Savings Bonds give savers aged 16 or over the opportunity to back the Government’s green projects and put their money to work in the fight against climate change.
Green projects like zero-emissions buses, offshore wind and innovative low-carbon technologies will be eligible for funding, along with programmes to help us adapt to a changing climate like flood defences.
Projects to boost living and natural resources such as planting trees, protecting biodiversity and environmentally sustainable agriculture will also be eligible.
The Chancellor 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.”
The Green Savings Bonds will be available from NS&I’s website and are offered at a 0.65% fixed annual rate over a three-year term.
With demand for environmentally friendly investments growing, particularly amongst young people, the bonds offer savers a way to generate both financial and environmental returns.
Research found that around 80% of people aged between 25-44 would be very or fairly interested in the concept of a green savings product, and that 42% of 18–34-year-olds would be willing to accept a lower return on their savings if they knew their money was being put towards green projects.
And because the Green Savings Bonds are offered by NS&I, the Treasury-backed savings organisation which offers Premium Bonds and other products, 100% of the investment is protected and guaranteed by the Treasury.
The Government will report regularly so savers can see which projects have been funded and the positive environmental impact their investment is making.
And in another world-first, the UK will report on the social co-benefits of the projects funded, so savers will also be able to track metrics such as the number of jobs created and SMEs or households who have benefitted.
Sean Kidney, CEO of Climate Bonds Initiative: “Every government has to green their budgets to meet climate targets.
“The UK’s landmark green savings bonds show just how that greening can and will be funded. It serves as an example to the world.”
Rhian-Mari Thomas, CEO of Green Finance Institute: “Following the success of the UK’s first two Green Gilt issuances, it’s great to see the launch of the new Green Savings Bonds, which will allow savers to put their money to work for the benefit of the environment.
“This is another important step to channel investment towards building a green, prosperous and inclusive UK economy, and an opportunity for savers to get involved.”
The Green Savings Bonds are the latest green finance initiative from the UK, which has been setting an example globally.
In the last month, the UK has issued £16bn of green sovereign bonds, with a record-breaking debut issue of £10bn that attracted the largest ever order book for a green bond, followed up by a successful second issuance of £6bn yesterday (21 October), which was even more heavily oversubscribed.
And earlier this week, the UK clamped down on greenwashing and set new global standards for environmental reporting with requirements for certain large businesses to set out their green credentials.
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