Select committee: Environmental Audit Committee
Recommendation 11
First Report - The financial sector and the UK's net zero transition
Published 29 Nov 2023
Paragraph 88
Environmental Audit Committee The financial sector and the UK’s net zero transition All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Recommendation (the committee's words)
We welcome the publication of the Transition Plan Taskforce’s disclosure framework for transition plans, and the steps taken to achieve international alignment of that framework. We believe that those who publish transition plans should follow a compulsory framework, to ensure comparability and to mitigate the risk of greenwashing. While investors have an important role to play in determining the credibility of transition plans, it is vital for measuring our progress towards net zero that ‘credibility’ is not subjective. We recommend that the Government should 60 The financial sector and the UK’s net ero transition introduce regulations, to be phased in and monitored over time, to ensure that companies developing and disclosing transition plans do so in accordance with the Transition Plan Taskforce’s guidance.
From: Environmental Audit Committee, First Report - The financial sector and the UK's net zero transition (HC 277), paragraph 88, 29 November 2023
Government response
The government responded to the whole report on 23 February 2024 (deadline 29 January 2024).
Summary written by Accountability Index from the government's response. It is not the government's own words.The government sets out its position on the financial sector and net zero, defending continued North Sea licensing, setting out plans for consultations on transition plans and voluntary carbon markets, and confirming a UK carbon border adjustment mechanism by 2027.
- On a date to end new North Sea licensing, it states it has "already considered fixing an end date" and "decided not to pursue this approach", citing a 2021 review and a climate compatibility checkpoint.
- On transition plans, it says its "upcoming consultation will consider the UK's approach to transition plans", including the role of the Transition Plan Taskforce's Disclosure Framework.
- On the green taxonomy, it will introduce a voluntary testing period "for at least two reporting years before considering the introduction of mandatory obligations".
- On voluntary carbon markets, it will consult on next steps and "intend[s] to publish the consultation in early 2024".