Rishi Sunak to announce £15bn green gilt in bid to drive investment in renewable energy

Chancellor will say he wants to make UK most ‘advanced and exciting’ financial services hub in the world

(PA)

Rishi Sunak is expected to announce plans to issue £15 billion of green gilts in the upcoming financial year to boost Britain's transition to net zero and create green jobs across the country.

The chancellor will use his first Mansion House speech on Thursday to outline the plans and vow to make the UK the most "advanced and exciting" financial services hub in the world.

The government has previously committed to hitting net-zero emissions by 2050.

"As the baton passes to a new generation of leaders in finance, I feel optimistic about the future. Ambitious at home. Confident internationally," he will say.

"With a plan to make this country the world's most advanced and exciting financial services hub for decades to come, creating prosperity at home and projecting our values abroad."

Mr Sunak will announce plans to force companies to report their environmental and climate impact.

The so-called Integrated Sustainability Disclosures Requirements will apply to firms "across the economy", the Treasury said.

Companies will also be required to say what risks and opportunities they are facing from climate change.

Big business has in recent years come under increasing pressure to react to the climate crisis.

Oil giants BP and Shell have set out targets that they say will reduce their emissions to "net zero" by the middle of this century.

However, experts worry that companies are setting their own goals and their disclosures on climate impact are impossible to compare to each other.

They have called for mandatory reporting, which would make it easier for investors to assess what companies are progressing the fastest to combat climate change.

On Wednesday the government also revealed details of a new green bond which it hopes can unlock some of the savings that people have collected during the pandemic.

The Treasury will aim to raise at least £15 billion through the green bonds, using the money to invest in zero-emissions buses, offshore wind and efforts to decarbonise homes and buildings.

The bonds will also be used to pay for climate change adaptation programmes such as flood defences or tree planting.

Additional reporting by Press Association