About the Sustainable Financing Framework
Isle of Man Treasury has recently published its Sustainable Financing Framework which describes how the Isle of Man Government plans to finance expenditure through the issuance of Green, Social or Sustainability financing instruments that will be critical in addressing climate change and ambitions to deliver the Sustainable development Goals (SDGs) of the United Nations Agenda 2030.
The Sustainable Financing Framework sets out the basis for identifying, selecting, verifying and reporting on projects that will be eligible for financing from the proceeds of the financing instruments.
The Isle of Man places much emphasis on green, social and sustainability considerations, which is evident through many aspects of living, working and doing business within the Island. In 2016, the entire nation was designated as a UNESCO Biosphere, in recognition of its special environment, culture, heritage and economy. Nature plays a central role in the lives of those who live in the Isle of Man, and the Isle of Man Government has committed to transitioning to net-zero emissions by 2050, in line with the United Nations’ Intergovernmental Panel on Climate Change report and the Paris Climate Accord.
The establishment of this Sustainable Financing Framework allows the Isle of Man Government to fund its investments and schemes with environmentally and socially impactful, and transparent, debt instruments.
The Isle of Man Treasury intends to allocate the proceeds raised from any Green, Social or Sustainability financing instrument issue, to finance and/or refinance, expenditures that meet the environmental and social criteria set out in the Sustainable Financing Framework. The framework also sets out exclusions for expenditure, in line with green and social objectives.
Second Party Opinion
Isle of Man Treasury has appointed Sustainalytics to provide an external review on the Sustainable Financing Framework. Sustainalytics has reviewed the Sustainable Financing Framework and concluded that the Framework is credible, impactful and aligns with the IMCS, GBP, SBP, SLP, and GLP.
Sustainable Financing Framework Impact and Allocation Report
In line with the requirement to publish a report on the first anniversary of the bond, Treasury have compiled the 'Impact and Allocation Report' to outline how the £400m funding has been allocated to various 'Green' and 'Social' projects across a wide range of Government departments. The amount of funding attributed to each project is highlighted, along with an explanation of the impact the funding has had in supporting the Island and it's residents, in addition to stating how the aims in the original Sustainable Financing Framework have been met.