Source · Select Committees · Treasury Committee
Recommendation 1
1
Paragraph: 23
Although the Government has emphasised the need for a “green” recovery, we note it has...
Recommendation
Although the Government has emphasised the need for a “green” recovery, we note it has not, except in limited circumstances, imposed green conditionality on the support it has provided during the coronavirus pandemic. Whilst it is clear that support schemes were required to be provided without delay the Treasury should set out why it did not include green conditionality for the Recovery Loan Scheme announced in the 2021 Budget.
Paragraph Reference:
23
Government Response
Acknowledged
HM Government
Acknowledged
The Government has always remained open to the introduction of new debt financing instruments, including green bonds. However, before doing so the Government would need to be satisfied that any new instrument would meet value-for-money criteria for the taxpayer, enjoy strong and sustained demand in the long term, and be consistent with debt management and wider fiscal objectives. After carefully monitoring how the sovereign green bond market has developed over recent years and conducting a detailed assessment against these criteria, the Treasury and UK Debt Management Office (DMO) believe that now is the right time to issue this type of instrument. At Budget the Chancellor announced the UK’s commitment to issue at least £15bn of green gilts in FY 2021/22, as the UK looks to build out a green yield curve, and to report on the social co-benefits of green spend.