The Guernsey Green Fund Rules
The Commission is pleased to announce the publication of the Guernsey Green Fund Rules following the closing of the consultation on 1 June 2018. The Rules create a new description of a scheme known as a Guernsey Green Fund that has the objective of seeking a return for investors whilst mitigating environmental damage.
The rationale for developing the Green Fund Rules was to develop a transparent product through which investments into green initiatives can be made and in so doing assure investors that their investments have a positive environmental impact on the planet. The Commission is mindful that the finance industry has a role to play in upholding international climate obligations. As an international financial centre with an experienced fund industry, Guernsey is well placed to mobilise capital into secure and well-regulated vehicles that pursue environmental objectives.
Through either Route 1 or Route 2, a declaration is provided that a scheme’s objective encompasses mitigating environmental damage and confirms that a scheme’s investment criteria comply with the green criteria in the Rules. Upon meeting the requirements in the Green Fund Rules, a scheme receives a Guernsey Green Fund designation from the Commission, and may use the Guernsey Green Fund logo to present its compliance with the Rules.
Emma Bailey, Director of the Investment Supervision and Policy Division, commented “The Guernsey Green Fund Rules provide a framework upon which international green investments can be encouraged and facilitated in the Bailiwick of Guernsey. The rules assure investors that their money contributes to initiatives that have positive environmental results whilst being well regulated. The island has a sterling reputation as a funds centre and has the ability to attract individuals and institutions from around the world who want their investments to pursue environmental objectives”.
The Commission is grateful to all of those entities and individuals that responded to the consultation.
The feedback consultation paper response can be found here.
The Guernsey Green Fund Rules can be found here.
The Guernsey Green Fund web page can be found here.