Guernsey Press

Green Fund ‘to help island to stand out from rivals’

GUERNSEY’S new Green Fund will help the island stand out from rival jurisdictions – including with so-called millennials interested in ethical investment.

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Guernsey’s Green Fund will catch the eye of millennials, according to Ogier group partner Craig Cordle.

The fund offers investors certified environmentally-friendly opportunities, and Ogier group partner Craig Cordle said the fund was a welcome innovation that created another clear differentiator for Guernsey as ethical investments – also known as environmental, social and governance investments – continue to grow as an asset class.

‘This is a welcome step that once again demonstrates the responsive attitude of the regulator to opportunities in the market,’ said Mr Cordle. ‘The Green Fund will become a welcome part of the jurisdiction’s toolkit for attracting business and raising the island’s profile.

‘The certainty that the fund offers in terms of ESG investments will be of particular interest not just to millennial investors, but also to sovereign funds and

institutional investors who want to be able to offer solid commitments about their investment activities.’

The Guernsey Green Fund certification available now from the Guernsey Financial Services Commission offers a ‘green kitemark’ where the funds administrators either provide a certificate from a suitable independent third party that the fund prospectus meets the criteria or a signed declaration from the designated administrator that the fund meets the criteria.

The GFSC will review the fund’s prospectus before granting ‘green fund’ status. The rules state that 75% of assets by value in a ‘green fund’ must be made ‘with the ultimate objective of mitigating environmental damage resulting in a net positive outcome for the environment’ and must be in one of a defined set of asset

classes – including renewable energy, energy efficiency and low-carbon technologies.

The remaining 25% must not reduce that overall objective or be made in a prescribed asset class such as waste landfills, fossil fuels or uranium mining.

The rules use an internationally recognised set of green criteria, developed by the joint finance group of multilateral development banks.

The positive reaction to the launch of the fund, which is a world first, comes amid efforts to make Guernsey the ‘go-to’ international jurisdiction for green finance and after the GFSC carried out an industry consultation exercise earlier this year that highlighted ‘significant support’ for the scheme.