A shortage of suitable environmentally friendly assets for pension schemes to invest in could contribute to a “green asset bubble”, MPs have warned. The Commons’ work and pensions select committee said that pension schemes had the potential to help economies to cut emissions, but warned that there were only a limited number of suitable assets available. With too few options, those that were available risked becoming overvalued, the MPs argued. The committee said that the government could do more to support the development of products such as green gilts to mitigate this risk.

Short supply of green assets ‘may create bubble’ | Business | The Times