Britain set up a green taxonomy to help stop greenwashing

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Britain set up a green taxonomy to help stop greenwashing

On 5 July 2019, pedestrians walk near the Green Vic, which aims to be the world's most ethical pub, in Shoreditch, London, Britain. REUTERS Simon Dawson, of course.

Britain has set up a group of experts to help it stop sustainable assets and classify greenwashing of investments that are not living up to their climate-friendly credentials.

Britain is keen to see more money flowing into green or sustainable investments to help it meet the green zero objective.

However, self-labelled independent investments have raised concerns among regulators that investors don't have green information to guide them.

The minister of Finance said the Green Technical Advisory Group will oversee the delivery of a taxonomy or sustainable framework that set the bar for investments that can be documented as generally shared.

The group will consist of representatives from academia, business and finance to provide green advice to the government on developing and implementing a non-binding taxonomy in Britain.

A taxonomy will help scrap greenwashing and make it easier for investors and consumers to understand how a firm is impacting the environment, said the ministry.

A UK green taxonomy will provide better company data on the impact of companies, supporting investors, businesses and consumers to make Green Financial decisions and accelerating the transition to net zero, said Britain's financial services minister John Glen in a statement.

The European Union moved in April by publishing the first part of its own taxonomy, which lists climate-specific activities and detailed criteria that they must meet to be labelled as an green investment.

But now, after months of politically sensitive lobbying from governments and industry, Brussels said it would take more time for how to classify sensitive areas like natural gas and nuclear power. Britain's finance ministry announced that the government will set up a separate Energy Working Group as part of GTAG to give advice on hydrogen, carbon capture, utilisation and storage, and how to address nuclear power in the taxonomy.

The Green Finance Institute, which will be chaired by Ingrid Holmes of the GTAG, will meet for the first time this month and run for at least two years before serving its initial recommendations to the government in September.

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