The financial sector and the UK’s net zero transition

Environmental Audit Committee Closed Inquiry
Opened: 30 May 2022 Closed: 23 May 2024 Parliament page
The EAC is examining the role of financial institutions, including UK signatories to the Glasgow Financial Alliance for Net Zero, in winding down the financing of fossil fuel extraction and promoting the transition to green energy in pursuit of the Government’s climate and environment targets. Read the call for evidence … Read more
22 Recommendations
10 Conclusions
1 Report
4 Oral sessions
8 Letters
4 Events
Activity timeline 18 events
23 May
2024
Correspondence
23 Feb
2024
Report published
23 Feb
2024
Correspondence
29 Nov
2023
Report published
20 Jun
2023
Correspondence
19 Jun
2023
Correspondence
18 May
2023
Oral evidence
18 May
2023
Formal meeting (oral evidence session) · Room 16, Palace of Westminster
30 Mar
2023
Correspondence
30 Mar
2023
Correspondence
8 Mar
2023
Oral evidence
8 Mar
2023
Formal meeting (oral evidence session) · Room 15, Palace of Westminster
Oral evidence sessions 4 sessions
18 May 2023
View on parliament.uk
panel one
Amy Jenkins · Department for Energy Security and Net Zero Fayyaz Muneer · HM Treasury The Baroness Penn · HM Treasury The Lord Callanan · Department for Energy Security and Net Zero Zoe Norgate · Department for Energy Security and Net Zero
8 Mar 2023
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panel one
Michael Marks · Legal and General Investment Management Roslyn Stein · AXA Steve Waygood · Aviva Investors Tim Lord · HSBC UK
14 Dec 2022
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panel one
Dr Anastasiya Ostrovnaya · Imperial College Business School Mark Campanale · Carbon Tracker Initiative Ryan Jude · Green Finance Institute Sam Alvis · Green Alliance
24 Oct 2022
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Panel 1
Mark Carney · United Nations
Title HC No. Published Items Response
First Report - The financial sector and the UK's net zero transi… HC 277 29 Nov 2023 32 Responded
Recommendations & Conclusions
4 results
Clear
2 Recommendation Acknowledged
First Report - The financial secto…
Require the North Sea Transition Authority to calculate decommissioning cost impacts for new licences.
We recommend that to mitigate against the risk of stranded assets from North Sea extraction, the North Sea Transition Authority should calculate what the impact to the UK taxpayer and company profitability would be of requiring the cost of decommissioning … Read more
Government Response
The government highlights the importance of domestic oil and gas and existing decommissioning regulations, stating that OPRED reviews the risk of stranded assets. OPRED offers to engage further with the Committee to understand their policy suggestion regarding calculating the impact of new duties on operators for decommissioning costs, without committing to the calculation itself.
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13 Conclusion Acknowledged
First Report - The financial secto…
Just transition principles not explicitly included within the transition plan framework.
We welcome the Government’s commitment to just transition principles in its Green Finance Strategy and the inclusion of specific workstreams in the creation of the transition plan disclosure framework and implementation guidance. While the Transition Plan Taskforce acknowledges the inclusion … Read more
Government Response
The government acknowledges the concern, stating the Transition Plan Taskforce (TPT) has launched working groups, including one on just transition, to advise on appropriate integration of these topics into its outputs.
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16 Conclusion Acknowledged
First Report - The financial secto…
Government intentions for Sustainability Disclosure Requirements and mandatory international standards are welcomed.
We welcome the Government’s intentions for Sustainability Disclosure Requirements (SDR). As part of that framework, we welcome the Government’s intention to incorporate International Sustainability Standards Board (ISSB) standards and make them mandatory, its consultation on reporting scope 3 greenhouse gas … Read more
Government Response
The government reaffirms its commitment to implementing Sustainability Disclosure Requirements (SDR) and highlights its support for the Taskforce on Nature-related Financial Disclosures (TNFD), stating it will consider how best to incorporate TNFD recommendations into UK policy.
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18 Conclusion Acknowledged
First Report - The financial secto…
Delays to the introduction of the UK green taxonomy are concerning.
While we welcome the Government’s intention to introduce a UK green taxonomy, we are concerned to note the delays to its introduction. As with transition plan frameworks and disclosures, we support the principle of a mandatory taxonomy to ensure comparability. … Read more
Government Response
The government acknowledges the committee's concerns about delays and confirms it is working at pace to publish a consultation on the Green Taxonomy shortly. It plans a testing period of voluntary disclosures for at least two reporting years before considering mandatory obligations, citing complexity and a need for usability.
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Government Response AI assessment · 32 of 22 classified
Accepted 11
Accepted in Part 1
Acknowledged 4
Deferred 10
Not Addressed 3
Rejected 3
Total 22 recs + 10 conclusions
Correspondence 8 letters
23 May 2024 To committee Letter from the Parliamentary Under Secretary of State for Energy Efficiency and Green Finance, and from the HM Treasury Minister for Green Finance, responding to the 23 February 2024 letter of the Committee regarding The financial sector and the UK’s net zero transition, dated 16 May 2024
Parliament page
23 Feb 2024 To committee Letter from the EAC Chair to the Treasury Lords Minister and the Minister for Energy Efficiency and Green Finance, concerning the Government's response to the EAC's report on The financial sector and the UK’s net zero transition, dated 23 February 2024
Parliament page
20 Jun 2023 To committee Letter from the Minister of State for Energy Security and Net Zero providing an update on the Celtic Sea leasing round, dated 15 June 2023
Parliament page
19 Jun 2023 To committee Letter from the Minister for Energy Efficiency and Green Finance (Department for Energy Security and Net Zero), relating to the 18 May 2023 evidence session on 'The financial sector and the UK’s net zero transition', dated 2 June 2023
Parliament page
30 Mar 2023 To committee Letter from the EAC Chair to the Co-Chair of the Glasgow Financial Alliance for Net Zero, regarding the 24th October 2022 'The financial sector and the UK’s net zero transition' hearing, dated 25 January 2023
Parliament page
30 Mar 2023 To committee Letter from the Co-Chair of the Glasgow Financial Alliance for Net Zero, responding to the Committee's letter of 25 January 2023, dated 23 March 2023
Parliament page
10 Nov 2022 Additional responses received to letters sent to signatories of the Glasgow Financial Alliance for Net Zero
Parliament page
18 Oct 2022 Responses received to letters sent to signatories of the Glasgow Financial Alliance for Net Zero
Parliament page