Green banking: 6 of the best eco-friendly online banks and debit cards for sustainable spending in the UK

• Consumers are increasingly seeking financial products that align with their eco-friendly values
• Eco-friendly credit and debit cards promote sustainability through tree planting, carbon offsetting, and green reward.
• While Europe and the US lead in sustainable banking, the UK lags behind, with many promising initiatives discontinued
• But despite these setbacks, several banks and fintech companies still offer innovative solutions for eco-conscious banking

In an era where environmental consciousness is paramount, consumers are increasingly seeking ways to align their financial habits with their eco-friendly values.

The financial industry has responded with a range of eco-friendly credit and debit cards designed to promote sustainable spending and support environmental initiatives.

Several options stand out, offering not only sustainable materials but also incentives that contribute to ecological well-being.

Eco-friendly credit and debit cards offer a simple yet effective way to reduce your environmental footprint without changing your spending habits drastically.

Whether it’s through tree planting, carbon offsetting, or rewards for green purchases, these financial products provide an easy way to make a difference.

(Photo: Pexels) | Pexels

Unfortunately, while the US and Europe seem awash with promising start-ups and regional sustainable banking institutions, in our research we found that the UK falls slightly further behind.

Many of the UK’s larger banks have actually offered promising looking products in the past that have since been shuttered, for instance.

Then there was Treecard, a delightful looking start-up that offered users a debit card made entirely from sustainably sourced cherry wood, which helped fund reforestation projects with every transaction.

Unfortunately, Treecard has since ceased its debit card operations - though its app through which you can plant trees for every 10,000 steps you take remains.

And, of course, last week HSBC announced it had delayed its climate target to cut emissions from its operations and supply chain by 20 years.

The bank also said it will review its 2030 targets for reducing emissions linked to financing polluting companies. Not what we want to see.

That being said, there are still a few intriguing looking banks and fintech companies promising a greener future for your money. Here are 6 of the best looking ones we could find, simply listed alphabetically.

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Bunq

Currently only available on the continent - though it is accessible in Ireland, and recently applied for a licence to begin operating again in the UK - Bunq is a Dutch “neobank” that has been making waves.

With bunq Elite you can plant a tree for every €100 spent, and with bunq Pro it is for every €250 spent. With bunq Free and bunq Core, you can plant a tree for every €1,000 spent.

Customers can also manage their finances through an app, and while the subscription fee may not be for everyone (a free, bare bones version is available), those looking for a premium, sustainability-driven banking experience will appreciate the benefits it offers.

Starling Bank

In 2021, Starling Bank introduced the UK's first Mastercard debit card made from recycled plastic.

Sourced from EU industrial waste, primarily from printing and packaging industries, the material - rPVC - constitutes 75% of the card, with the other 25% including the chip.

Each kilogram of rPVC used saves two kilograms of CO2 emissions, and Starling, a branchless and paperless bank, also operates its four UK offices on renewable energy.

Tandem Bank

The digital-first approach continues to gain traction in the sustainable finance sector, with a lack of physical, paperless branches giving such institutions a carbon footprint edge over more traditional banking setups.

Tandem Bank’s focus is on its customers transferring to a more sustainable lifestyle, and its app gives users all the tools needed to prepare for making eco-friendly upgrades to their homes.

You can get a personalised action plan with suggestions to improve energy efficiency and lower emissions, and save recommended upgrades to your plan and see their potential savings in real time.

With a commitment to supporting sustainable living, Tandem is an excellent choice for those looking to make eco-friendly upgrades.

Tred

Tred gives account holders a Mastercard green debit card, the UK's first of its kind, crafted from recycled ocean plastic.

The innovative card, in tandem with its accompanying app, gives users the ability to monitor, reduce, and offset their carbon footprint with every transaction.

The app calculates a personalised carbon footprint based on spending habits, and users can opt into a monthly subscription to offset this footprint through tree planting and other climate-positive projects.

Tred has also committed to planting 10,000 trees in collaboration with Mastercard's Priceless Planet Coalition, aiming to plant 100 million by the end of 2025.

Triodos Bank

For those looking for a more traditional banking experience with a sustainable twist, Triodos Bank offers a range of ethical financial products, including the Triodos Debit Mastercard.

Unlike most mainstream banks, Triodos exclusively finances projects and businesses that prioritise environmental and social sustainability.

Account holders can rest assured that their money is funding renewable energy, organic farming, and ethical enterprise rather than fossil fuels or deforestation.

While it doesn’t offer rewards in the traditional sense, the transparency of Triodos’ investment strategy is a major draw for ethically minded consumers.

Wise

Wise offers an eco card made from biodegradable materials derived from sustainable sources like non-food corn.

Designed to reduce plastic waste, the Wise eco card provides all the benefits of a traditional debit card, allowing spending in over 170 countries without hidden fees.

The card's minimalist, all-white design reduces ink usage, and once it reaches the end of its lifespan, it can be disposed of sustainably, minimising environmental impact. Wise also offers digital card options to further reduce physical waste.

What do you think about the rise of eco-friendly banking? Have you tried any of these sustainable financial products, or do you have a favourite that wasn’t mentioned? Let us know your thoughts in the comments section.