Commenting on the green measures within the Chancellor’s Budget,
Environmental Audit Committee Chairman, Rt Hon MP, said:
“The economy is on its knees after the pandemic and successive
lockdowns, and it is completely right that protecting jobs and
livelihoods has been prioritised. I am delighted that the Bank of
England remit expands to ensure consistency with the goals of net
zero Britain. But the Chancellor has today missed an opportunity
to go further: reducing VAT for green sectors including energy
efficiency upgrades, and investing more significantly in
renewable and low-carbon energy.
“The EAC recommended the Bank of England remit expands to ensure
that its policies are consistent with the transition to a net
zero economy. I am delighted the Chancellor has today announced
that this has been adopted. The Bank must now set out before the
COP26 summit the steps it will take to reduce the carbon
footprint of its corporate bond portfolio to align with the
temperature goals of the Paris Agreement.
“The investment in the UK’s low-carbon clusters is welcome. Our
Committee has previously called for investment in offshore wind
port infrastructure, and although the £20 million is a positive
step forwards, it is a drop in the ocean. The additional
investment in a hydrogen hub and for low-carbon energy storage
are also good news.
“It is welcome that the National Infrastructure Bank will be
charged with helping to deliver net-zero carbon infrastructure,
but its mandate must also prioritise investment in measures to
restore nature and protect wildlife.
“Only two weeks ago the Environmental Audit Committee warned the
Government that time is running out to limit the effects of
climate change. Expanding the remit of the Bank of England is a
globally significant step in the transition to zero carbon. But
despite constraints on the Chancellor’s scope for manoeuvre from
the economic consequences of covid-19, as this is the year when
the UK hosts COP26 and the eyes of the world are on him, he has
missed opportunities in other areas to put his stamp on efforts
to grow back greener.”
