IIGCC has formally responded to the UK Government's consultation on the value case for a UK Green Taxonomy as part of the UK’s wider sustainable finance framework.
We have provided detailed responses to the UK Government's call for views on whether a UK Green Taxonomy would be additional and complementary to existing sustainable finance policies.
View the consultation paper
Our response, developed in consultation with IIGCC members and informed by participation in the Green Technical Advisory Group (GTAG), highlights the additive role a UK Green Taxonomy would play in implementing core sustainable finance policies to increase transparency and support the reorientation of capital towards the UK’s climate and nature objectives.
A Taxonomy would support assessment of sustainability of activities and projects against science-based criteria. And could help to address greenwashing and increase transparency over climate solutions, all of which should help to facilitate investment in the transition to a net zero economy.
Alongside it's potential advantages, however, the effective implementation of a UK Green Taxonomy also faces limitations, such as the timeframe necessary to properly build and implement a taxonomy, and the opportunity cost of assigning resources to support its development.
Ultimately, a Taxonomy is only one tool amongst many on the pathway to net zero. Any implementation should be coordinated with other policies and tools that will also support the UK’s transition, particularly real economy policies that will materially accelerate decarbonisation and growth.
