Exclusive: Lib Dems urge all UK retail banks to create ‘green accounts’
Acting Liberal Democrat leader Ed Davey has called for all the UK’s high street banks and building societies to offer green accounts
Davey said the entire UK banking sector should make environmentally sustainable banking available for everyone, with funds from green accounts “invested in green technology and the green economy, on projects like renewable energy or home insulation”.
The calls come as a part of a wider £150bn package of green measures floated today as a part of the Liberal Democrats’ coronavirus recovery proposals.
The economic package would seek to transform the UK’s economy with measures such as a “green jobs guarantee”, a larger roll out of electric vehicle charging points and a target of at least 80 per cent renewable energy by 2030.
When discussing the proposal for widespread green accounts, Davey told City PM: “We need to move toward a greener, cleaner economy and the financial sector has a key role to play.
“You shouldn’t need to be a financial expert to find an account where your money is invested in the green economy.
“That’s why I’m calling on every bank and building society to introduce a basic green account so that everyone has the option for their money to help fight the climate emergency.”
The amount of environmentally friendly products available to retail banking customers have grown in recent years, however green retail accounts are not common.
Some critics have said it is too difficult for large banks to ring fence money that would be deposited through green accounts.
Triodos Bank are able to offer entirely green retail banking, however they have no other non-environmentally sustainable options.
Nevertheless, chief executive of the Green Finance Institute Dr Rhian-Mari Thomas said the number of green banking options was still increasing for consumers.
“There are a growing number of green products, like green loans, that some banks provide,” she said.
“There are also green loans specifically to purchase electric vehicles as the country transfers to net zero [carbon emissions].”