Legal & Regulatory News

FCA to launch programme of work to support firms in overcoming sustainable finance and climate change challenges

10 August 2021

The innovation branch of the UK's Financial Conduct Authority (FCA Innovation) has announced the launch of a programme of work to assist firms and regulators to overcome some of the challenges that moving to a net zero economy will raise in the area of sustainability and climate change. This work includes a 'Second Digital Sandbox' pilot (the Digital Sandbox) and a 'Green FinTech Challenge 2021' (the Green FinTech Challenge):

  • Digital Sandbox - The Digital Sandbox follows an earlier pilot this year, and will consist of a programme to provide support to start-ups and innovators in developing and validating working proofs of concept to improve the transparency of ESG-related market disclosures and consumer understanding of the ESG characteristics of the products and providers they are engaging with.
  • Green FinTech Challenge – The Green FinTech Challenge is open to applicants from firms developing innovative green solutions that require regulatory support to bring their proposition to market. The Green FinTech Challenge is open to start-ups, incumbents and technology providers that meet certain eligibility criteria set out by FCA Innovation, and will support live market testing of new products and services that will aid the transition to a net zero economy.

Application windows for both of these programmes opened on 6 September 2021. Applications for the Digital Sandbox close on 11 October 2021 and applications for the Green FinTech Challenge close on 15 November 2021.

Click here for more information on the Digital Sandbox.

Click here for more information on the Green FinTech Challenge.