Source · Select Committees · Public Accounts Committee
Recommendation 18
18
Treasury told us that the extent to which departments appraise the environmental impact of what...
Conclusion
Treasury told us that the extent to which departments appraise the environmental impact of what they are doing is variable, a good example being the Department for Transport which has worked closely with Defra and the Treasury on its programme to improve air quality in local authorities, and another being the Ministry of Defence which has requested support from Treasury to improve its assessments and appraisals in the way it does its spending submissions.48 However, Treasury acknowledged that departments had generally struggled to articulate their contribution to climate change, let alone the environment, in part due to a lack of science capability (following reductions in funding between 2010 and 2015).49
Government Response
Not Addressed
HM Government
Not Addressed
The government agrees with the Committee’s recommendation. Target implementation date: April 2022 5.2 HM Treasury recognises its important role in supporting the delivery of the government’s climate and environmental objectives. Both the Stern and the Dasgupta Reviews, on the economics of climate change and biodiversity respectively, were commissioned by the Treasury. Its Net Zero Review will also be published later in 2021. 5.3 At spending reviews, departments are required to assess the costs and benefits of their proposals – including climate and environmental impacts – following the framework set out in the Green Book. Treasury spending teams consider these impacts when assessing the strategic importance and value for money of any proposal. 5.4 HM Treasury continuously improves the Green Book in line with the latest scientific evidence. In 2018, the Green Book and its supplementary guidance were revised with support from the Natural Capital Committee to require more comprehensive appraisal of environmental impacts following a natural capital approach. Resources such as Defra’s Enabling a Natural Capital Approach (ENCA) make data, guidance and tools available to support policymakers. The Treasury is also currently conducting an expert-led review of the environmental discount rate. 5.5 Spending Review 2020 guidance required departments to include the greenhouse gas emissions of bids, and their impact on meeting Carbon Budgets and Net Zero. Guidance also sought qualitative commentary on the impact of delivery of the 25 Year Environment Plan. HM Treasury is currently reviewing the learning from this exercise and considering what additional information should be published following the next spending review to support public understanding of the role the Treasury plays in meeting government’s environmental objectives.