As published on internationalinvestment.net, Monday February 3, 2020.
The European Union's green taxonomy is being incorporated into the rules for the Guernsey Green Fund, Guernsey Finance announced today.
The Guernsey Green Fund is the world's first regulated green fund regime, providing a robust, transparent framework for investing in green and sustainable projects. It provides the market confidence from a regulatory wrapper and aligns with current global green standards.
The fund requires assets to be invested in accordance with agreed international standards. The GFSC will incorporate the EU taxonomy as an accepted permitted standard.
Investors' need for trusted, transparent product was the rationale behind the creation of the Guernsey Green Fund regulatory regime. Over the past year, five funds with a combined AuM of $4bn have been registered.
Dr Andy Sloan, chairman of Guernsey Green Finance, has welcomed the adoption of the EU taxonomy for the Guernsey Green Fund.
"The taxonomy will help move the globe to common standards and a common taxonomy for green investments which is clearly required to help route capital to genuine climate change mitigation investments," he said.