GFSC releases proposal for “Green Fund” rules
April 18, 2018
It has become common knowledge that climate change represents an urgent and potentially irreversible threat to our environment and human societies. It is recognised as a common concern for governments around the world and, as such, there is a global agenda to reduce the negative effects. In accordance with international obligations, sufficient financial resources are required to contribute to climate change mitigation. As part of this process, green investments are destined to mobilise capital into low-carbon projects, infrastructure and research that can reduce the effects of climate change and make the necessary transition into a green future.
In this light, the Guernsey Financial Services Commission (GFSC) has released a consultation paper which includes proposals for a set of “Green Fund” rules. The proposals set out in this paper provide a framework through which green investments can be encouraged and facilitated in the Bailiwick of Guernsey. The intention is to give investors reassurance that their investments have a positive environmental impact on the planet, and confidence that their investments are well regulated.
“The creation of this set of rules for green investment is a great example of Guernsey’s leading role in developing regulation of responsible financial services for the global community and will likely lead to increased awareness of impact investments and their potential positive impact on the environment.”– Sanne Schouwenburg