Climate Change: Finance

Treasury written question – answered am ar 23 Mai 2024.

Danfonwch hysbysiad imi am ddadleuon fel hyn

Photo of Stephen Farry Stephen Farry Alliance, North Down

To ask the Chancellor of the Exchequer, whether he plans to amend fiscal rules to (a) incentivise and (b) reward spending on climate change mitigation measures.

Photo of Bim Afolami Bim Afolami The Economic Secretary to the Treasury

The Government is committed to sustainable public finances and delivering on the priority of getting debt falling over the medium-term. To deliver on this priority, the Government has fiscal rules – the rules require underlying debt to be falling and borrowing to be below 3% of GDP in the fifth year of the rolling forecast period. The fiscal rules are comprehensive, and targeting public sector wide measures means the impact of Government decisions on the public finances is clearly reflected.

The Government is committed to ensuring fiscal decision making is aligned with achieving net zero and our legally binding environmental targets. The Green Book requires departments to assess the climate and environmental impacts of policy proposals, with major bids and proposals at fiscal events assessed according to these impacts, and Spending Review 2021 was developed alongside the Net Zero Strategy to ensure our plans were funded.

Spending Review 2021 committed £30 billion of domestic investment for the green industrial revolution. Since then, we have committed a further £6 billion for energy efficiency in the next parliament, up to £20 billion of long-term funding for early deployment of carbon capture, usage and storage, and over £1 billion for green industries supply chains through the Green Industries Growth Accelerator.

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