Guernsey could become home to the world's first natural capital fund regime after lawmakers and regulators propose its introduction in new consultation papers.
The first paper, published by the Guernsey Financial Services Commission (GFSC), proposes the creation of a "natural capital fund" designation that is committed to making nature-positive investments. It will complement the jurisdiction's existing regulated Guernsey green fund regime, which was introduced in 2018 and now channels more than £4.4 billion into green investments.
The second consultation paper seeks to enhance levels of confidence in Guernsey's sustainability framework by introducing further guidance to guard against greenwashing.
Creating a fund regime that will help channel investment into biodiversity and natural capital projects is a significant step forward. This fund will provide investors with confidence that their investments are transparent and aligned to international reporting standards on green targets, and it will further enhance Guernsey's reputation as a leading centre for sustainable finance.
In order to be designated as a natural capital fund, funds will be required to set and monitor targets aligned with the United Nations' sustainable development goals, as well as the Convention on Biological Diversity's Post-2020 and the Global Biodiversity Framework's 2030 action targets.
It is recommended that legal advice should be sought out to advise on structuring, operating and investing in investment funds that contribute to an environmental and/or social objective, and other sustainable investment transactions.
For further information on this topic please contact Tim Clipstone, Bryon Rees, Richard Doyle or Michelle Watson Bunn at Ogier by telephone (+1 284 852 7300) or email ([email protected], [email protected], [email protected] or [email protected]). The Ogier website can be accessed at www.ogier.com.
Gabrielle Payne and Chloe Gill assisted with the preparation of this article.