Sustainable finance

Sustainable finance

Sustainable finance—content

Content on sustainable finance in this subtopic includes the following:

An introduction to sustainable finance

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Sustainable finance and ESG—overview—provides details on climate change and sustainability issues facing the financial sector. It provides an introduction to the area, setting out why climate change and sustainability is such a hot topic and explains how that has affected the financial sector especially when dealing with risk and financial stability. The Practice Note provides information on the global and European policy and legislative initiatives in this area, such as the Paris Agreement 2015, Sustainable Development Goals (SDGs), Principles for Responsible Investment (PRI), Principles for Responsible Banking (PRB), Task Force on Climate-related Disclosures (TCFD), Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector (SFDR), Regulation (EU) 2020/852 on the establishment of a framework to facilitate sustainable investment and amending Regulation (EU) 2019/2088 (Taxonomy Regulation) and Regulation (EU) 2019/2089 amending Regulation (EU) 2016/1011 as regards EU climate transition benchmarks, EU Paris-aligned benchmarks and sustainability-related disclosures for benchmarks (Low Carbon Benchmark Regulation). Policy developments, alongside regulatory and legislative measures in the UK level are also covered, as well as developments from

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Latest Environment News

Defra announces plans to extend PACE and POCA powers to EA officers

The Department for Environment, Food and Rural Affairs (Defra) has announced plans to extend powers under the Police and Criminal Evidence Act 1984 (PACE 1984) and the Proceeds of Crime Act 2002 (POCA 2002) to Environment Agency (EA) enforcement officers to strengthen enforcement against waste crime. The proposed reforms enable officers to intervene earlier in criminal activities and disrupt the financial activities that support waste crime groups. Defra has also confirmed that a new Waste Crime Action Plan will be published soon to outline the government's comprehensive approach to tackling these crimes and under separate proposed legislation, waste criminals could face up to five years for illegal transportation and dealing of waste.

European Affairs Committee launches inquiry into UK-EU dynamic alignment

The House of Lords European Affairs Committee has launched a call for evidence in a new inquiry into dynamic alignment, as part of the parliamentary scrutiny of the government’s UK-EU reset. As the ten year anniversary of the Brexit vote approaches, the inquiry will examine the implications of new UK-EU agreements under which the UK would align with certain areas of EU law, participate in EU law decision-shaping processes, and make financial contributions to relevant EU activities. The inquiry will investigate dynamic alignment and associated issues, including the arrangements for implementation and parliamentary scrutiny of dynamic alignment, the implications for the UK devolved administrations, and the broader economic, regulatory and trade impact. The inquiry hopes to inform parliamentary consideration of the proposed ‘Reset Bill’, also referred to as the ‘Dynamic Alignment Bill’, which is expected in 2026, to provide for domestic implementation of the UK-EU reset agreements, including dynamic alignment. Written evidence should be submitted by 9.00am on 20 April 2026. Public evidence sessions will start on 24 March 2026, with the Committee aiming to report later in the year.

DESNZ launches industry engagement for new Hydrogen Network Code development

The Department for Energy Security and Net Zero (DESNZ) has announced the commencement of industry engagement on the development of a new Hydrogen Network Code (the Code) for hydrogen pipeline networks. Network codes are legal documents forming the basis of arrangements between network owners and users. As set out in the government’s response to the Hydrogen Economic Regulatory Frameworks Consultation, government will lead the development of the Code in partnership with industry and in close collaboration with Ofgem and other relevant stakeholders. DESNZ will host an introductory webinar in April 2026 to outline its proposed engagement approach and the process for developing the first issue of the Code. Industry engagement will take place at two levels: (1) a Code Engagement Forum, open to all Code-relevant stakeholders and intended to provide periodic updates on Code development; and (2) a smaller Code Advisory Group, comprising representatives of interests across hydrogen pipeline networks, with membership determined via an Expression of Interest (EOI) process to be launched during the webinar. The engagement is expected to be relevant to prospective hydrogen producers, transporters, storage providers and offtakers, including industrial users and hydrogen-to-power plants, as well as trade bodies, with further details on selection criteria and Terms of Reference to be provided at the first session.

DESNZ launches consultation on streamlining UK ETS rules for cross-boundary CCS pipelines

The Department for Energy Security and Net Zero (DESNZ) has launched a consultation on proposed changes to the regulatory framework for cross-boundary carbon capture and storage (CCS) pipelines under the UK Emissions Trading Scheme (ETS), which is jointly administered by the UK ETS Authority, comprising the UK Government, Scottish Government, Welsh Government and the Department of Agriculture, Environment and Rural Affairs for Northern Ireland (DAERA). The consultation closes on 4 June 2026