A new Innovative Finance (IF) green ISA claimed to be the first in the UK has been launched.
It will allow investors to put money directly into renewable energy using a tax efficient ISA, according to peer-to-peer investment platform Abundance.
The announcement follows a survey which showed huge potential demand for green ISAs focusing on renewables and environmental projects.
Around 59% of people who hold ISAs said they would invest in a green ISA if it were available.
That represents a potential new investment of £28.5 billion in the 2016/17 tax year, according to Abundance.
Consumers will be able to transfer their existing ISAs from previous tax years into IF ISAs. This could result in an additional £29.6 billion of transfers in 2016/17, the company added, potentially doubling the pot of money available for green investments to almost £60 billion.
Bruce Davis, Managing Director of Abundance Investment added: “Our research shows there’s a real desire for more transparency in investments too so we’re enabling people to take control of their own finances at a time when concern about climate change has never been greater. We’re particularly excited by the idea of the internet of energy which could be funded by a tsunami of green cash and help boost the UK economy overall.”