Boris’s snub for Rishi over Carrie’s green funds
BORIS Johnson has won a battle with Chancellor Rishi Sunak to fund ‘green’ projects beloved of fiancée Carrie Symonds – despite opposition from a sceptical Treasury.
The Prime Minister’s relationship with Ms Symonds, a passionate environmentalist, has been credited with influencing his pledge about ‘building a green recovery’ after the pandemic, by striking deals on cutting carbon emissions and boosting renewable technologies.
Now, as the UK prepares to hold the presidency of both the G7 and the UN Climate Change Conference (COP26) next year, the latter in Glasgow, Mr Johnson has overcome Treasury opposition to ‘green bonds’, which act like mortgages for businesses that want to pursue environmentally friendly projects.
The Government has faced significant criticism over preparations for the summit, with former COP president Claire Perry O’Neill attacking Mr Johnson for a ‘failure of global vision and leadership’.
The US, China and France boast the three largest green bond markets, with Barclays, Credit Suisse and NatWest among 30 firms to back the introduction of a new ‘Green+ Gilt’ last month.
Mr Johnson – whose father Stanley is also an environmentalist – used his speech to the Tory Party conference to back a clean energy revolution. Ms Symonds – on maternity leave from her job as an adviser at campaign group Oceana, working to support a ‘Vibrant Oceans’ initiative – wears ethical clothing labels and campaigns on issues such as stopping badger culls.
A source said: ‘Rishi’s Treasury is typically cool on issues such as green bonds, regarding them as a bit “gimmicky”, but Boris is less sceptical, and thinks that the “optics” would be good for COP26.’
The Treasury is understood to fear that transforming the goals of central banks risks damaging their credibility and could fuel a dangerous green asset bubble.
Almost £182 billion of green bonds were issued worldwide last year – an estimated rise of 20,000 per cent in a decade.
A letter co-signed by the London Stock Exchange Group last month said: ‘With COP26 approaching, a Green+ Gilt would send an important signal both domestically and internationally.
‘It would demonstrate to other governments and UK-based corporates, that the UK is providing a model to follow in issuing sustainable bonds.’