MPs to scrutinise Government's green finance strategy
MPs have launched a wide-ranging investigation looking at how the UK Government aims to fulfil its pledge to become a "world leader" in green finance.
The inquiry will focus on key issues such as the UK’s post-Brexit relationship with the European Investment Bank, which has invested more than £13.4bn into the British economy on climate projects over the past five years.
MPs will also look at how company reporting on climate liabilities and risks can be encouraged by the Government. They will investigate whether the Task Force on Climate-related Financial Disclosures’ (TCFD) voluntary approach is sufficient to boost climate-risk disclosure.
The measures set out in the Clean Growth Strategy to accelerate the UK’s green finance capabilities will be scrutinised by the Environmental Audit Committee (EAC), which is inviting written submissions on whether the UK is likely to reach levels of investment needed to meet its environmental commitments.
“The UK needs billions of pounds of public and private investment to decarbonise the economy and upgrade our transport, energy and industrial infrastructure,” EAC Chair Mary Creagh said.
“The Government says it wants to be a global leader in green finance. We will scrutinise its plans in the Clean Growth Strategy, look at the Bank of England’s proposals on disclosure of climate-related financial risk, and examine what will happen to UK climate investment if we leave the European Investment Bank."
The EAC will look at how the Government’s recently launched Green Finance Taskforce can accelerate private sector funding in green technologies. The Taskforce is currently examining various low-carbon finance approaches such as scaling up green mortgages and making infrastructure investment more sustainable.
Another key topic is the current state of the Green Investment Group (GIG), formerly known as the Green Investment Bank (GIB). The EAC will examine whether new owner Macquarie has lived up to its promise to ensure the bank continues its original aim of delivering low-carbon finance.
Individuals and businesses will have until 3 January 2018 to submit written submissions to the EAC.