Pragmatic response from the UK Government to drop UK Green Taxonomy as announced alongside publication yesterday of its Financial Services Growth and Competitiveness Strategy,
See UK Drops Plans for Sustainable Finance Taxonomy - ESG Today
It concluded that a UK Green Taxonomy would not adequately support the Government's objectives of channelling capital and reducing greenwashing and that work to develop a taxonomy should therefore not proceed. Respondents felt other policies were of higher priority to accelerate investment into the decarbonisation transition and to limit greenwashing. The Treasury cites the UK Sustainable Reporting Standard (UK SRS), transition plans and sector roadmaps, and real economy policies and economic incentives as policies that were considered higher priorities by consultation respondents.
The strategy reiterates the Government's view that the climate and nature transitions present a significant growth opportunity, and that it is committed to maintaining the UK's position as a global leader in sustainable finance. It sets out a "streamlined" regulatory framework for sustainable finance which aims to prioritise efforts on policies that will have the greatest impact and enhance the UK's position.
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James Doyle
Director, Green Finance, Investment Management
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