FIN.

Chancellor outlines climate change recommendations for the regulators

Rishi Sunak has written to the FCA and the BoE setting out recommendations in relation to the government’s commitment to achieve net zero by 2050 to supplement those outlined in his letters of March 2021.

The Chancellor welcomes the work the FCA has done to date in respect of the government’s commitment, including the TCFD rules and development of Sustainability Disclosure Requirements. Similarly, he acknowledges the work of the Prudential Regulation Committee and the Financial Policy Committee, including the launch of the climate change focussed Biennial Exploratory Scenario exercise.

Building on the 2021 recommendations, the Chancellor says that, where practical and relevant, the regulators should also have regard to the government’s energy security strategy and the role that the financial system will play in supporting this as part of the UK’s route to net zero – including through investment in transitional hydrocarbons.

Lucy Hadrill