The government announced £1.4 billion of spending on green projects in the Budget. Not enough, we all know, but better than nothing.
We also all know that this money will be borrowed. Let’s face it, all the government’s spending commitments will be met from borrowed funds.
Why then wasn’t the funding in question designated to be paid for by a Green Gilt issue? One hypothecated so that ethical funds could be sure to buy it? And why wasn’t it linked to a Green ISA — so much more use for the economy, the environment and government than the current absurd ISA arrangements? And why wasn’t this used as the pilot for more Green Gilts to follow if we are to pay for the investment we so desperately need if we are to have a future?
I’m not sure of the answers to these questions, but suspect the Treasury has a lot to do with this.
I’m equally sure that whoever puts this in their manifesto will have a vote winning policy.
I’ve been arguing the case for bonds of this sort for several years, but the time has never been better than now. And this time it’s really open to all comers.