InvestmentsNov 27 2017

MPs to probe government's green investment plans

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MPs to probe government's green investment plans

The Environmental Audit Committee of the House of Commons is to investigate the government’s commitment to developing financial infrastructure for the environmental sector in light of the privatisation of the Green Investment Bank.    

The committee, chaired by the Labour MP Mary Creagh, will investigate whether the government is achieving its stated aim of developing "world leading green finance capabilities."

The committee will investigate whether the Green Investment Group, formerly the Green Investment Bank, is fulfilling commitments made by its new owners Macquarie.

It will investigate the UK’s future relationship with the European Investment Bank and how company reporting on climate liabilities and risks could be encouraged.

Over the past five years (2012 to 2016) the European Investment Bank has invested more than £13.4bn in 'climate projects'.

This includes onshore and offshore wind farms, sustainable transport and energy efficient public buildings and social housing in England, Wales, Scotland and Northern Ireland.

The committee will investigate the future funding of such projects in light of the exit of the UK from the European Union and the privatisation of the Green Investment Bank.

Louise Dudley, global equities manager at Hermes, said Sweden’s constitution has a requirement for the public sector to promote sustainable development, which creates a healthy environment for present and coming generations. 

Swedish national pension funds are poised to get a legislative overhaul, which steers them in a sustainable direction.

Alistair Cunningham, director of Wingate Financial Planning, said he has not noticed a sharp increase in demand from clients for funds investing in climate action. 

david.thorpe@ft.com