The government has created a working group to help it create a green taxonomy in the UK.
The Green Technical Advisory Group (GTAG) will oversee the delivery of the green taxonomy in the UK, giving advice to the government on developing the framework, supporting investors, consumers and businesses to make green financial decisions and will clamp down on greenwashing.
GTAG will be chaired by the Green Finance Institute, and will be made up of financial and business stakeholders, taxonomy and data experts, as well as subject matter experts from the Environment Agency, the Committee on Climate Change, NGOs and academia.
The green taxonomy will be the UK's version of the EU’s regulation on sustainability disclosures in the financial sector, known as SFDR, which came into effect on March 10 but was not implemented in the UK.
Experts have previously warned that the UK government will implement similar rules to the SFDR and that advisers should consider following it as good practice.
John Glen, economic secretary to the Treasury, said: “We want investors and businesses to play their part in greening our economy and transitioning to net zero, so it’s crucial we have a clear common definition of what green means.
“A UK green taxonomy will provide better data on the environmental impact of firms, supporting investors, businesses and consumers to make green financial decisions and accelerating the transition to net zero.
“I look forward to receiving the advice of the expert Green Technical Advisory Group as we put in place a rigorous taxonomy that works for the UK and sets a high standard globally.”
Ingrid Holmes, executive director of the Green Finance Institute, added: “The GTAG will play a key role, advising the government on implementing a robust, science-based taxonomy that is adapted to the specific needs of the UK context, and works for all stakeholders.
“We’re delighted to chair the GTAG, and to welcome all 18 members onboard, all of whom have a demonstrable interest and/or track record of being engaged on the issue of developing and using taxonomies, and the practicality of applying a taxonomy in a UK-specific context.”