Make Transition Plans and TNFD Mandatory – UK EAC  

A UK Parliamentary body has warned the government that it is stalling the financial sector’s progress on net zero through “mixed messages”  including delays to policy initiatives and seemingly prioritising fossil fuels in the name of energy security. The Environmental Audit Committee (EAC) held an inquiry this year with the financial sector on the UK’s net zero transition and has today published a report of the findings. During the inquiry, the Committee heard that the UK government holds the position as being “out in front of the peloton”, with other countries following its lead in terms of transition planning. But the Committee also expressed concern that the ‘comply or explain’ approach to mandatory transition plans by companies defeats the point of the policy, as a company could meet the requirements by simply disclosing that it does not have a plan. It urged the government to move towards making transition plans mandatory and also recommended it phase in compulsory Taskforce on Nature-related Financial Disclosures (TNFD) over the next three to five years. The Committee also called on the government to progress with a Carbon Border Adjustment Mechanism as soon as possible.   

 

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