Source · Select Committees · Environmental Audit Committee
Recommendation 18
18
Acknowledged
Delays to the introduction of the UK green taxonomy are concerning.
Conclusion
While we welcome the Government’s intention to introduce a UK green taxonomy, we are concerned to note the delays to its introduction. As with transition plan frameworks and disclosures, we support the principle of a mandatory taxonomy to ensure comparability. (Paragraph 111) The financial sector and the UK’s net ero transition 61
Government Response Summary
The government acknowledges the committee's concerns about delays and confirms it is working at pace to publish a consultation on the Green Taxonomy shortly. It plans a testing period of voluntary disclosures for at least two reporting years before considering mandatory obligations, citing complexity and a need for usability.
Government Response
Acknowledged
HM Government
Acknowledged
The Green Finance Strategy 2023 committed to implementing a UK Green Taxonomy, an important tool to increase transparency into the market to mobilise private investment into green activities and to tackle greenwashing. Developing a usable and useful taxonomy is a complex and technical exercise and the Government continues to work at pace and expects to publish a consultation on this shortly. In the Green Finance Strategy 2023, the Government set out that we will consider the introduction of mandatory company disclosures against the Taxonomy once it has had opportunity to bed in. The Government will therefore introduce a testing period of voluntary disclosures for at least two reporting years before considering the introduction of mandatory obligations. This is to ensure that the Taxonomy provides accessible and reliable information that is useful to markets. We will monitor the voluntary reporting period carefully following consultation. The Government does not wish to place undue burdens onto companies whose size or scale makes the disclosure of taxonomy-related information unreasonable. Therefore, we will develop proposals with proportionality in mind. We thank the Green Taxonomy Advisory Group for their expert advice on developing the Taxonomy and the members of the Energy Working Group for their advice on the development of criteria in the energy sector. Following the consultation, the Government will consider what external advice is required going forward.