The Financial Conduct Authority (FCA) closed its investigation into Drax regarding the company’s disclosures about the sourcing of wood pellets for biomass. The investigation, which reviewed thousands of pages of material and examined Drax’s 2021, 2022, and 2023 Annual Reports for compliance with UK Listing Rules and Disclosure Guidance and Transparency Rules under the Market Abuse Regulation, concluded without further action because the FCA did not find evidence justifying additional measures. According to one report, the investigation was launched in response to whistleblower claims that Drax had misled the market over the sustainability of wood pellets sourced from Canada. Drax has faced accusations of sourcing wood pellets from environmentally important forests; Drax says it is confident in its sourcing.

Separately, Ofgem found no evidence of deliberate misreporting by Drax but concluded that Drax had failed to comply with its obligations under the Renewables Obligations scheme.

In a separate matter, the European Court of Justice dismissed the UK government’s legal challenge against the EU’s proposed financial transaction tax (FTT). London Mayor Boris Johnson criticized the EU’s financial transaction tax as harmful to growth and the financial sector, warning that the court’s ruling raised serious questions about how the UK government proposed to protect the City’s financial sector from EU legislation.