Source · Select Committees · Work and Pensions Committee
Recommendation 16
16
Paragraph: 58
Pension schemes make long-term investment decisions for their members.
Recommendation
Pension schemes make long-term investment decisions for their members. A clear UK—and, where possible, international—climate change strategy will provide greater certainty for pension schemes to make long-term investments. We recommend that the Government set out a UK climate roadmap—including sector specific pathways for meeting the Paris Agreement goals—to provide greater certainty for pension schemes and other investors, particularly for those investing in in long- term investments such as infrastructure.
Paragraph Reference:
58
Government Response
Not Addressed
HM Government
Not Addressed
The Government’s Net Zero Strategy,35 which was published on 19 October, provides a cross-economy climate roadmap on the UK’s transition to net zero by 2050, including the action government will take to keep the UK on track for meeting its carbon budgets and 2030 Nationally Determined Contributions (NDC).36 The Net Zero Strategy outlines measures to transition to a green and sustainable future, helping businesses and consumers to move to clean power, supporting hundreds of thousands of jobs and leveraging up to £90 billion of private investment by 2030. It sets a clear direction and gives the wider financial industry the certainty they need to invest, grow, and make the UK home to new ambitious projects. The Net Zero Strategy also shows indicative pathways to meeting carbon budgets in terms of how it sees different sectors contributing to emission reductions to meet legislated budget levels up to 2037. The sector chapters in the Net Zero Strategy set out in detail the policies to deliver these pathways. For example, in relation to the Power sector, the Government will accelerate deployment of low-cost renewable generation and will consider whether broader reform to market frameworks are needed to unlock the full potential of low carbon technologies to achieve net zero.37