The project, based in Dublin with centres in cities such as London, Frankfurt, Paris and Zurich, is aimed at the promotion of sustainable finance. Guernsey, in particular, will be committed to supporting ‘green insurance’ through regulatory changes in the insurance industry.
Any product that reduces or mitigates against climate change falls under the ‘green insurance’ definition.
The project is mainly aimed at long-term insurance products, which can be the riskiest and have seen a drop in sales and become more and more unattractive to customers. Therefore, by moving towards a ‘greener’ direction, Guernsey Financial Service Commission (GFSC) hopes to make long-term insurance product more interesting to future clients.
Andy Sloan, deputy chief executive at Guernsey Finance said: “We are pleased to be one of the leading European green and sustainable finance centres involved with the launch of the European network of the UN’s FC4S, demonstrating the commitment of Guernsey Green Finance to international engagement and pursuing the goals of FC4S, and our position at the forefront of green finance.”
The Channel Island is considered to be at the forefront of the development of green finance after launching the Guernsey Green Fund, the world’s first regulated green fund product, earlier this year.
The GFSC is also thinking of removing regulatory barriers such as the mandatory posting of collateral or the limitation of direct distribution rights in order to enhance free trade.