Asked by: Baroness Hayman (Crossbench - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government, further to commitments made in the consultation outcome, Climate and investment reporting: setting expectations and empowering savers, published on 21 October 2021, to review mandatory disclosures by occupational pension schemes and requirements on stewardship activities; (1) when the review will begin, (2) whether they will publish a call for evidence, (3) how they will decide which stakeholders to engage with, and (4) when they expect to publish the results of the review.
Answered by Viscount Younger of Leckie - Shadow Minister (Work and Pensions)
I would like to assure the Baroness that, as set out in the consultation response Climate and investment reporting: setting expectation and empowering savers, we will review requirements on disclosures and stewardship activities in the second half of 2023. The exact form and publication timeline of the review are being determined in conjunction with wider and ongoing stewardship review activities.
Asked by: Baroness Hayman (Crossbench - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask His Majesty's Government (1) when, and (2) how, heat network customers will receive payments from the Energy Bills Support Scheme Alternative Fund.
Answered by Lord Callanan - Shadow Minister (Foreign, Commonwealth and Development Office)
Eligibility, timescales and method of delivery for the Energy Bills Support Scheme Alternative Funding will be announced in the coming weeks.
Asked by: Baroness Hayman (Crossbench - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask His Majesty's Government how much money was spent both commercially and domestically on energy in the UK in (1) 2019, (2) 2020, and (3) 2021; and what assessment they have made of the expected expenditure on energy in (a) 2022, and (b) in each subsequent year to 2030.
Answered by Lord Callanan - Shadow Minister (Foreign, Commonwealth and Development Office)
The value of expenditure on all UK energy, by sector, for 2019, 2020 and 2021, is published as part of the Digest of UK Energy Statistics (DUKES) value balances.
Statistics on energy expenditure for 2022 will be published in July 2023 and will reflect the support government has announced for both non-domestic and domestic energy consumers over the winter. For example, the Energy Price Guarantee will save the typical household around £700 on its energy bill over six months to March 2023.
Over the longer-term, policies to improve energy efficiency and increase low carbon energy supply will help to reduce both the amount of energy consumed and exposure to volatile international fossil fuel prices.
Asked by: Baroness Hayman (Crossbench - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government, further to the answer by Lord Callanan on 2 December (HL Deb, col 1458), how much oil from the proposed development at Cambo is predicted to be exported; and whether future exports will be considered when deciding on planning consent for the Cambo oil field.
Answered by Lord Callanan - Shadow Minister (Foreign, Commonwealth and Development Office)
No decision has yet been made regarding the proposed Cambo field.
Asked by: Baroness Hayman (Crossbench - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government what countries North Sea oil and gas are exported to; and what quantity is exported to each country.
Answered by Lord Callanan - Shadow Minister (Foreign, Commonwealth and Development Office)
Export destinations of primary oils are published in the Digest of UK Energy Statistics table 3.10.
Export destinations of natural gas are published in the Digest of UK Energy Statistics table 4.5.
To note, the UK records exports of crude oil and natural gas but does not separately identify oil and gas that was originally extracted from the UKCS. Exports shown will include oil and gas produced in the North Sea as well as oil and gas that originated elsewhere and has subsequently been re- exported.
Asked by: Baroness Hayman (Crossbench - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government what quantity of oil and gas is (1) exported from, and (2) imported to, the UK annually, for each different classification of those substances.
Answered by Lord Callanan - Shadow Minister (Foreign, Commonwealth and Development Office)
Imports and exports of primary oil are published in the Digest of UK Energy Statistics table 3.1.
Imports and exports of petroleum products are published in the Digest of UK Energy Statistics table 3.2.
Imports and exports of natural gas are published in the Digest of UK Energy Statistics table 4.1.
Asked by: Baroness Hayman (Crossbench - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment that have made of the size of the financial services market (1) regulated by the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA), (2) to which the remit, recommendations and priorities letters sent by HM Treasury to the FCA and PRA on 23 March 2021 apply, and (3) to which the provisions of the Financial Services Act 2021 apply with respect to the requirements on the FCA and PRA to have regard to the target in section 1 of the Climate Change Act 2008.
Answered by Lord Agnew of Oulton
The Financial Conduct Authority (FCA) regulates around 51,000 firms, of which around 1,500 are also regulated by the Prudential Regulation Authority (PRA). As set out in the Financial Services and Markets Act 2000 and the Bank of England Act 1998, the letters of recommendations issued by the Chancellor of the Exchequer to the FCA and the Prudential Regulation Committee (PRC) apply to the advancement of the regulators’ objectives and the discharge of their duties. As such, where relevant and practical, the letters of recommendations apply to the FCA and PRA’s policymaking in all areas they regulate.
The Financial Services Act 2021 introduced a number of different measures which are vital to enhance the UK’s world-leading prudential standards, promote financial stability, promote openness between the UK and international markets, and maintain an effective financial services regulatory framework and sound capital markets. The government’s assessment of the Financial Services Act 2021 was set out in the accompanying Impact Assessment.
Under the Financial Services Act 2021, both the FCA and PRA must have regard to the UK’s net zero emissions target when making rules that introduce the Investment Firms Prudential Regime (IFPR) and implement the remaining Basel standards as contained in the Capital Requirements Regulation respectively. This provision applies to those rules made after 1 January 2022.
As noted in the Impact Assessment for the Financial Services Act 2021, there are currently around 3,200 investment firms which fall under the IFPR. There are around 1,500 firms subject to the Capital Requirements Regulation.
Asked by: Baroness Hayman (Crossbench - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment that have made of the size of the financial services market to which (1) the Financial Services Act 2021 applies, and (2) the climate change provisions of the Financial Services Act 2021 in (a) Schedule 2, section 143G(1)(c), and (b) Schedule 3, section 144C(1)(d) apply.
Answered by Lord Agnew of Oulton
The Financial Conduct Authority (FCA) regulates around 51,000 firms, of which around 1,500 are also regulated by the Prudential Regulation Authority (PRA). As set out in the Financial Services and Markets Act 2000 and the Bank of England Act 1998, the letters of recommendations issued by the Chancellor of the Exchequer to the FCA and the Prudential Regulation Committee (PRC) apply to the advancement of the regulators’ objectives and the discharge of their duties. As such, where relevant and practical, the letters of recommendations apply to the FCA and PRA’s policymaking in all areas they regulate.
The Financial Services Act 2021 introduced a number of different measures which are vital to enhance the UK’s world-leading prudential standards, promote financial stability, promote openness between the UK and international markets, and maintain an effective financial services regulatory framework and sound capital markets. The government’s assessment of the Financial Services Act 2021 was set out in the accompanying Impact Assessment.
Under the Financial Services Act 2021, both the FCA and PRA must have regard to the UK’s net zero emissions target when making rules that introduce the Investment Firms Prudential Regime (IFPR) and implement the remaining Basel standards as contained in the Capital Requirements Regulation respectively. This provision applies to those rules made after 1 January 2022.
As noted in the Impact Assessment for the Financial Services Act 2021, there are currently around 3,200 investment firms which fall under the IFPR. There are around 1,500 firms subject to the Capital Requirements Regulation.
Asked by: Baroness Hayman (Crossbench - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government what assessment they have made as to whether voluntary pledges by the UK financial sector will be sufficient to ensure that sector's carbon emissions are reduced in line with the goals of the Paris Agreement.
Answered by Lord Callanan - Shadow Minister (Foreign, Commonwealth and Development Office)
The UK was the first major economy to commit to Net Zero by 2050, and to achieve that ambition, we want to ensure that every financial decision takes climate change into account. This will require a drastic increase in the quantity, quality and comparability of climate-related disclosures. That is why, in November 2020, my Rt. Hon. Friend Mr Chancellor of the Exchequer announced the UK’s intention to make disclosures in line with the recommendations of the Task Force for Climate-related Financial Disclosures mandatory in the UK across the economy, including the financial services sector, by 2025. This commitment is world-leading and significant progress towards achieving our ambition, including new requirements for premium-listed firms to disclose their greenhouse gas emissions, has already been made.
We have committed to implementing a green taxonomy that will establish a common definition for ’sustainable economic activities’ and improve understanding around the impact of firms’ activities and investments on the environment. Together, these measures will ensure that firms across the whole economy are disclosing robust and comparable climate and sustainability-related information that is decision-useful for investors. This will help close the sustainability data gap, as well as preventing greenwashing and supporting the greening of the UK economy.
Finance is one of the four over-arching goals of the UK Government’s COP26 Presidency. At the core of the COP26 finance campaign is the creation of a private finance system for net zero. This entails building a virtuous cycle of innovation and investment, making sure that policies, business plans and investment decisions all align with net zero targets. As a result, we are already seeing very positive momentum within the private finance sector. For example, the Glasgow Financial Alliance for Net Zero has secured commitments from 160 firms (together responsible for assets in excess of $70tn) across the global financial system to accelerate the transition to net zero emissions. All members must be accredited by the UN Race to Zero campaign and use science-based guidelines to reach net zero emissions, covering all emissions scopes (including a 2030 interim target). Hence, there is already a large push for voluntary setting of net zero targets by financial institutions.
Asked by: Baroness Hayman (Crossbench - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government what assessment they have made of the carbon emissions produced by the UK financial sector.
Answered by Lord Callanan - Shadow Minister (Foreign, Commonwealth and Development Office)
The UK follows the agreed international approach for estimating and reporting greenhouse gas emissions under the UN Framework Convention on Climate Change (UNFCCC), which is for countries to report emissions produced within their territories. All UK domestic and international greenhouse gas emissions reductions targets, including our Net Zero commitment, are based on these territorial emissions.
The UK was the first major economy to commit to Net Zero by 2050, and to achieve that ambition, we want to ensure that every financial decision takes climate change into account. This will require a drastic increase in the quantity, quality and comparability of climate-related disclosures.
That is why, in November 2020, my Rt. Hon. Friend Mr Chancellor of the Exchequer announced the UK’s intention to make disclosures in line with the recommendations of the Task Force for Climate-related Financial Disclosures mandatory in the UK across the economy, including the financial services sector, by 2025. This commitment is world-leading and significant progress towards achieving our ambition, including new requirements for premium-listed firms to disclose their greenhouse gas emissions, has already been made.
We have also committed to implementing a green taxonomy that will establish a common definition for ’sustainable economic activities’ and improve understanding around the impact of firms’ activities and investments on the environment. Together, these measures will ensure that firms across the whole economy are disclosing robust and comparable climate and sustainability-related information that is decision-useful for investors. This will help close the sustainability data gap, as well as preventing greenwashing and supporting the greening of the UK economy.