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Government Securities: Environment Protection

Question for Treasury

UIN HL10178, tabled on 10 November 2020

To ask Her Majesty's Government what plans they have to use green gilts to promote (1) waste recovery, and (2) energy generation from waste.

Answered on

24 November 2020

On Monday 9 November, The Chancellor of the Exchequer announced the UK’s intention is issue its inaugural Sovereign Green Bond (SGB), subject to market conditions, in 2021.

Further details on timings and other aspects of the policy, such as the issuance framework, which will set out the projects that the SGB will help to finance, will be provided in due course.

While it is possible that government expenditures on projects relating to waste recovery and energy generation from waste could be financed with the proceeds of the SGB, such decisions will be made in the coming months following discussions with other government departments, structuring advisors and other stakeholders. The government will provide updates as appropriate.

The government is already taking powers in the Environment Bill to implement Extended Producer Responsibility (EPR) schemes which promote waste recovery. These require producers to fund the end of life costs of their products and can deliver higher collection, recycling and recovery rates.

In addition, the Landfill Tax was introduced in 1996 with the aim of diverting waste away from landfill to more environmentally friendly alternatives, such as Energy from Waste. It has been hugely successful in achieving this aim alongside other waste policy – since 2000, Local Authority waste sent to landfill in England has fallen by 87%.

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