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Select Committee · Environmental Audit Committee

The financial sector and the UK’s net zero transition

Status: Closed Opened: 30 May 2022 Closed: 23 May 2024 22 recommendations 10 conclusions 1 report

The EAC is examining the role of financial institutions, including UK signatories to the Glasgow Financial Alliance for Net Zero, in winding down the financing of fossil fuel extraction and promoting the transition to green energy in pursuit of the Government’s climate and environment targets. Read the call for evidence for more detail about the …

Clear

Reports

1 report
Title HC No. Published Items Response
First Report - The financial sector and the UK's net zero t… HC 277 29 Nov 2023 32 Responded

Recommendations & Conclusions

3 items
1 Conclusion First Report - The financial sector and… Not Addressed

Vast numbers of fossil fuel assets risk becoming stranded due to energy transition

We have heard that vast numbers of fossil fuel assets are at risk of devaluing before they are extracted due to changes in energy consumption and therefore becoming ‘stranded assets’. This is a particular risk in the City of London, as one of the top four financial centres where this …

Government response. The government reiterates its stance on the importance of domestic oil and gas for energy security and describes OPRED's existing role in regulating decommissioning liabilities, without directly addressing the committee's conclusion on the specific risks of stranded assets in the …
14 Recommendation First Report - The financial sector and… Not Addressed

Publish further guidance for stakeholders on integrating just transition principles into the transition plan framework.

We recommend that the Government publish further guidance to stakeholders to advise explicitly how just transition principles should be considered within the transition plan framework, to ensure that companies are able to provide better outcomes for all people, including workers and their communities.

Government response. The government notes the Transition Plan Taskforce (TPT) has a Just Transition Working Group to advise on integrating these principles into TPT outputs but does not commit to publishing its own further guidance for stakeholders as recommended.
15 Recommendation First Report - The financial sector and… Not Addressed

Incorporate company contributions towards halting nature loss within the transition plan framework's strategic ambition.

We welcome the references to nature in the Transition Plan Taskforce’s framework; however, we consider that the framework could go further on nature. We recommend that the Government should take steps to incorporate into the framework the contribution by a company towards halting and reversing nature loss within the overall …

Government response. The government states the Transition Plan Taskforce (TPT) has launched a Nature Working Group to advise on appropriate integration of nature-related topics into TPT outputs, but does not commit to taking specific steps to incorporate nature loss into the transition …

Oral evidence sessions

4 sessions
Date Witnesses
18 May 2023 Amy Jenkins · Department for Energy Security and Net Zero, Fayyaz Muneer · HM Treasury, The Baroness Penn · HM Treasury, The Lord Callanan · Department for Energy Security and Net Zero, Zoe Norgate · Department for Energy Security and Net Zero View ↗
8 Mar 2023 Michael Marks · Legal and General Investment Management, Roslyn Stein · AXA, Steve Waygood · Aviva Investors, Tim Lord · HSBC UK View ↗
14 Dec 2022 Dr Anastasiya Ostrovnaya · Imperial College Business School, Mark Campanale · Carbon Tracker Initiative, Ryan Jude · Green Finance Institute, Sam Alvis · Green Alliance View ↗
24 Oct 2022 Mark Carney · United Nations View ↗

Correspondence

8 letters
DateDirectionTitle
23 May 2024 To cttee Letter from the Parliamentary Under Secretary of State for Energy Efficiency an…
23 Feb 2024 To cttee Letter from the EAC Chair to the Treasury Lords Minister and the Minister for E…
20 Jun 2023 To cttee Letter from the Minister of State for Energy Security and Net Zero providing an…
19 Jun 2023 To cttee Letter from the Minister for Energy Efficiency and Green Finance (Department fo…
30 Mar 2023 To cttee Letter from the Co-Chair of the Glasgow Financial Alliance for Net Zero, respon…
30 Mar 2023 To cttee Letter from the EAC Chair to the Co-Chair of the Glasgow Financial Alliance for…
10 Nov 2022 — Additional responses received to letters sent to signatories of the Glasgow Fin…
18 Oct 2022 — Responses received to letters sent to signatories of the Glasgow Financial Alli…