Green bonds: the only investment tool in town?

Green bonds – a preferred investment option in the UK

Green bonds are all the rage. They are young, effective and purpose-driven: think about financing instruments harnessed with tax-incentives and aiming at environment protection and you’ll understand why these fixed-income instruments are more than the zeitgeist.

They have a future because they are the future. Or strive to take care of it, as illustrated by the UK Chancellor of the Exchequer the Rt Hon. Rishi Sunak who ensured that green bonds were the fulcrum of the Green Financing Framework launched this month by the Government.

Green savings bonds will in priority serve to finance clean transportation, renewable energy, energy efficiency, pollution prevention & control, living and natural resources, and climate change adaptation.

At a time where health infrasturcutre face multi-faceted challenges to decarbonize, protect the environment, ensure energy performance while greening its functions, this is probably the sign that health assets financing will marry green bonds with more traditional budgetary funding and market instruments.

Want to check up the UK Government Green Financing Framework? Click here!