News in brief

A greener approach to investing

Under recent proposals put forward by the Conservatives people would be able to save thousands of pounds more tax−free if they invest in environmentally friendly companies.

George Osborne, the Shadow Chancellor, is planning a new green individual savings account (GISA), which would allow savers to go above the current £7,000 tax−free limit for a stocks and shares ISA provided that the investment is approved as being green.

The plan is aimed at making millions of savers feel that they are making a personal contribution to tackling climate change while giving companies a massive incentive to curb emissions and adopt greener technologies.

Mr Osborne is looking at increasing the limit to £8,000 or £9,000. Eventually the figure could go to £10,000. The proposals would almost certainly be made in the first Budget of a future Tory government.

The creation of a green qualifying threshold will be designed to encourage companies to implement environmentally friendly policies to attract this additional investment stream. It is envisaged that an independent body would determine whether companies met these requirements, and would be responsible for revising and updating the criteria over time. The working group will also set out proposals regarding the composition and remit of this supervisory body.

The Conservatives are also working with the London Stock Exchange on GEM, a new trading market for green technology companies in London. Mr Osborne wants to make the capital the leader in green finance.