Regulation Plan for ESG Ratings Providers
In the 2024 Spring Budget, the UK government states that it will supervise ESG ratings providers and entrust this work to the Financial Conduct Authority (FCA). This may mean that UK ESG ratings regulations will be announced this year.
The UK FCA has previously established the ESG Advisory Committee to incorporate ESG into the regulatory process, aiming to improve the transparency of ESG information disclosure and help investors obtain green products and services.
Related Post: FCA Announced Establishment of ESG Advisory Committee
UK Green Industry Development Measures
The regulation plan for ESG rating providers is part of the green industry development measures in the Spring Budget. In addition, green industry development measures include:
Increase fund for the Green Industries Growth Accelerator (GIGA): The UK plans to increase funding for GIGA by £120 million to support the development of low-carbon manufacturing and accelerate net zero. £390 million of GIGA will be invested in the offshore wind power supply chain, and another £390 million will be invested in Carbon Capture Utilization and Storage and hydrogen energy supply chain.
Announce the final parameters of the Contracts for Difference Allocation Round (AR) for renewable energy: The UK has announced the specific parameter information of AR6 and set the largest budget in history, with an amount of more than £100 million. Contracts for Difference means that the government purchases electricity from power generation companies and subsidizes them based on the difference of actual price and the contract price.
Deploy nuclear energy and Small Modular Reactor (SMR): The government has announced a £160 million nuclear energy construction project and invited bids for the SMR construction.
Reference:
UK Spring Budget 2024
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