Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the effectiveness of the EU’s sustainable finance action plan; and what steps he plans to take to ensure that the financial services sector in the UK is competitive in sustainable finance.

The UK supported the development of the EU Sustainable Finance Action Plan whilst a member state and has committed to match its ambition in the UK. The Green Finance Strategy, published in 2019, set out a comprehensive approach to greening the financial system, mobilising finance for clean and resilient growth, and capturing the resulting opportunities for UK firms.

We have so far delivered on and exceeded the ambition set out in that Strategy: We havee set up the Green Finance Institute; become the first major country to mandate TCFD disclosures; committed to implement a green taxonomy; and signalled our intention to issue a Green Gilt at a total of £15bn and will also offer an innovative retail savings product alongside it.

We’ve augmented the Government’s Economic Objectives and the remit of the principal financial regulators to support environmental sustainability and the transition to net zero, and established the UK Infrastructure Bank with a mandate to tackle climate change.

On the international stage, taking advantage of our role as President, we recently secured commitment of the G7 to support moving towards mandatory climate-related financial disclosures, to bring others up to our level of commitment. As we work towards COP26 we have established the Glasgow Financial Alliance for Net Zero, to foster ambition and action for Net Zero in the finance sector and are supporting the convergence and development of international standards in sustainable finance through working with the IFRS and the International Platform on Sustainable Finance.