Source · Select Committees · Treasury Committee
Thirteenth Report - Net zero and the Future of Green Finance
Treasury Committee
HC 147
Published 22 April 2021
Government response
Net Zero and the Future of Green Finance: Responses to the Committee’s Thirteenth Report of Session 2019-21 · published 16 Jul 2021
Recommendations & Conclusions
2
Recommendation
Acknowledged
Para 30
The Government has made bold claims that the economic recovery will be a green recovery.
Recommendation
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 …
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Government Response 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 ensured.
HM Treasury
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9
Conclusion
Acknowledged
Para 74
We note the new remit provided to the Monetary Policy Committee, which will allow it...
Conclusion
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 …
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Government Response 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.
HM Treasury
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11
Recommendation
Acknowledged
Para 84
The Treasury should, as part of its review of Solvency II, consider reforms that could...
Recommendation
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 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.
HM Treasury
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