Examination of Witnesses

Part of Enterprise and Regulatory Reform Bill – in a Public Bill Committee at 12:00 pm on 19th June 2012.

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Paul Lee: The point a number of pension schemes have been making is that they cannot buy green bonds simply because they are green; they need to be attractive financially in specific ways for the schemes to feel able to invest in the bonds. Specifically, because presumably those bonds will be specifically attached to the Green investment bank or other green vehicles, the likelihood is that they will be of lower liquidity and therefore less attractive financially for schemes to invest in, so there would need to be some commensurate compensation for that lower liquidity in terms of a higher yield.