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Funding the U.K.’s Green Transition Comes at a Price for Savers

  • Retail bonds to finance renewables, climate change adaptation
  • Interest rate of 0.65% is below conventional retail debt
Wind Turbines
Photographer: Chris Ratcliffe/Bloomberg
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The U.K. will offer its first green savings bonds to retail investors from Friday, betting citizens are willing to sacrifice returns to fund the country’s efforts to mitigate climate change.

The savings bonds will finance projects including renewable energy, greener transport and climate change adaptation, according to a statement from NS&I, a state-backed savings bank. The money will need to be tied up for three years and will pay a fixed 0.65% rate of interest.