April 2023
Under the headline of ‘Mobilising Green Investment’, the UK Government has published a revised Green Finance Strategy (PDF 26.9 MB), aimed at supporting the delivery of the transition to net zero. The strategy has been developed by HM Treasury (HMT), the new Department for Energy Security and Net Zero and the Department for Environment, Food and Rural Affairs. It refreshes the original (PDF 12.2 MB) strategy, set out in 2019, and moves forward some of the initiatives announced in the 2021 Roadmap to Sustainable Investing (PDF 2.03 MB).
The updated strategy is underpinned by five key objectives which aim to ‘reinforce and expand the UK’s position as a world leader on green finance and investment’:Â
- UK financial services growth and competitiveness.
- Investment in the green economy.
- Financial stability.
- Incorporation of nature and adaptation.
- Alignment of global financial flows with climate and nature objectives.
The document is in three sections. Chapter 1, ‘Foundations’, looks at the UK’s approach to green finance. Chapter 2, Align’, focuses on enabling the market to align with UK climate and environmental goals. And Chapter 3, ‘Invest’, considers how to mobilise and create opportunities for green investment. Â
From a regulatory perspective, the key areas of interest are in Chapter 2 — these include the development of the UK Green Taxonomy, next steps for the Government’s Sustainability Disclosure Requirements (SDR) framework, transition plans, product labels and alignment with international disclosure standards. Alongside the main strategy document (and among many other publications), the Government has also issued a consultation on ESG Ratings providers, a Nature Markets Framework and its response to the January 2023 Independent Review of Net Zero (PDF 6.58 MB).