Financial Services: Environment Protection
The question
To ask the Chancellor of the Exchequer, what discussions she has had with (a) the Financial Policy Committee and (b) Prudential Regulation Committee on their roles in ensuring macro-financial stability during the transition to a nature-positive economy.
Answered by Emma Reynolds
The Government is committed to integrating nature into economic and financial decision-making. The Financial Policy Committee’s latest remit, as set out by the Chancellor in November 2024, sets out that the Committee should continue to consider the materiality of nature-related financial risks in relation to its primary objective of protecting and enhancing financial stability.
The remits for the Financial Policy Committee and Prudential Regulation Committee also make clear that they should support the Government’s approach to accelerate the transition to a climate resilient, nature positive, and net zero economy.
The Chancellor and the Governor of the Bank of England meet regularly to discuss the outlook for UK financial stability.
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