IRSG Recommendations for reviewing the EU Taxonomy for UK application

Published 28 May 2021

The International Regulatory Strategy Group (IRSG) has set out its recommendations for reviewing the EU Taxonomy for UK application.

In the paper, while recognising some of the limitations of the EU’s approach, the IRSG endorses the approach that the UK Government has set out for the UK to stay aligned to the EU taxonomy in the short-term, and urges HMG to accelerate progress on this with a view to providing significant clarity to UK issuers and financial market participants in advance of COP26. The paper considers the purpose and usability of the EU Taxonomy as well as practical challenges when implementing a version of the EU Taxonomy that reflects the needs and specificities of the UK economy.