NS&I said the bond would be launched in the second half of this year or early next week.

The green bond is designed to boost investment in environmental projects and jobs and was announced by Chancellor Rishi Sunak last November.

In its annual report this week, NS&I said: “In 2021-22, NS&I will deliver a green savings bond for retail investors on behalf of the Government.”

NS&I added: “This product will give UK savers the opportunity to support projects that will accelerate the transition to a low carbon economy, create green jobs, and participate in the collective effort to tackle climate change. More details will be available in the coming months.”

NS&I chief executive Ian Ackerley, said: “I am proud that NS&I has been chosen to deliver a green retail savings product on behalf of the Government. 2021-22 will be an exciting year as we embark upon our green savings launch and also accelerate our long-term programme to transform NS&I so that we remain fit for the future.”

Over the past 12 months NS&I has generated £23.8bn in net financing for the government, its highest ever although missing its revised target of £35bn.

The savings body also said that it would drop plans to pay Premium Bond prizes direct into accounts for all holders and will continue to allow customers who prefer cheques to maintain this option.

NS&I admitted it had struggled with the volume of calls received during the pandemic but said it was now on top of the problem and was dealing with outstanding complaints. Some customers with complaints have been compensated.