The Channel Island of Guernsey has claimed the launch of the world’s first regulated green fund product.

The Guernsey Green Fund is aimed at investors seeking a return while “mitigating environmental damage.”

The launch is part of Guernsey’s plans to become an international hub for green finance.

The Green Fund is a designation for funds meeting its criteria which invest in green initiatives. If funds meet the criteria they can use the Guernsey Green Fund logo and be listed in Guernsey. 

Andy Sloan, acting director of strategy at Guernsey Finance, said: “Guernsey has already been highlighted as an ‘emerging global contender’ in the inaugural Green Global Finance Centres index, launched by the think tank Z/Yen.

“This move underlines our intention to be the ‘go-to’ jurisdiction for all green finance, and particularly the emerging area of green funds. Guernsey’s reputation in the sector and the breadth of our funds offering positions us perfectly.”

Under the new rules, launched today, 75% of a fund’s assets by value must meet specified green criteria.

Permitted investments include renewable energy, efficient energy generation, energy efficiency, agriculture, waste and waste water and transport.

Emma Bailey, director of the investment supervision and policy division at the Guernsey Financial Services Commission (GFSC), said: “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 while 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.”