Source · Select Committees · Environmental Audit Committee
First Report - The financial sector and the UK's net zero transition
Environmental Audit Committee
HC 277
Published 29 November 2023
Recommendations
14
Not Addressed
Para 91
Publish further guidance for stakeholders on integrating just transition principles into the transition plan framework.
Recommendation
We recommend that the Government publish further guidance to stakeholders to advise explicitly how just transition principles should be considered within the transition plan framework, to ensure that companies are able to provide better outcomes for all people, including workers …
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Government Response Summary
The government notes the Transition Plan Taskforce (TPT) has a Just Transition Working Group to advise on integrating these principles into TPT outputs but does not commit to publishing its own further guidance for stakeholders as recommended.
15
Not Addressed
Para 92
Incorporate company contributions towards halting nature loss within the transition plan framework's strategic ambition.
Recommendation
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 …
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Government Response Summary
The government states the Transition Plan Taskforce (TPT) has launched a Nature Working Group to advise on appropriate integration of nature-related topics into TPT outputs, but does not commit to taking specific steps to incorporate nature loss into the transition plan framework.
Conclusions (1)
1
Conclusion
Not Addressed
Para 33
We have heard that vast numbers of fossil fuel assets are at risk of devaluing before they are extracted due to changes in energy consumption and therefore becoming ‘stranded assets’. This is a particular risk in the City of London, as one of the top four financial centres where this …
Government Response Summary
The government reiterates its stance on the importance of domestic oil and gas for energy security and describes OPRED's existing role in regulating decommissioning liabilities, without directly addressing the committee's conclusion on the specific risks of stranded assets in the City of London or the lack of consensus on who bears the cost.