The government had intended to consult on whether the SDR and labelling regime should be extended to include funds recognised under the OFR in Q3 2024, but the consultation has not yet been published.
Such delay and uncertainty is not helpful and may impact further on the UK’s attractiveness as a centre for sustainable finance.
Are the various delays and slow take-up of labels simply teething problems of our new SDR regime, or is the regime so rigid and sets such a high bar that firms are having real difficulty adopting a label or complying overall?
The lack of a UK green taxonomy certainly hasn’t helped, nor has the lack of an internationally aligned approach.
For now, the jury is out – we have the will but query whether we have found the way. Only time will tell.
Grania Baird and Jessica Reed are partners at Farrer & Co
