Climate Change Bond
Published: 19 December 2019
West Berkshire to
consider ‘Climate Change Bond’ proposal - Statement from West Berkshire Council
Berkshire is set to be part of a pilot scheme that would enable communities to
invest in green projects in the district.
the proposed scheme, which will be considered by the Executive Committee on
Thursday (19 December), individuals both in and outside of West Berkshire will
be able to invest as little as £5 to support specific projects such as solar
panels or tree planting. In return, they will receive Climate Change Bonds and
a return on their investment.
the bonds could be used to deliver a wide variety of infrastructure projects,
West Berkshire Council intends to prioritise projects which support its recent
declaration of a climate emergency, and the Environment Strategy which will be
adopted in 2020.
Mackinnon, West Berkshire’s Executive Member for Finance said:
scheme has great potential and could enable the Council to take on important
our communities invest, it would provide us with a cheaper alternative to
conventional sources of funds and reduce the overall cost of borrowing to all
taxpayers across the district. We want to keep the administration as simple as
possible, which is why we are seeking to pilot this scheme with an outside
“If the proposal is given the green light by the Executive, people can
play a real part in the coming years in helping us to maintain a green district
and achieving carbon neutrality by 2030, while earning a return on their
Community Municipal Bond (CMB) is a bond or loan mechanism issued by a Council
directly to the public via a Financial Conduct Authority (FCA) regulated
crowdfunding platform. The Council is considering Abundance
Investment as a provider.
can be used to supplement, diversify or replace sources of borrowing to fund
specific infrastructure projects, or to refinance existing debt. They can also
be issued as Green, Digital or Social Housing Bonds if the proceeds are being
earmarked for specific suitable projects.
to completing due diligence on the scheme, which will be funded through the
pilot by external funding, the Council hope to launch the scheme to investors
in the middle of 2020.