Green Bond

Treasury – in the House of Commons on 7th July 2020.

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Photo of Ben Lake Ben Lake Plaid Cymru, Ceredigion

What plans he has to issue a green bond.

Photo of John Glen John Glen Minister of State (Treasury) (City), The Economic Secretary to the Treasury

The Government have been carefully considering the potential issuance of a UK sovereign green bond. At present, we have no plans to do that, but we continue to monitor the case for one, and we will keep it under urgent review.

Photo of Ben Lake Ben Lake Plaid Cymru, Ceredigion

I am glad that the Government will keep this matter under consideration because, as evidenced recently by Quebec, green bonds can be effective in raising capital investment and investment for operational expenditure to further the green transition. Will the Government also consider enabling the Welsh Government to issue such a bond to help the effort for a greener economy?

Photo of John Glen John Glen Minister of State (Treasury) (City), The Economic Secretary to the Treasury

Clearly, debt and the handling of it is a significant challenge for the Government at this time. The core gilt programme is the most stable and cost-effective way of dealing with our financing needs. The hon. Gentleman makes a reasonable point. We will continue to look constructively at all options and at the changing environment as a consequence of this crisis.