Green Fund to incorporate EU ‘taxonomy’
THE European Union’s green ‘taxonomy’ – classification system – are set to be incorporated into the rules for the Guernsey Green Fund.
The Guernsey Green Fund is the world’s first regulated green fund regime, providing a robust, transparent framework for investing in green and sustainable projects. It provides the market confidence from a regulatory wrapper and aligns with current global green standards.
The fund requires assets to be invested in accordance with agreed international standards. The Guernsey Financial Services Commission will incorporate the EU taxonomy as an accepted permitted standard.
Investors’ need for a trusted, transparent product was the rationale behind the creation of the Guernsey Green Fund regulatory regime. Over the past year, five funds with combined assets under management of $4bn have been registered.
Andy Sloan, chairman of Guernsey Green Finance, said: ‘The taxonomy will help move the globe to common standards and a common taxonomy for green investments which is clearly required to help route capital to genuine climate change mitigation investments.’
The Guernsey Financial Services Commission said the taxonomy would provide businesses and investors with a common language to identify what economic activities can be considered environmentally sustainable.
The detailed criteria underlying the taxonomy will be developed and finalised by the European Commission this year and it is the GFSC’s intention to endorse the taxonomy as an additional permitted standard for adoption by a Guernsey Green Fund.
Gillian Browning, director of the investment, fiduciary and pension division at the GFSC, said: ‘The Guernsey Green Fund Rules provide a transparent product through which investments into green initiatives can be made. This helps in assuring investors that their investments have a positive environmental impact on the planet.’