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
18 May
2023
Oral evidence
18 May
2023
Formal meeting (oral evidence session) · Room 16, Palace of Westminster
8 Mar
2023
Oral evidence
8 Mar
2023
Formal meeting (oral evidence session) · Room 15, Palace of Westminster
Oral evidence sessions 4 sessions
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
panel one
Michael Marks · Legal and General Investment Management Roslyn Stein · AXA Steve Waygood · Aviva Investors Tim Lord · HSBC UK
panel one
Dr Anastasiya Ostrovnaya · Imperial College Business School Mark Campanale · Carbon Tracker Initiative Ryan Jude · Green Finance Institute Sam Alvis · Green Alliance
Panel 1
Mark Carney · United Nations
Recommendations & Conclusions
3 results
4 Conclusion Rejected
First Report - The financial secto…
Ensure government clarifies energy transition market signals to boost investment.
We absolutely agree with the Minister for Energy Efficiency and Green Finance that energy security and net zero are two sides of the same coin. However, we are concerned that many believe that the Government is sending mixed signals to … Read more
Government Response
The government rejects the premise of sending mixed signals, strongly affirming its commitment to achieving net zero and energy security by replacing fossil fuels with renewables and nuclear. It details significant public and private investments, funding programmes, and action plans already in place to accelerate the clean energy transition and support green industries.
5 Conclusion Rejected
First Report - The financial secto…
No consensus on fossil fuel transition speed risks climate goals and stranded assets.
We have previously concluded in our report ‘Accelerating the transition from fossil fuels and securing energy supplies’ that there is not a consensus on the speed of transition from fossil fuels as the Government endeavours to reach net zero by … Read more
Government Response
The government rejects the committee's concern regarding the balance of North Sea assets and renewables, asserting that the domestic oil and gas industry remains vital for energy security. It states that new licensing, supported by existing and new legislation, ensures a managed decline of oil and gas production compatible with net zero targets.
7 Recommendation Rejected
First Report - The financial secto…
Set a clear date for ending new North Sea oil and gas licensing rounds.
We reiterate the recommendation of our earlier report that the Government set a clear date for ending new oil and gas licensing rounds in the North Sea: this date should fall well before 2050. (Paragraph 57) Plans for transition: reporting … Read more
Government Response
The government rejects setting an end date for new oil and gas licensing rounds, arguing that the domestic industry is vital for energy security and the Offshore Petroleum Licensing Bill will ensure regular annual licensing.
Government Response AI assessment · 32 of 22 classified

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