On March 30, 2023, the Department for Energy Security and Net Zero published an update to the government's 2019 Green Finance Strategy. The 2023 update focuses on the need for green investment and on opportunities for the UK's financial and professional services, in light of the UK's target for net zero by 2050 and the environmental objectives in the Environmental Improvement Plan.

The updated Strategy sets out the measures the government is planning to take to achieve its objectives in relation to green finance. Most of these are not new announcements. The expected key next steps on developments include:

  • A consultation in autumn or winter 2023 on requiring the largest companies to disclose net zero transition plans.
  • A consultation in autumn 2023 on proposals for a UK green taxonomy.
  • Assessing the suitability for the UK of the global sustainability disclosure standards being prepared by the International Sustainability Standards Board. The final standards are expected to be published in summer 2023.

New announcements include the government's plans to:

  • Call for evidence on reporting scope 3 greenhouse gas emissions.
  • Consult on the interventions needed to support the growth of high integrity voluntary carbon markets.

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