UK creates advisory group to oversee green taxonomy
The UK Green Taxonomy, a common framework setting the bar for investments that can be defined as environmentally sustainable, is an attempt to clamp down on greenwashing. The Green Technical Advisory Group (GTAG), an independent expert group, will provide independent, non-binding advice to the government on developing and implementing a green taxonomy in the UK context.
The UK green taxonomy will provide better data on the environmental impact of firms. With new sustainable funds entering the market and sales to retail investors tripling from 2019 to 2020, better data will help companies, investors, and consumers to make informed investment decisions and support sustainable projects. “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,” said John Glen, economic secretary to the Treasury.
The Green Finance Institute, comprising financial and business stakeholders, experts from academia, NGOs, and other organisations, will chair the advisory group. An Energy Working Group will also be established as a part of the GTAG to provide advice on key technologies such as hydrogen, carbon capture, utilisation, and storage. It will also address nuclear power’s role in the taxonomy, which will be a key element in UK’s net zero plans.