25-year plan sets out goals for developing ‘green economy’ 

The Government of Gibraltar’s recently-published 25 Year Environment Plan sets out how it intends to support the development of a green economy, including commitments on sustainable finance, incentives, procurement, and leadership across the public sector and wider community. 

The document defines a green economy in terms of emissions, resource use and social inclusion. 

“It is one in which growth in income and employment are driven by public and private investment into economic activities, infrastructure and assets that allow reduced carbon emissions and pollution, enhanced energy and resource efficiency and prevent the loss of biodiversity and ecosystem services,” it said, outlining the goal. 

The plan links these aims to a need to change how economic activity is supported and regulated, adding: “There is a growing appreciation of the social and environmental costs of our current economic model and the urgent need for change.” 

“Green investments need to be enabled and supported through targeted public expenditure, policy reforms and changes in taxation and regulation.” 

“This will create new economic opportunities, green jobs and increased access to sustainable services; which will in turn contribute to improving air quality, enhance our resilience to climate change and help maintain ecosystem services.” 

The report says the Government intends to take a leading role in the transition and to encourage businesses to do the same. 

“It will strengthen market demand for green products and services by providing long-term stable incentives; supported by a well-designed regulatory framework and demand-side policies,” the plan says. 

On sustainable finance, the plan says Gibraltar’s existing finance sector could benefit from the shift in investment towards greener activity. 

The global trend toward green investment could open up new opportunities for Gibraltar. 

“Gibraltar already has a thriving finance centre but the re-allocation of tens of trillions of dollars towards green investment, as estimated by the International Energy Agency, offers a substantial commercial opportunity for the Gibraltar finance sector that has yet to be fully embraced,” the plan says. 

It adds that Gibraltar is positioned to respond to regulatory change and points to private sector activity already underway, adding the Government welcomes “the strides” made by several players in the private sector who have demonstrated a strong commitment to sustainability and to finding better ways of working. 

“From the bunkering industry to the accounting and finance sector, Gibraltar is well placed to respond to the changing regulatory landscape,” it says. 

The plan sets out that the Government will develop a Sustainable Finance Strategy and describes a range of products and initiatives it wants the strategy to support. 

These include sustainability accreditation, voluntary donations to climate action
and a green instrument trading scheme. 

“This will be supported by connections with industry associations such as the Finance Centres 4 Sustainability and training opportunities,” the plan says. 

The strategy will also introduce reporting expectations tied to climate-related financial risk. 

The Government recognised that consideration of the financial risks and opportunities of climate change is a financial and strategic imperative for all good business. 

“The Strategy will therefore also introduce a framework for climate related financial reporting, based on the recommendations of the Task Force on Climate-related Financial Disclosures,” the plan says. 

This work is intended to support Gibraltar’s wider positioning for companies seeking to improve Environmental Social and Governance (ESG) performance.  

The hope is this work will serve to reposition Gibraltar as a destination of choice for those companies and industries seeking to enhance their own ESG performance. 

The plan also describes how the Government of Gibraltar intends to “drive the green market” through incentives and reforms aimed at reflecting environmental impacts in prices and taxes.  

“This could take the shape of tax and subsidy reforms to reflect environmental costs and benefits, such as for example the planned taxes on more polluting vehicles and on additional cars per household,” it says. 

It also highlights incentives linked to efficiency and renewable installations, such
as rates reduction for those demonstrating energy efficiency measures and tax allowances for the installation of solar systems and electric vehicle charging points. 

The plan links investor certainty to longer-term targets and policy frameworks, adding that by providing long term targets for decarbonised and renewable energy, and a clear policy
framework through the Climate Change Strategy, the Government can provide certainty for investors looking to move into the renewable energy market. 

It said the Government would work with the banking sector to explore possibilities for chanelling private investment into clean technologies and infrastructure projects. 

On procurement, the plan says Government spending is intended to support changes in consumption and production patterns, and sets out an approach based on stricter criteria and internal checks.  

“The procurement process and government spending generally are important tools in changing unsustainable consumption and production patterns,” the plan says. 

“The public sector spends millions every year across departments, agencies and authorities.” 

“By introducing stronger environmental sustainability criteria for the purchase of public products and services, Government will increase the demand for environmentally friendly goods and services, thus expanding the market for these.” 

“Our policy is to create a culture of environmental awareness across the public sector through the introduction of sustainable procurement practices.” 

The document sets out a departmental process overseen through officers nominated by the Office of the Chief Secretary in every department to filter procurement requests before
these are sent to the procurement office. 

That will ensure that the product or service being sought does not breach the Government’s commitments under this plan or the commitments entered into as a result of declaring the Climate Emergency. 

Each tender request will be accompanied by a signed statement from the nominated officer confirming that this is the case. 

The plan also links public investment in infrastructure and services to economic outcomes. 

“Public investment in sustainable renewable infrastructure and energy efficiency through renewables deployment, smart grids and energy efficient buildings as well as sustainable public transport will boost the economy and send a clear signal about Government’s intentions,” the plan says. 

The plan describes a need for “bold leadership” across politics, business and civil society, and points to practical measures intended to make sustainable choices easier, including “smart meters, more efficient bus networks, more recycling services”. 

It also sets out expectations for the Civil Service, stating that each department will nominate an environmental leader to support delivery of objectives “within the context of their everyday work”. 

For businesses, the plan says the Government of Gibraltar will continue engagement through organisations including the Gibraltar Chamber of Commerce and the Federation of Small Businesses, and will signpost online tools and support to help businesses understand environmental impacts and develop climate-resilient strategies. 

For non-governmental organisations, it says NGOs “are instrumental in driving change” and that the Government will continue to work with groups including GONHS, the Environmental Safety Group and the Nautilus Project, as well as the Gibraltar Sustainable Buildings Group, to support delivery and ensure ambitions “grow in response to changing circumstances”.