Taskforce on Nature-related Financial Disclosures
Baroness Willis of Summertown Excerpts(2 weeks, 6 days ago)
Lords ChamberRead Full debate Read Hansard Text Watch Debate Read Debate Ministerial Extracts
Baroness Willis of Summertown
To ask His Majesty’s Government what progress they have made in exploring how best the Taskforce on Nature-related Financial Disclosures framework can be incorporated into UK policy and legislation in line with their commitment in the 2023 Green Finance Strategy.
Baroness Willis of Summertown (CB)
I beg leave to ask the Question standing in my name on the Order Paper and refer to my declaration of interests in the register.
The Minister of State, Department for Environment, Food and Rural Affairs, and Foreign, Commonwealth and Development Office (Lord Benyon) (Con)
My Lords, the Government remain a big supporter and funder of the Taskforce on Nature-related Financial Disclosures. At COP 26, the UK backed the International Sustainability Standards Board to bring much-needed harmonisation to global sustainability reporting. I am pleased that the ISSB recently confirmed that it will explore a nature standard, drawing on the work of the TNFD. The Government have established a framework for once that standard is developed to assess the ISSB’s standards for suitability in the UK context.
Baroness Willis of Summertown (CB)
I thank the Minister for his response, but I worry that we are just not moving fast enough. For example, last week the Green Finance Institute published a report that found that UK firms are now highly exposed to nature risk and that nature degradation could slow down our GDP, with an estimated 12% loss in the near term. Putting that into context, that is a greater drop than we saw during the Covid pandemic. Does the Minister agree that ambitious policy is urgently needed on this, as well as mandatory disclosures against the TNFD, to enable UK companies to understand better their impacts on and risks from the environment, particularly nature and the ecosystem services that it provides?
Lord Benyon (Con)
The noble Baroness is absolutely right. Assessing the Materiality of Nature-Related Financial Risks for the UK is an outstanding report, which needs to be read by chairmen of risk companies all over the world. It identifies precisely that this problem is not just about the environment but about risk. The net-zero economy grew by 9% last year. The value of net-zero technologies is now £74 billion, and the same will happen for nature. Therefore, there is an economic imperative as well as one that should drive us because we need to do the right thing for nature.
Glasgow Leaders’ Declaration on Forests and Land Use
Baroness Willis of Summertown Excerpts(1 year, 5 months ago)
Lords ChamberRead Full debate Read Hansard Text Watch Debate Read Debate Ministerial Extracts
Baroness Willis of Summertown
To ask His Majesty’s Government what steps they have taken since they committed to the Glasgow Leaders’ Declaration on Forests and Land Use on 2 November 2021; and what plans they have to increase investment internationally to support agroecological transitions in lower and middle-income countries.
The Minister of State, Foreign, Commonwealth and Development Office (Lord Goldsmith of Richmond Park) (Con)
My Lords, there is no solution to climate change without nature, which is why, as part of our COP 26 presidency, the UK moved nature from the margins of the debate to its centre. We secured commitments from 145 countries, representing 91% of the world’s forests, to end deforestation in this decade. Alongside that, we secured financial commitments worth around $20 billion to help those countries deliver, as well as pledges from the multilateral development banks, financial institutions and the world’s biggest commodity traders to align their businesses with that goal. Since then, the UK has created the Forests and Climate Leaders’ Partnership, which we launched at COP 27, to provide a long-term delivery mechanism for building momentum and holding all those parties to account.
Baroness Willis of Summertown (CB)
My Lords, I am very encouraged that the Government have committed £3 billion for nature in their climate finance Bill but, another year on and with another COP over, we have no clearer understanding of where and how that money is to be spent. Can the Minister reassure us that land use for agroecology and other sustainable farming practices that have huge potential for biodiversity, climate mitigation and providing food security in low-income countries will receive some of this funding, and that it will not be focused just on forests? Can he also confirm that supporting those agroecological systems will be included as a key objective in the ongoing integrated review of foreign policy?
Lord Goldsmith of Richmond Park (Con)
My Lords, I do not think anyone would pretend that we do not need more progress or do not need to accelerate efforts to reverse deforestation, but the pledges that were secured at COP are being delivered. Through the Global Forest Finance Pledge, which is the umbrella pledge for all this, the UK committed £1.5 billion over five years. So far, 22% of that pledge has been spent, so we are on track to meet that commitment. Specifically, we made commitments around the Congo basin; around $300 million of the $1.5 billion that was secured or promised at COP 26 has now been disbursed and spent in that region. Likewise, through our pledge to indigenous people in local communities, we secured a commitment of $1.7 billion from 22 different donors around the world. So far, nearly 20% of that money has already been invested, so we are on track to meet the commitments that we made. I should say, as I have not answered the noble Baroness directly, that a significant focus of UK funding has been on the promotion of agroecology.