This move meets the high demand for environmentally friendly investments
The Bank of England (BOE) announced on Friday that it plans to purchase new green gold leaf issued by the UK government in the second half of 2021.
The move is part of the central bank’s asset purchasing programme, and believes gold leaf is the same as other government debt.
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To meet the high demand for green investments, the UK government is planning to issue a minimum of £15 billion of new debt during the fiscal year.
David Balmes, a senior economist for positive money, welcomed the bank’s decision to qualify Green Guilt throughout its operations. “Banks should go a step further and consider actively supporting green gold leaf to support green government spending and fulfill their mandate to support the net zero transition,” Baums said. said.
Birms also attracted attention from other European countries that were out of the box.
“Compared to countries like France and Poland, the UK has been relatively slow to issue green bonds. The big green investment gap to preempt COP26 has led to the government being forced to do so. We need to adjust strictly how we can quickly increase green expenditures while keeping borrowing costs low.”
The Bank of England has confirmed that green gold leaf is already equally qualifying to existing gold leaf. It can also be used as collateral for other BOE businesses by banks.
