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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 … Show more

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
4 Conclusion First Report - The financial sector and… Rejected

Ensure government clarifies energy transition market signals to boost investment.

We absolutely agree with the Minister for Energy Efficiency and Green Finance that energy security and net zero are two sides of the same coin. However, we are concerned that many believe that the Government is sending mixed signals to the market which in turn affects investment decisions in the … Read more

Government response AI summary
The government rejects the premise of sending mixed signals, strongly affirming its commitment to achieving net zero and energy security by replacing fossil fuels with renewables and nuclear. It details significant public and private investments, funding programmes, and action plans already in place to accelerate …
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5 Conclusion First Report - The financial sector and… Rejected

No consensus on fossil fuel transition speed risks climate goals and stranded assets.

We have previously concluded in our report ‘Accelerating the transition from fossil fuels and securing energy supplies’ that there is not a consensus on the speed of transition from fossil fuels as the Government endeavours to reach net zero by 2050. While the scientific consensus is clear that planned production … Read more

Government response AI summary
The government rejects the committee's concern regarding the balance of North Sea assets and renewables, asserting that the domestic oil and gas industry remains vital for energy security. It states that new licensing, supported by existing and new legislation, ensures a managed decline of oil …
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7 Recommendation First Report - The financial sector and… Rejected

Set a clear date for ending new North Sea oil and gas licensing rounds.

We reiterate the recommendation of our earlier report that the Government set a clear date for ending new oil and gas licensing rounds in the North Sea: this date should fall well before 2050. (Paragraph 57) Plans for transition: reporting requirements Read more

Government response AI summary
The government rejects setting an end date for new oil and gas licensing rounds, arguing that the domestic industry is vital for energy security and the Offshore Petroleum Licensing Bill will ensure regular annual licensing.
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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 ↗

Who gave evidence

14 witnesses
WitnessOrganisationSessions
Amy Jenkins · Deputy Director, UK Net Zero Investment and Workf… Department for Energy Security and Net Zero 1
Dr Anastasiya Ostrovnaya · Senior Research/Teaching Fellow, Centre for Clima… Imperial College Business School 1
Fayyaz Muneer · Deputy Director, Green Finance and Prudential Pol… HM Treasury 1
Mark Campanale · Founder and Director Carbon Tracker Initiative 1
Mark Carney · Special Envoy for Climate Action and Finance United Nations 1
Michael Marks · Head of Investment Stewardship and Responsible In… Legal and General Investment Management 1
Roslyn Stein · Group Head of Climate and Biodiversity AXA 1
Ryan Jude · Programme Director for Green Taxonomy Green Finance Institute 1
Sam Alvis · Head of economy Green Alliance 1
Steve Waygood · Chief Responsible Investment Officer Aviva Investors 1
The Baroness Penn · Treasury Lords Minister HM Treasury 1
The Lord Callanan · Parliamentary Under-Secretary of State (Minister … Department for Energy Security and Net Zero 1
Tim Lord · UK Head of Climate Change HSBC UK 1
Zoe Norgate · Deputy Director, International Net Zero: Green Fi… Department for Energy Security and Net Zero 1

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…