UK to Issue First Ever Green Bonds Next Year
[Asia Economy Reporter Kwon Jae-hee] As interest in eco-friendliness rises, the UK government is issuing green bonds for the first time. General Motors (GM), one of the major American automobile manufacturers, has decided to massively recruit personnel related to eco-friendly vehicle development. This green wave is expected to accelerate worldwide, coinciding with the election of U.S. President Joe Biden.
According to major foreign media on the 9th (local time), Rishi Sunak, the UK Chancellor of the Exchequer, announced plans to issue green bonds next year in a statement to the House of Commons. Green bonds are bonds whose raised funds are restricted to support green industry sectors, and the market has recently expanded rapidly as investors' interest in eco-friendliness increases. Last year, green bonds accounted for $250 billion (approximately 279 trillion KRW), or 3.5% of global bond issuance.
Chancellor Sunak said, "Since we have decided to expand green policies over the coming years, green bonds will mark the beginning of new bond issuances."
The eco-friendly movement is also appearing in companies. On the same day, GM announced plans to hire more than 3,000 additional personnel for software development as part of its electric vehicle transition plan. Previously, GM had agreed to hire about 1,100 people through a joint venture battery plant with LG Chem, but the newly hired personnel are separate from that. The recruitment areas include technical positions such as engineering, design, and IT. GM plans to complete hiring over 3,000 people by the first quarter of next year. The newly hired personnel will work remotely, which GM explained is a measure to attract talent from across the United States. GM's global workforce is about 164,000 employees (as of 2019), and it is expected to approach 170,000 once the hiring is completed.
Mark Reuss, GM President, stated, "This will be an opportunity to show our commitment to advancing software development necessary for GM to lead in the electric vehicle sector."
Earlier this year, GM announced plans to invest $20 billion (approximately 22 trillion KRW) in electric and autonomous vehicles by 2025. GM also set a goal to launch more than 20 new electric vehicle models in the U.S. market by 2023. The company has ambitious plans to apply electric vehicle models across all its brands in the future.
U.S. media have evaluated GM's plans as one of the main beneficiaries of 'Bidenomics,' along with electric vehicle manufacturer Tesla. President-elect Joe Biden announced electric vehicle-related pledges, including installing at least 500,000 electric vehicle charging stations in the U.S. and replacing all vehicles used in postal services and federal, state, and local government projects with electric vehicles. He also plans to cooperate with states to establish strict emission guidelines for internal combustion engine vehicles.
CNBC reported, "President-elect Biden is giving a package gift to electric vehicle manufacturers such as Tesla and GM."
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