Green loan conditions for businesses? 27 April 2020
So we know that businesses are asking the UK government for loans and we know government is in the mood to impose conditions. What we may not fully have grasped is how the government would maybe tie loans to green commitments. So the BBC was told by Lord Stern that the plan is to require loans to be tied to green performance: https://www.bbc.co.uk/news/science-environment-52418624 .Of course agricultural lawyers are well used to subsidy payments being tied to green targets and green activity compliance, but this is something entirely new to business in general. The penalties for default come in various forms but can include loss of the subsidy. Quite how the green loan conditions might be enforced is an open question. But this is a lot more immediate than the current accountancy advice about environmental risk reporting for corporates: https://www.icaew.com/technical/financial-reporting/financial-reporting-faculty/reporting-on-climate-change.
So if you have nothing better to do on the 28 April, check out the Petersburg Climate Conference on the site of the German Environment Ministry: https://www.bmu.de/en/
Back to articles
