Source · Select Committees · Environmental Audit Committee
Recommendation 24
24
Accepted
Paragraph: 130
Government exploring methodologies for tracking net zero and nature financial flows
Conclusion
Understanding levels of investment across the economy is vital for knowing whether the UK is on track to meet its climate and nature targets. That is why we welcome the work underway by the Government to explore methodologies for tracking both net zero-related financial flows and nature-related financial flows.
Government Response Summary
The government recognises the importance of tracking investment flows and details ongoing efforts, including the concluded scoping phase of the UK Landscape of Climate Finance (LCF) research and research into tracking private finance for nature's recovery. It states it will begin gathering data this year against targets for nature finance.
Paragraph Reference:
130
Government Response
Accepted
HM Government
Accepted
We recognise that tracking investment flows will help industry and the UK Government to monitor progress against our targets and provide timely assessment on the impact of UK Government interventions and industry response. In response to calls from the Climate Change Committee and National Audit Office, the UK Government committed to ‘work with external partners and data providers to better track private investment into the net zero economy going forward’. We are also committed to monitoring annual private finance flows into nature’s recovery in England against our target. We commissioned two pieces of external research to scope existing investment tracking methodologies and evaluate available data sources: The scoping phase of UK Landscape of Climate Finance (LCF) research to develop a pilot LCF model to track investment into net zero sectors has now concluded, and we are considering next steps, including the potential role of an independent body. Stakeholder engagement with data holders, financial sector participants and existing LCF developers has informed this scoping and methodology phase. Research has also concluded into options to track private finance into nature’s recovery in England. Further to this, we will begin gathering data this year against our target for this finance to reach at least £500m every year by 2027, and over £1bn by 2030.