On 5 October 2023, the Green Technical Advisory Group (GTAG) published a final advice paper on creating an institutional home for the UK Green Taxonomy.
The GTAG has assessed the options for creating an institutional home for the taxonomy, which are informed by the UK Government’s stated preference for bringing forward taxonomy-related disclosures, and recommends the following:
- As a “least regrets” options, in the short term (next 3-6 months) the Government should establish an Advisory Body to support implementation/development of the taxonomy through executive action. This could be achieved either by providing additional funding and responsibilities to an existing body (e.g., the Financial Reporting Council/Audit, Reporting and Governance Authority (FRC/ARGA) or creating a new entity (e.g., “GTAG 2.0”).
- In parallel, to prepare for the medium-term (post end-2024), the Government should initiate the process of legislating for long-term statutory decision-making powers. Again, this could be through granting powers/responsibilities and financial support to an existing body or creating a new organisation. The statutory footing would strengthen investor confidence in the Government’s commitment to a robust and science-based taxonomy and also strengthen the UK’s institutional green finance capability and thus governance credentials, which will strengthen the UK’s leadership on this agenda internationally.
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