Source · Select Committees · Foreign Affairs Committee
Recommendation 10
10
Paragraph: 29
It is essential that domestic policy decisions support rather than undermine diplomatic efforts.
Recommendation
It is essential that domestic policy decisions support rather than undermine diplomatic efforts. We recommend that the UK leads by example and sets ambitious domestic climate policies. We welcome the introduction of the Net Zero Innovation Portfolio and recommend that the Government continue to explore and promote opportunities presented by new green technologies. HM Treasury is a key partner to the FCDO. Financial instruments that ensure enduring responsibility for environmental impact will be essential to demonstrate the UK’s enduring commitment to a green agenda and key to ensuring that the City’s leadership is used to embed change.
Paragraph Reference:
29
Government Response
Acknowledged
HM Government
Acknowledged
10.1 Through the Prime Minister’s Ten Point Plan and our Energy White Paper, we have set out concrete steps we will take to build back greener from the pandemic and reach net zero emissions by 2050. We laid legislation in April for the UK’s sixth carbon budget, proposing a world-leading target which would reduce greenhouse gas emissions by 78% by 2035 compared to 1990 levels. This latest bold step demonstrates our continued leading role in tackling climate change, with a domestic target consistent with the Paris Agreement temperature goal. Ahead of COP26, we will bring forward further bold proposals, including a Net Zero Strategy, to cut emissions and create new jobs and industries across the whole country—going further and faster towards building a stronger, more resilient future and protecting our planet for this generation and those to come. 10.2 Delivering our net zero objective will require deep decarbonisation of all sectors. The Net Zero Innovation Programme (NZIP) will spend £1bn over the next 4 years to accelerate the commercialisation of innovative low-carbon technologies, systems and business models in power, buildings and industry. It will decrease the costs of decarbonisation and set the UK on path to Net Zero, create world-leading industries and new jobs, invest in our regions and help make the UK a science and innovation superpower. The portfolio focuses on ten priority areas that correspond with the Government’s Ten Point Plan for a Green Industrial Revolution, including: Floating offshore wind; Nuclear advanced modular reactors; Energy storage & flexibility; Bioenergy; Hydrogen; Homes; Direct air capture and Advanced CCUS; Industrial fuel switching; and disruptive technologies such as Artificial Intelligence for energy. 10.3 We also know that financial services will be a critical enabler in mobilizing green investment at the pace and scale required—and that is why green finance is a key priority for this Government. In November 2020, the Chancellor announced a UK green taxonomy. This will provide firms and investors a common definition for environmentally sustainable economic activities. It takes the EU taxonomy as a starting point and HMG is considering amendments where appropriate to ensure it is suitable for the UK market, and consistent with UK climate goals. In November the Chancellor announced that the UK will become the first country in the world to make Task Force on Climate-related Financial 12 First Special Report of Session 2021–22 Disclosures (TCFD) aligned disclosures fully mandatory across the economy by 2025, going beyond the ‘comply or explain’ approach. The joint Government-Regulator TCFD Taskforce concurrently published its interim report with a roadmap for implementation.