© Reuters. FILE PHOTO: Pedestrians walk past the Green Vic, which is aiming to become the world’s most ethical pub, in Shoreditch, London, Britain July 5, 2019. REUTERS/Simon Dawson
By Huw Jones
LONDON (Reuters) – Britain has set up a panel of experts to help it categorize climate-friendly properties and prevent the “greenwashing” of investments that do not meet its sustainability certifications. them.
Britain would like to see more money poured into green or sustainable investments to help the country meet its net zero environmental goals.
However, self-labeling green investments have raised concerns among regulators that investors do not have independent information to guide them.
The finance ministry said the Green Technical Advisory Group (GTAG) will oversee the delivery of a “classification” or common framework that sets the standard for investments that can be defined as environmentally sustainable.
The team, which includes representatives from academia, business and finance will provide non-binding advice to the government on developing and implementing green grading in the UK.
The classifier will help limit greenwashing and make it easier for investors and consumers to understand how a company is impacting the environment, the ministry said.
UK Financial Services Secretary John Glen said: “A UK green classification scheme would provide better data on businesses’ environmental impact, helping investors, businesses, and businesses. and consumers make green financial decisions and accelerate the transition to net zero.”
The European Union kicked off early by publishing the first part of its own taxonomy in April, listing economic activities and detailed climate-related criteria it must meet in order to labeled as a green investment.
But after months of fierce lobbying from governments and industry, Brussels says it will take longer to categorize politically sensitive sectors such as nuclear power.
The UK finance ministry said the government would set up a separate energy working group as part of GTAG to provide advice on hydrogen, carbon capture, use and storage and how to tackle energy. nucleus in the classification.
The GTAG, which will be chaired by Ingrid Holmes from the Green Finance Institute, will meet for the first time this month and run for at least two years, delivering initial recommendations to the government in September.
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