Legal & Regulatory News

GTAG releases report on promoting the international interoperability of a UK green taxonomy

On 23 February 2023, the UK's Green Technical Advisory Group (the GTAG), a group of leading financial industry experts advising the UK Government on the design and implementation of a UK green taxonomy, released a report looking at promoting the interoperability of any future UK green taxonomy.

Within the Report, the GTAG provide ten recommendations for harmonising international taxonomy regimes and for ensuring that the UK remains a leader in green finance and financial services. The GTAG notes that maintaining a comparable approach to the design of the UK green taxonomy will be key in ensuring free cross-border financial flows beyond the green agenda.

The recommendations of the GTAG include:

• The UK green taxonomy should adopt the same broad concepts, methodologies and metrics as existing international policies and advocate that other non-taxonomy countries do the same;
• Ensure any technical screening criteria are robust and science-based to demonstrate international leadership;
• Conduct 3-yearly reviews to assess any future taxonomy's effectiveness in light of the changing international standards and the demands of the real economy; and
• Develop and publish a list of equivalent units, where needed, in the first instance, to allow for differences in the measurement practices carried out in respective jurisdictions and help with the comparison of data.

Click here to view the Report.

Click here to view the press release.