UK Taxonomy – GTAG

UK Taxonomy – GTAG

The Green Technical Advisory Group (GTAG) will provide independent advice to Government on implementing a UK taxonomy – a common framework setting the bar for investments that can be defined as environmentally sustainable. This will help tackle ‘greenwashing’, improve understanding of environmental impact to help companies and investors make informed green choices, support investment in sustainable projects and boost efforts to tackle climate change.

The Green Technical Advisory Group or “GTAG” is an expert group chaired by the Green Finance Institute, made up of key financial market stakeholders and subject matter experts that will provide independent, non-binding advice to the Government on developing and implementing a green taxonomy in the UK context, comprised of technical screening criteria (“TSC”) on particular economic activities.

A robust, science-based taxonomy will accelerate investment in

climate-friendly projects by establishing a common, clear and granular definition of the economic activities that will characterise the UK’s future green economy. The UK taxonomy will build on existing international taxonomies, including the EU taxonomy, and will focus on net-zero in the UK context. It is an opportunity for the UK to set a high bar globally with a rigorous, science-based taxonomy that helps accelerate green finance and support the UK’s transition to a net zero economy.

“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.”

John Glen MP, Economic Secretary to the Treasury

Role of the GTAG

The role of the GTAG will be to provide non-binding advice to HMG on market, regulatory and scientific considerations for developing and implementing a UK taxonomy which facilitates more informed investment decisions. This includes advising on:

  • Approach to developing a UK taxonomy that is usable and practicable for financial and non-financial firms.
  • UK taxonomy requirements which drive informed decision-making for investors whilst placing a proportionate burden on business.
  • Drawing together scientific and subject matter expertise to assist HMG in determining TSC.
  • The rationale, implications and recommendations for any deviations from existing international frameworks or taxonomies.
  • How to manage any data gaps.
  • How the UK Taxonomy can best support the UK’s transition to Net Zero.
  • How the taxonomy could be used to align and accelerate the delivery of wider HMG policy, including its Net Zero Strategy, Green Finance Strategy and 25 Year Environment Plan.
  • The role the taxonomy could play in tracking green financial flows.

In addition, the Group may advise HMG on other issues if identified by HMG. The GTAG’s role is advisory. It will feed into but not replace the Government’s policy development process, and the TSC will be subject to appropriate, open consultation prior to making. Further details about the role of GTAG can be found in the Terms of Reference.

GTAG Members

The GTAG consists of 18 members, plus a chair, made up of financial and business stakeholders, taxonomy and data experts, and subject matter experts drawn from academia, NGOs, the Environment Agency and the Committee on Climate Change.

Ingrid Holmes
Green Finance Institute
Chair, GTAG

“A UK-specific taxonomy based on robust science is essential to underpin the UK’s ambitious net-zero goals clarifying which activities can be considered environmentally sustainable.”

Users of the taxonomy – Financial Services

Faith Ward
Institutional Investors Group on Climate Change

James Alexander
UK Sustainable Investment and Finance Association

Elizabeth Gillam
International Regulatory Strategy Group

Users of the taxonomy – Non-Financial Services

Nick Molho
Aldersgate Group

Rain Newton-Smith
Confederation of British Industry

Taxonomy & Data Experts

Mike Thompson
Committee on Climate Change

Alyssa Heath
Principles for Responsible Investment

Prashant Vaze
Climate Bonds Initiative

Lily Dai
FTSE Russell, London Stock Exchange Group

Olivia Mooney
Principles for Responsible Investment

Nadia Humphreys
Bloomberg

Anna Bond
Environment Agency

Academia & Subject Matter Experts

Paul Fisher
Cambridge Institute for Sustainability Leadership

Theodor Cojoianu
Queen’s University

Ben Caldecott
Centre for Greening Finance and Investment

Rhian-Mari Thomas
Taskforce on Nature-Related Financial Disclosures (TNFD)

Nick Robins
Grantham Institute/LSE

NGOs

Kate Levick
E3G

Karen Ellis
WWF

Observer Group

  • HM Treasury
  • Financial Conduct Authority
  • Bank of England
  • Other relevant HMG departments and regulators

GTAG Members

Taxonomies have been developed in the EU, China, Malaysia, Bangladesh and Russia. The UK taxonomy will build on these existing taxonomies, including the EU taxonomy and will focus on net-zero in the UK context. This is an opportunity for the UK to set a high bar globally with a science-based taxonomy. For more information please contact info@gfi.green.

For media enquiries please contact comms@gfi.green.

 

GTAG Resources

GTAG
Operational Context

GTAG
Structure

GTAG Minutes

Meeting 1:
23 June 2021