The delay comes as the election approaches, with the Conservatives looking to make political gains but lacking the necessary rules and regulations, which could put the City at a disadvantage in the global shift towards sustainability.

Previous plans to phase out diesel cars and gas boilers have also been frozen.

Chris Hayward, policy chairman at the City of London Corporation, urged pressure on the Conservative Party to prioritize green policies despite abandoning some pledges due to financial constraints and the need to distinguish themselves from the Labour Party's green-minded agenda in the election year.

Rishi Sunak, the former chancellor, had previously advocated for the U.K. to become the first "net zero aligned financial center." The Prime Minister, who was previously in favor of sustainable rules and regulations, has made a U-turn and his party now supports this shift.

This means the government is avoiding implementing any rules that could burden businesses, including those in the City.

Green investors are concerned that previous commitments have not been followed through.

It's not just a matter of delay, but a significant change in policy direction.