"We welcome the proposal by the Shadow Chancellor George Osborne for a working group to look at the potential for a green individual savings account (GISA)."said Emma Howard Boyd, Head of Socially Responsible Investment at Jupiter.
 
She continues: "As a pioneer in green investing we believe there is a compelling case for a product of this kind.  There is a huge investment required to make the transition to a low carbon economy and allowing individuals to target green strategies through investing via a tax free saving wrapper demonstrates how savings can form part of this process.

"While people already have the opportunity to invest in green funds via an ISA it will clearly raise the profile of this area of investing and also provide an opportunity to benefit from the enormous growth we are expecting in this market.  It has taken a while for the momentum to build, but now that so much energy is focused on encouraging change, we believe we are only just beginning to see the potential in this area of the market.

"Last year witnessed an active agenda for environmental issues with governments becoming increasingly engaged in the issues. Corporates and consumers have also become more aware and sales of our green funds have risen sharply as a result. The GISA would enhance that trend further. 

"We look forward to being actively engaged in the development of this initiative.  It will be important that the criteria used to decide whether an investment fund meets the green standard takes into account the track record and expertise that has been built up within the SRI industry, whilst allowing for further product innovation.

"At a company level, the green standard must be sufficiently challenging and considerate of the corporate strategy for tackling climate change. It should allow for the inclusion of both environmentally proactive companies - the M&S's of this world - as well as those companies providing environmental solutions."

NOTE

Jupiter Unit Trust Managers Limited (JUTM) and Jupiter Asset Management Limited (JAM) are both authorised and regulated by the Financial Services Authority and their registered address is 1 Grosvenor Place London SW1X 7JJ. They are both subsidiaries of Jupiter Investment Management Group Limited and the group is collectively known as "Jupiter". The above commentary represents the views of the Fund Manager at the time of preparation and may be subject to change. They are not necessarily those of Jupiter and should not be interpreted as investment advice. Every effort is made to ensure the accuracy of any information provided but no assurances or warranties are given.