Treasury committee relaunches decarbonisation inquiry

A cross-party group of MPs has relaunched its inquiry into the decarbonisation of the UK economy and green finance.

As part of the relaunched inquiry, the treasury select committee said it will also be looking for evidence on how and whether the UK’s response to coronavirus should take the government’s net zero carbon emissions by 2050 target into account.

‘The committee has received a great deal of evidence since launching this inquiry over a year ago. But with the impact on the economy of coronavirus, clearly much has changed,’ said committee chair, Mel Stride.

‘The Climate Assembly’s report published last month said that post-lockdown steps to aid economic recovery should drive progress to achieve net zero.

‘So now is the time to ask whether the government can seize the opportunity presented by the crisis to further green the economy to achieve net zero by 2050,’ added the chair.

‘Whether the level of HMT support should depend on how much companies pollute, or if it should directly fund green infrastructure, are some of the issues that we would like evidence on.’

This inquiry will cover:

• The economic opportunity that decarbonisation presents for the UK, and the potential of the green finance sector
• HMT’s strategy in facilitating clean growth and its response to the CCC’s net-zero recommendations
• The role of the Spending Review in facilitating net-zero
• The role that financial services firms are currently playing in financing the transition
• The ‘green’ financial product landscape and their associated regulatory environment.

Some of the key questions the committee will consider in this inquiry include:

1. The economic opportunity
2. What economic costs and benefits does decarbonisation present for the UK?
3. What benefits can a growth of the Green Finance sector deliver for the UK, and does the UK hold a competitive advantage in this space?
4. How might HMT deliver a regionally balanced and ‘just’ transition across the UK?
5. HMT’s strategy
6. What is HMT’s current strategy, and approach to, UK decarbonisation, and is it fit for purpose?
7. How does HMT work with the Clean Growth Strategy and government departments to support decarbonisation? Is this working well?
8. How should HMT’s approach evolve to ensure the government meets the legally binding net-zero target?
9. What role should the 2020 Comprehensive Spending Review play in UK decarbonisation? What projects or measures should receive additional funds through this process?

More information on the inquiry is available from the committee’s website.

Photo Credit — Mikes Photos (Pixabay)