The Green+ Gilt: How the UK could issue sovereign bonds that deliver climate action (LSE Grantham Research Institute)

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The UK has a proud tradition of leadership in climate action and global finance. The urgent need to rebuild the economy in response to the COVID-19 pandemic provides the government with an opportunity to issue a sovereign bond (‘gilt’) that supports both a green recovery and social renewal. This would have significant benefits both domestically and internationally, particularly in the run-up to the COP26 climate summit in November 2021.

The Green+ Gilt policy publication by The LSE Grantham Research Institute of Climate Change and the Environment in collaboration with Green Finance Institute and Impact Investing Institute builds upon the issuance of green and social sovereign bonds across the world and discusses on how a Green+ Gilt could be structured as a cost-effective instrument, able to meet the government’s goals of both “leveling up” regional inequalities and achieving net-zero without the need for hypothecation.

Read more on The LSE Grantham Research Institute Website.

The policy publication on The Green+ Gilt can be downloaded here.