UK government announces launch of first green gilts
Rishi Sunak, in his first speech on financial services since taking over as chancellor in February, announced plans to launch the country`s first green gilts, as part of the UK`s plan to hit the net zero-carbon target by 2050. Green gilts, or green sovereign bonds, are a form of government borrowing where the proceeds are earmarked to fund low-carbon infrastructure projects. This is a huge step for the UK, which is following in the footsteps of the European Union, who have already introduced major green initiatives, with many countries including Germany and Sweden, already issuing green gilts. A further significant announcement made by the chancellor was that the UK would become the first country in the world to make large listed and private companies disclose the threats to their business from climate change by 2025, including banks, insurance companies and pension schemes.