Guernsey Finance welcomes the publication of guiding principles for the development of taxonomies published today by the International Network of Financial Centres for Sustainability (FC4S), 'Building Shared Language for Green and Sustainable Finance'.

Guernsey, identified by the think-tank Z/Yen as an "emerging contender" in green finance, launched the world-first 'Guernsey Green Fund' regulatory product earlier this year. It is an observer to FC4S, the international network for global finance, which is a partnership between global financial centres and the United Nations.

UNFC4S's statement, 'Building Shared Language for Green and Sustainable Finance', sets out how new definitions, taxonomies, and other classifications for sustainable finance should be developed. The proposals are intended to reduce transaction costs, build market trust, and provide foundations for the development of standards, products and asset classes.

Dominic Wheatley, Chief Executive at Guernsey Finance, said: "Guernsey is at the forefront of the development of green finance. I am proud that we are an engaged member of this international community, and as such fully endorse and welcome these developments from FC4S."

FC4S, in a statement announcing the publication of the principles, said today: "It is now evident that a shared language for green and sustainable finance is required to undergird market integrity, ensure compatibility, and drive coherence in practices and approaches of financial institutions, regulators, and policy institutions.

"A shared language for sustainability can be a valuable public good for the world's financial system. It is in the core interest of the world's financial centres that different efforts to develop definitions, taxonomies and standards converge to a high level of compatibility."

UNFC4S underscores the significance of green and sustainable finance as a vital force in global capital markets and is promoting a joined-up approach to take forward progress in this area.

The statement followed a high-level round table meeting on sustainable finance which took place today in Halifax, Canada.

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