The plan was outlined today at the launch of Scottish Renewables’ blueprint for the next government, ahead of May’s general election.
It is proposed that the Edinburgh-based UK Green Investment Bank would oversee the scheme.
Niall Stuart, chief executive of Scottish Renewables, said: “New power generation, transmission lines and renewable heating projects all require big capital investment upfront, but could offer savers a decent return on their money over the life of the project, certainly beating the record low interest rates on savings accounts today.
“Creation of a Green Bond would make it easy for people to participate, and also reduce the levels of cash that the country would have to seek from overseas funds to invest in our infrastructure. It would also be a great way to widen engagement with this new industry as government seeks to increase levels of community ownership and investment.”