Britain has set up a group of experts to help it classify climate-friendly assets and stop "greenwashing" of investments that don't live up to their sustainable credentials.
Britain
is keen to see more money flowing into investments that are green or
sustainable to help it meet net-zero environmental goals.
Self-labelled
green investments, however, have raised concerns among regulators that
investors don't have independent information to guide them.
The
finance ministry said the Green Technical Advisory Group (GTAG) will
oversee the delivery of a "taxonomy" or common framework that sets the
bar for investments that can be defined as environmentally sustainable.
The
group, made of representatives from academia, business and finance will
provide non-binding advice to the government on developing and
implementing a green taxonomy in Britain.
A
taxonomy will help clamp down on greenwashing and make it easier for
investors and consumers to understand how a firm is impacting the
environment, the ministry said.
"A
UK green taxonomy will provide better data on the environmental impact
of firms, supporting investors, businesses and consumers to make green
financial decisions and accelerating the transition to net zero,"
Britain's financial services minister John Glen said in a statement.
The
European Union moved early by publishing the first part of its own
taxonomy in April, listing economic activities and the detailed
climate-related criteria they must meet to be labelled as a green
investment.
But
after months of fierce lobbying from governments and industry, Brussels
said it would take more time over how to classify politically sensitive
areas like natural gas and nuclear power. read more
Britain's
finance ministry said the government will set up a separate energy
working group as part of GTAG to provide advice on hydrogen, carbon
capture, utilisation and storage, and how to address nuclear power in
the taxonomy....
more at Reuters
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