MPs to put green finance under the microscope

A parliamentary committee is to examine the government’s plans for the UK to become a world leader in green finance.

The environmental audit select committee announced the details of its new inquiry, which will examine a series of issues, around the government’s strategy to develop ‘world-leading’ green finance capabilities.

The inquiry will examine the measures set out in the Clean Growth Strategy, which was published in October, particularly around setting up a Green Finance Taskforce.

It will also look at whether the mechanisms in the strategy are sufficient to generate the investment needed for the UK to meet its environmental commitments.

It will also consider is whether the Green Investment Group (formerly the Green Investment Bank) is fulfilling commitments made by its new owners, the Macquarie Group to ensure it ‘remains one of the leading investors in green infrastructure’ in UK and Europe.

The committee will also consider the UK’s future relationship with the European Investment Bank and the crossover between the UK’s newly-created Green Finance Taskforce and the EU High Level Group on Sustainable Finance.

And the inquiry will also look at how leaving the EU will affect the UK’s ability to leverage investment into low-carbon and environmentally-friendly projects here in the UK.

The inquiry will look at what options exist for the UK’s future relationship with the European Investment Bank and what would be the implications for green investment in this country.

‘The UK needs billions of pounds of public and private investment to decarbonise the economy and upgrade our transport, energy and industrial infrastructure,’ said committee chair, Mary Creagh.

‘The government says it wants to be a global leader in green finance, added the chair.

‘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 deadline for submissions to the committee is 3 January, 2018.