On 15 July 2025, HM Treasury published its UK Green Taxonomy Consultation Response, confirming that it no longer intends to develop a UK Green Taxonomy.
HM Treasury published its UK Green Taxonomy Consultation in November 2024, seeking views on whether a UK Green Taxonomy would supplement and complement existing sustainable finance policies in the UK (you can read more about the consultation here). The consultation period closed in February 2025, and HM Treasury confirmed that it received 150 responses.
45% of respondents expressed positive sentiments towards the idea of a UK Green Taxonomy, but the other 55% expressed mixed or negative sentiments. The concerns of the latter respondents centred around the practical application of the Taxonomy and its interoperability with the UK’s other sustainability rules.
In light of these responses, and the UK Government’s analysis of the application of other jurisdictions’ taxonomies, the UK Government considers that maintaining a UK Taxonomy would be too time-consuming and could risk diverting energy away from “other activities that are more likely to drive UK economic growth”. The UK Government has therefore decided that a UK Green Taxonomy would not support its vision for the sustainable finance sector.
