The Green Technical Advisory Group, which is guiding the UK government’s implementation of a UK Green Taxonomy, has issued detailed advice for the upcoming legislation.
By Paul A. Davies, Michael D. Green, and James Bee
In September 2023, the Green Technical Advisory Group (GTAG), chaired by the Green Finance Institute, has released four reports offering technical advice to HM Treasury on the development of a UK Green Taxonomy:
- “Developing a UK Taxonomy Adapted to the UK’s Needs” — assesses short- and medium-term priorities for establishing a usable taxonomy
- “Getting KPIs Right: Implementing an Effective Reporting Regime for the UK Green Taxonomy” — outlines issues in European taxonomy reporting Key Performance Indicators (KPIs)
- “Treatment of green financial products under an evolving UK Green Taxonomy” — reviews how the UK Green Taxonomy affects previously considered “green” activities
- “Operational considerations for taxonomy reporting” — provides recommendations for minimising data gaps in disclosures and guidance on the use of proxies
GTAG’s latest guidance seeks to provide a roadmap for the UK Green Taxonomy. While it draws on many elements of the EU taxonomy, GTAG has stated that it has looked to adapt the UK Green Taxonomy to provide a “more effective reporting framework” for both disclosing businesses and investors within the UK context.