The idea for a green stock market was announced by Shadow Chancellor George Osborne in a speech at Imperial College on Wednesday. He wants to boost investment in environmental technology companies and help London become “the world’s leading centre” for environmental finance.
The Tories have set up a working group headed by Stanley Fink, former chairman of the Man Group, to devise qualifying criteria and propose regulatory and tax incentives to make it attractive for companies to list. The group will report within the year.
The “Green Environmental Market (GEM) would sit alongside the Alternative Investment Market on the London Stock Exchange.
The market “would provide new capital and opportunities for green technology companies from Britain and across the globe,” said Mr Osborne. “GEM will enable investors to track and invest in green tech stocks in a simple way. It will provide a clear path for start-up businesses in the sector to follow. And it will make the City of London the undisputed leader in green finance for years to come.”
Mr Osborne also wants to encourage individuals to invest in environmentally responsible companies by increasing the amount that people can put into tax-free individual savings accounts that invest in environmentally responsible companies. He suggested that companies which are ahead of the trajectory to meet the UK’s carbon dioxide reduction targets should be eligible for inclusion in the new green ISA.