The governments Green ISAs are expected to be thrown out before they have even begun this year, as the government looks to scrap the green policy that was a key part of their policy.
The ISAs were to be introduced to allow savers to invest their money in savings accounts that supported green policies, like wind farms, electric vehicles and other low carbon technologies.
The savings accounts were estimated to have helped channel over £2billion a year into green technology, with savers benefitting from the returns as the demand for green energy increases.
In 2008 chancellor George Osbourne said, “Green ISAs will engage the public in a new way in the issues around climate change and show them very clearly the economic benefits of green investment.”
The products have been scrapped because the government backed Green Investment Bank would have been directly competing with other private companies who offer similar products, and the Tories refuse to do this.
The move was opposed by Green campaigners, keen for people to invest in green products.
Matthew Spencer, of the Green Alliance said, “This is very short-sighted, [The government] has not engaged the public in the mission to rejuvenate the UK’s infrastructure, and a green ISA would have been one way to raise enthusiasm as well as new funds.”
Louise Hutchins, head of UK energy campaigns at Greenpeace, added, “The Treasury is putting ideology above any serious ambition to drive green jobs and growth.”