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Sunak urged to issue green bonds with higher returns if climate goals missed

Thinktank says following Chile’s example would give ministers greater incentive to meet targets

Rishi Sunak is being urged to issue a new generation of green bonds that would offer higher returns to investors if the UK government fails to hit its climate change targets.

The Social Market Foundation (SMF) said its plan for sustainability-linked bonds would provide ministers with a greater incentive to meet carbon-reduction goals and would help boost the UK’s prospects of being a global financial hub for green finance.

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