Select Committee · Treasury Committee

Decarbonisation and Green Finance

Status: Closed Opened: 3 Mar 2020 Closed: 20 Jan 2022 21 recommendations 3 conclusions 1 report

The Treasury Committee has re-launched an inquiry into the decarbonisation of the UK economy and green finance. This inquiry will scrutinise the role of HM Treasury, regulators and financial services firms in supporting the Government’s climate change commitments. It will also examine the economic potential of decarbonisation for the UK economy in terms of job … Show more

Clear

Reports

1 report
Title HC No. Published Items Response
Thirteenth Report - Net zero and the Future of Green Finance HC 147 22 Apr 2021 24 Responded

Recommendations & Conclusions

3 items
2 Recommendation Thirteenth Report - Net zero and the Fu… Acknowledged

The Government has made bold claims that the economic recovery will be a green recovery.

The Government has made bold claims that the economic recovery will be a green recovery. In order to achieve that, the Government needs to set out in its Net Zero Strategy who, at ministerial level, will be responsible for delivering net zero, coordinating the roles of different departments, and ensuring … Read more

Government response AI summary
The government states the Net Zero Strategy will set out its vision for transitioning to a net zero economy, and lead delivery departments are responsible for sectoral strategies, but it does not specify who at ministerial level will be responsible or how coordination will be …
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HM Treasury
9 Conclusion Thirteenth Report - Net zero and the Fu… Acknowledged

We note the new remit provided to the Monetary Policy Committee, which will allow it...

We note the new remit provided to the Monetary Policy Committee, which will allow it to rebalance its Corporate Bond Purchase Scheme to take account of the climate impact of the bonds it holds. We will continue to scrutinise this process and will examine how any changes are enacted, and … Read more

Government response AI summary
The government clarified that the MPC's primary objective is price stability, and its secondary objective, updated to include environmental sustainability, leaves it to the Bank of England to determine how to support these goals.
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HM Treasury
11 Recommendation Thirteenth Report - Net zero and the Fu… Acknowledged

The Treasury should, as part of its review of Solvency II, consider reforms that could...

The Treasury should, as part of its review of Solvency II, consider reforms that could improve the funding of sustainable green infrastructure while maintaining the financial stability of insurers.

Government response AI summary
The government agrees with the recommendation and states it wants a more proportionate and flexible regulatory regime. It notes that it has published a response to its Call for Evidence on Solvency II setting out next steps for the insurance sector.
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HM Treasury

Correspondence

10 letters
DateDirectionTitle
7 Jan 2021 To cttee Letter from Economic Secretary relating to Decarbonisation and Green Finance, d…
15 Dec 2020 To cttee Letter from the Exchequer Secretary relating to the Committee session on 16 Nov…
10 Dec 2020 To cttee Letter from Director General Association of British Insurers relating to Decarb…
26 Nov 2020 To cttee Letter from the Co-Chair of the Association of Member Nominated Trustees relati…
4 Nov 2020 To cttee Letter from Sarah Breeden, Executive Director, Prudential Regulation Authority,…
1 Oct 2020 To cttee Letter from Chris Cummings, Chief Executive, the Investment Association, relati…
11 Mar 2020 To cttee Letter from Chair to Governor regarding Climate Risk 20200203
11 Mar 2020 To cttee Letter from Chair to FCA CEO Andrew Bailey regarding Climate Risk 20200203
11 Mar 2020 Governor to Chair letter regarding Climate Risk
10 Mar 2020 From cttee AJB CEO of FCA letter to Chair regarding Climate Risk