Emma RadmoreThe UK Finance response to the Treasury’s consultation on a UK Green Taxonomy shows that members hold different views as to whether a taxonomy would be useful in supporting the Government’s objectives. On balance, the response calls for the Government to focus on real economy policy incentives and existing sustainable finance policy measures. It wants to see the Government changing the investment case through real economy and industrial policies and make progress in implementing existing sustainable finance commitments. It sees these as being greater priorities than a taxonomy.
Some members think existing regulations and new policy measures would be more effective and sufficient on their own. Others think there would be a value in a UK-endorsed taxonomy that is voluntary and inter-operable with existing global taxonomies. So, the response concludes that any taxonomy the Government may implement should be voluntary in terms of both reporting and use for design, labelling and marketing of products, and should be designed to help mobilise transition finance. It would also need to be internationally operable.