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Green bond growth welcomed after Sunak launches 'world first'

The announcement comes amid the publication of a number of measures intended to bolster the UK’s environmental capabilities, including visa reforms to encourage highly skilled workers, including technology experts, researchers and engineers to come to the UK.

The Chancellor Rishi Sunak said: “The UK is a global leader on tackling climate change, with a clear target to reach net zero by 2050 and a Ten Point Plan to create green jobs as we transition to a greener future. 

“In a world first, we’re launching a new green savings bond which will give people across the UK the opportunity to contribute to the collective effort to tackle climate change. 

“And we’re also launching new competitions that will unlock innovation in renewable energy and help us develop the cutting-edge technology we need to reach net zero.”

Alongside the green bond, the Chancellor is expected to announce the launch of three programmes that will receive funding from the £1bn ‘Net Zero Innovation Portfolio’ – a UK-wide portfolio to support the development of the innovative technologies we need to reach net zero.

This includes £20m for a competition to develop floating offshore wind demonstration projects, which can be deployed in deep waters where winds are strongest, as well as almost £70m for a competition to deliver first-of-a-kind long-duration energy storage prototypes that will reduce the cost of net zero by storing excess low carbon energy over longer periods.

A further £4m will go towards a biomass feedstocks programme to identify ways to increase the production of green energy crops and forest products that can be used for energy production.