Guernsey's green finance regulations praised

Jean-Paul Servais suggested the island was one of the first places to regulate green investments

The head of an international regulator has praised the strength of Guernsey's green finance regime.

Jean-Paul Servais, chairman of the International Organization of Securities Commissions (IOSCO), suggested the island was one of the first places to regulate green investments.

Green finance is a loan or investment that supports environmentally friendly activity.

Funds located in Guernsey have invested in new solar panel projects across the world, alongside new wind farms.

'Learn from each other'

Guernsey Finance, the body promoting the island's finance sector, said the net asset value of Guernsey green funds had steadily risen since 2018, with £5.6bn recorded at the end of March last year.

Mr Servais was among more than 50 visitors invited to the island by the Guernsey Financial Services Commission to discuss regulation.

He said uniform regulations around the world were helpful in avoiding greenwashing - branding something as eco-friendly, green or sustainable when it is not the case.

"We need to speak the same language on standards, but the best way to fight against greenwashing is to avoid using different frameworks," he said.

The IOSCO said it regulates more than 95% of the world's securities markets in more than 130 jurisdictions.

Mr Servais said initiatives such as green finance showed why the commission was useful as different jurisdictions could "learn from each other".

He added: "It means we have more data, a giant database."