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Select committee: Environmental Audit Committee

Recommendation 15

First Report - The financial sector and the UK's net zero transition Published 29 Nov 2023 Paragraph 92

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 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 strategic ambition of its transition plan.

From: Environmental Audit Committee, First Report - The financial sector and the UK's net zero transition (HC 277), paragraph 92, 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".

Read the government's response ↗ Report an error