Objective
Directing investments towards sustainable activities aligned with climate objectives. Announced in the Green Finance Strategy (2019; updated 2023)
Description
The proposed UK Green Taxonomy is an instrument within the fields of sustainable finance, green finance, climate governance, and sustainable investment. It was a proposed classification framework designed to define environmentally sustainable economic activities and provide activity-level standards for sustainable finance. The proposed UK Green Taxonomy aimed to support the allocation of capital to sustainable activities, reduce greenwashing, provide a common framework and language for sustainable economic activities, and help investors, businesses, and consumers identify environmentally sustainable activities. Stakeholders involved included, among government institutions, HM Treasury and UK government departments involved in sustainable finance policy; and among advisory bodies, the Green Technical Advisory Group (GTAG) and the Land, Nature and Adapted Systems (LNAS) Advisory Group. Among the key organizations involved were the Green Finance Institute (GTAG Secretariat), financial institutions, asset managers, banks, industry associations, NGOs, academic institutions, regulators, and professional bodies. Consultation respondents identified potential uses for the taxonomy as guiding investment decisions, supporting shareholder engagement, supporting green bonds and other sustainable finance products, supporting sustainability reporting, and supporting broader climate and environmental policies. Following a public consultation conducted between November 2024 and February 2025, the UK government concluded that the UK Green Taxonomy would not be pursued and would not form part of the UK sustainable finance framework.
Country
United Kingdom
Ladder
National
Nature
Financial
In which law/program is this instrument included?
Green Finance Strategy 2019
The development and abandonment of the British green taxonomy
The UK's green taxonomy is a case in which significant policy design and development work was undertaken before the final decision was made not to implement the instrument. Available documentation shows that this process relied on extensive consultation involving financial institutions, industry representatives, trade associations, NGOs, academics, regulators, and government bodies. The Green Technical Advisory Group (GTAG) played a central role in providing expertise and recommendations throughout the development process. However, the consultation revealed differing views on the added value of a UK taxonomy: while some participants considered it a useful common framework, others questioned its practical advantages compared to existing sustainable finance policies and frameworks already used by market participants.
Chronology of the instrument
The Directory of Researchers of the Instrument
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Ninaka Berdzenishvili
Fieldwork in Georgia and the United Kingdom (WP2 & WP3) | PhD Candidate, Paul-Valéry University Montpellier 3 / CIRAD
Library and Documents
