As part of her 2024 Mansion House speech, UK Chancellor of the Exchequer Rachel Reeves unveiled a consultation to collect views on the need for a national Green taxonomy. Already introduced in several jurisdictions, taxonomies define economic activities aligned with sustainability goals across multiple sectors, providing guidance to corporates and investors, and mitigating greenwashing. “However, the government is aware that taxonomies can be complex in practice, and feedback on their value is mixed,” a government statement said. The consultation asks for feedback on whether a UK taxonomy would be “additional and complementary” to existing sustainable finance policies, but not on specific economic activity-level standards. Interoperability with other taxonomies – such as the EU – has been identified as a priority within the consultation, with the government suggesting a UK iteration would utilise a recognised taxonomy format and targeted coverage, as well as implement quantified thresholds and recognise science-based metrics wherever possible. “The government is committed to learning the lessons from taxonomy implementation in other jurisdictions and gathering the feedback of market participants,” the consultation said. The consultation is open to feedback until 6 February 2025. In addition, the government announced its intention to consult on streamlining sustainability disclosures for economically significant companies.
