Guernsey Finance launches green fund

Guernsey Finance launches green fund

Guernsey Finance has launched a green fund.

The Guernsey Green fund has the objective of seeking a return for investors while mitigating environmental damage.

Andy Sloan, acting director of strategy at Guernsey Finance, said: “Guernsey has already been highlighted as an ‘emerging global contender’ in the inaugural Green Global Finance Centres index, launched by the think tank Z/Yen.

"This move underlines our intention to be the ‘go-to’ jurisdiction for all green finance, and particularly the emerging area of green funds. Guernsey’s reputation in the sector and the breadth of our funds offering positions us perfectly."

A spokesperson for Guernsey Finance said there is no minimum investment as the rules are deliberately flexible to be able to apply to any type of regulated investment fund including closed ended, open ended, registered, authorised or private. 

Three quarters of the fund's assets by value must meet specified green criteria.

Permitted investment areas include renewable energy, efficient energy generation, energy efficiency, agriculture, waste and waste water and transport.

The fund's rules use green criteria, developed by the joint finance group of multilateral development banks.

Emma Bailey, director of the investment supervision and policy division at the Guernsey Financial Services Commission, said: “The Guernsey Green Fund rules provide a framework upon which international green investments can be encouraged and facilitated in the Bailiwick of Guernsey. The rules assure investors that their money contributes to initiatives that have positive environmental results while being well regulated.

"The island has a sterling reputation as a funds centre and has the ability to attract individuals and institutions from around the world who want their investments to pursue environmental objectives.”

Kevin Steinlechner, chartered financial planner at London-based Radcliffe & Newlands, commented on investor demand for energy efficient investments.

He said “It is raised occasionally but more commonly there is a desire to invest ethically and responsibly rather than specific to energy efficiency.”