Skip to content

UK Warned Not to Copy EU’s ESG Investing Rules in Key Areas

  • EU handling of real estate seen as ‘problematic’ by advisers
  • UK still advised to regard EU taxonomy as a general template

UK regulators have been advised to avoid a number of key planks in the EU’s green taxonomy including the bloc’s handling of real estate, as Britain tries to build an ESG investing framework of its own.

The EU’s treatment of sectors including real estate, shipping, bio-energy and hydrogen in its taxonomy is potentially “very problematic,” according to the UK’s Green Technical Advisory Group. Applying the same standards as those laid out in the EU rulebook would be inconsistent with the UK’s net-zero ambitions, GTAG said on Friday.