Britain is considering the introduction of "green bonds" offered to the public to help fund the sustainable energy industry, a newspaper reported Monday.

Ian Pearson, economic secretary to the finance ministry, told the Financial Times that he had asked officials to examine the idea of bringing in the new form of government borrowing.

The bonds, which would be issued by state-backed bank National Savings and Investments, would be used to attract investors to sustainable energy production, said the paper.

Their introduction would come at a time Britain is seeking new ways to finance infrastructure projects as it fights to balance the books in the wake of the worst recession for decades, it added.

Pearson further said officials were looking at offering long-term contracts to windfarms and green waste companies to supply the public sector as a way of saving money and giving the industry a boost.

"We are thinking of going direct to companies looking to establish energy from waste and windfarm projects and offering them long-term contracts that would both get the public sector a good deal on price but also get the projects off the ground," he said.

"If they had, say, a 15-year contract to supply the public sector, that should make it easier for them to raise finance to get the projects going, while tying in with the green agenda."