Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to the report on the UK Green Taxonomy published by the APPG on Environmental, Social, and Governance, whether the UK Green Taxonomy should be (a) credible, (b) useable, and (c) interoperable.

The UK is a leading centre for green finance, with London having been ranked first in the world for a third year, according to the Global Green Finance Index. It is important that our approach for the taxonomy builds on this and contributes to our ambition to be the world’s first net zero-aligned financial centre.

The value of a taxonomy rests on its credibility as a practical and useful tool for corporates and investors, that its users recognise as science-based. It is important that we learn from the approach taken in other jurisdictions, and take the time to get this right for the UK and the market. The UK Green Taxonomy Consultation is under review and the government will be setting out next steps in due course.

The government has been engaging closely with the independent Green Technical Advisory Group and is considering the recommendations which they have recently published. The government has noted the publication of the UK Green Taxonomy report, by the APPG on Environmental, Social, and Governance, and will consider the views of a variety of stakeholders as it prepares to set out its next steps.

The Government has also been supporting the development of international standards in green finance, for example through the International Sustainability Standards Board.