The uk-eu relationship in financial services

Green finance
223. Green finance refers to structuring financial activity in a way that allows 
growth without harming the environment. The UK’s Greening Finance 
Roadmap, published in October 2021, sets out how the UK financial system 
can go about aligning with the Government’s Net Zero commitments, 
including through the development of a UK Green Taxonomy (which 
would establish criteria to define sustainable investment to prevent so-called 
279 HM Treasury, 
Kalifa Fintech Review Final Report
(26 February 2021): 
https://assets.
publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/978396/
KalifaReviewofUKFintech01.pdf
 [accessed 7 June 2022]
280 HM Treasury, ‘Centre for Finance, Innovation and Technology: Steering Committee’, (4 April 
2022): 
https://www.gov.uk/government/publications/centre-for-finance-innovation-and-technology-
steering-committee
 [accessed 7 June 2022]
281 See, for example, written evidence from London Market Group (
RFS0009
).
282 Written evidence from Innovate Finance (
RFS0008
)
283 
Q 38
; see also 
Q 5 
(Rachel Kent).
284 
Q 113
285 
Q 112

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THE UK-EU RELATIONSHIP IN FINANCIAL SERVICES
‘greenwashing’—the presentation of investment as ‘green’ when it is not).The 
EU is already in the process of finalising its own taxonomy, as are several 
other jurisdictions.
224. Nathanaël Benjamin of the PRA told the inquiry how the Bank of England 
had “for some time now, has been aiming to play a key role on the climate 
regulatory front”:
“First, in 2019, we set out our supervisory expectations of how firms 
should be governing, managing and having accountability for their 
climate risk exposures. These expectations are now in force. Secondly, 
we are currently running a major concurrent climate exploratory 
scenario analysis of all major UK banks and insurers … Thirdly, we are