The UK has doubled the payment to savers on its green savings bond to keep pace with rising interest rates, following concerns that the yield on the climate-friendly instruments was too low to attract demand.
National Savings & Investments (NS&I) said a new tranche of the green bonds, launched on Tuesday, would pay 1.3 per cent annual interest over a three-year term, up from a rate of 0.65 per cent set when the bonds first launched in October.
The government has hailed the green saving bonds, which fund climate-friendly public spending, as a key part of its ambitions to make the UK a hub for green finance.
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