Second Party Opinion: HM Treasury Green Financing Framework

S&P Global Ratings assesses HM Treasury's Green Financing Framework as Dark green, representing activities that correspond to the long-term vision of a low-carbon climate resilient future. The United Kingdom is a high-income country with a GDP per capita of about £40,172 and a population of 69.22 million. The services industry accounts for the majority of the U.K.'s economy (about 80% of total gross value added), followed by the manufacturing industry (18%).

...In line with past allocations, HM Treasury expects, under this updated framework, to allocate a significant share of proceeds to the clean transportation category. The nuclear energy category is also expected to receive a significant share of proceeds, initially around 20% of the total. The pollution prevention and control category will receive a higher share of proceeds compared with past years, notably with the planned spending toward the country's carbon capture, utilization, and storage (CCUS) infrastructure. We note that around 15% of past green allocations have been made as part of the "Multiple" category, which is predominantly allocated to U.K. official development assistance. The issuer informed us that this category's share of overall green financing is expected to decrease in the future. Such allocations correspond to various international climate finance programs that fall under multiple project categories under the framework. The issuer commits to finance at least 50% of net...

Commentary