Source · Select Committees · Environmental Audit Committee
Recommendation 27
27
Deferred
Paragraph: 92
UK financial sector contributes to deforestation, impeding net zero commitments.
Conclusion
The UK financial sector is a direct and indirect contributor to financing deforestation. Financial institutions cannot meet their deforestation policies or their net zero commitments without also addressing their exposure to deforestation through the companies they finance.
Government Response Summary
The government states that guidance on applying the Schedule 17 regime to the financial sector will be published with secondary legislation, and HM Treasury will conduct a review to assess the adequacy of current regulations in eliminating illegal deforestation financing.
Paragraph Reference:
92
Government Response
Deferred
HM Government
Deferred
Guidance on the application of the Schedule 17 regime to businesses in the UK financial sector will be published when secondary legislation is laid in Parliament. Furthermore, as set out in the Financial Services and Markets Act 2023, HM Treasury will conduct a review to assess the extent to which regulation of the UK financial system is adequate for the purpose of eliminating the financing of illegal deforestation, and to consider what, if any, changes to the regulatory framework may be appropriate.