A new Innovative Finance (IF) green ISA claimed to be the first in the UK is to be launched this year.
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.”