UK Taxonomy is go go go
22 June 2021
On the 9 June 2021 the UK Government announced the establishment of a new group, the Green Technical Advisory Group ("GTAG") which will oversee the Government’s delivery of the UK's “Green Taxonomy” – a framework which – like its European equivalent - will determine whether investments can be defined as environmentally sustainable or not. The UK has previously committed to establishing its own UK Taxonomy by the end of 2022. The launch of the GTAG is a critical element to achieving this.
The focus of the GTAG will be the establishment of the UK's technical screening criteria which determines whether an economic activity can or cannot be deemed to be environmentally sustainable. Like its European counterpart the TEG, the GTAG will provide non-binding advice to the government on market, regulatory and scientific considerations for the development and implementation of the UK's Taxonomy.
The membership of the GTAG will draw on representatives of users of the taxonomy, data experts, and academia and subject matter experts. The UK's financial regulators will participate in the role of observers only.
The UK Taxonomy will apply to both financial and non-financial firms. The GTAG has been established for an initial period of two years with the aim of meeting quarterly. From the European experience, however, the GTAG will need to get a move on. If the UK intends to launch its UK Taxonomy by the end of 2022, financial services firms and corporates need clarity on what will be included in the UK's technical screening criteria sooner rather than later.
The focus of the GTAG will be the establishment of the UK's technical screening criteria which determines whether an economic activity can or cannot be deemed to be environmentally sustainable. Like its European counterpart the TEG, the GTAG will provide non-binding advice to the government on market, regulatory and scientific considerations for the development and implementation of the UK's Taxonomy.
The membership of the GTAG will draw on representatives of users of the taxonomy, data experts, and academia and subject matter experts. The UK's financial regulators will participate in the role of observers only.
The UK Taxonomy will apply to both financial and non-financial firms. The GTAG has been established for an initial period of two years with the aim of meeting quarterly. From the European experience, however, the GTAG will need to get a move on. If the UK intends to launch its UK Taxonomy by the end of 2022, financial services firms and corporates need clarity on what will be included in the UK's technical screening criteria sooner rather than later.
