Conclusion 12

The Treasury’s Green Book guidance requires all policy, programme and project proposals to consider environment and climate impacts, including UK greenhouse gas emissions. The Department noted that this was another means by which the compatibility of departments’ decisions with net zero could be taken into account.20 HM Treasury has recently reviewed the Green Book guidance, due to concerns that the guidance may undermine the Government’s aim to “level up” poorer parts of the UK. The updated Green Book emphasises the importance of demonstrating the fit of a proposed intervention with government’s strategic objectives, such as net zero, and highlighting whether it supports or conflicts with them.21 The Treasury told us that departments, in line with Green Book guidance, should be considering the impact of policies on wider strategic objectives, such as net zero, even if policies were not directly related to climate change.22 16 Qq 5-6, 36 17 Qq 23, 29 18 C&AG’s Report, para 3, 2.11 19 Q 31-33, 36; C&AG’s Report para 10, 2.11 20 Q 32; C&AG’s Report para 2.12 21 HM Treasury, Green Book Review 2020: Findings and response, Box 2.A, para 1.3, 3.5 22 Qq 54, 64 12 Achieving Net Zero