Green Bonds Tap Small Savers to Finance the Climate Transition
The U.K.’s national savings bank and municipalities are raising money from environmentally minded investors.
Skimming through the pages of her local newspaper, Lesley Hawker spotted an unusual investment proposition. Her local municipality, West Berkshire Council in South East England, was issuing a bond that would put the buyers’ money into projects such as solar panels, flood alleviation, and conservation. “We loved to see our local area becoming more sustainable and environmentally friendly—we’re happy to fund anything that can help that,” says Hawker, who is a frequent donor to environmental charities. She ended up investing £1,000 ($1,340) in the £1 million bond.
That green bond, which closed last year, was the first of its kind in the U.K. Now more retail investors are being offered the chance to invest directly in the nation’s energy transition. Other local governments have gotten into the act, and the state-backed savings bank, National Savings & Investments (NS&I), has launched a green savings bond that can be purchased for as little as £100.