The UK government must send a “rapid market signal” to investors, regulators and companies as to whether the UK Green Taxonomy will be adopting the EU taxonomy’s technical screening criteria (TSC), and what form any revisions will take to reflect UK-specific needs. This is “to ensure market certainty and a sense of continued relevance for the UK Green Taxonomy for market participants”, according to part one of advice published today by the Green Technical Advisory Group (GTAG). The guidance outlines recommendations for onshoring the EU taxonomy, international interoperability, do no significant harm (DNSH) criteria, and taxonomy use cases. GTAG was established in 2021 to provide independent advice to the government on implementing a Green Taxonomy. In response to the guidance, James Alexander, CEO of the UK Sustainable Investment and Finance Association (UKSIF), said: “It is positive to see confirmation of the GTAG’s recommendations emphasising the importance of the taxonomy’s usability for investors, and for the UK in its initial approach to onshore the majority of the EU’s TSCs to minimise the costs of divergence for firms. Going forward, we would like to see the GTAG’s work continue at pace with regular transparency on its advice provided to the market and other stakeholders. The government now needs to quickly restate the UK’s commitment to moving ahead with implementing a taxonomy, with further delays leaving the UK further behind the EU and other jurisdictions in its leadership on green finance.”
