UK firms are now obliged to get rid of Greenwashing – amidst COP26 announcement of the UK becoming the first-ever net-zero aligned state
Leaders at the COP26 global climate conference in Glasgow have promised to check deforestation by the end of 2030 and cut off methane emissions to diminish the effects of climate deterioration.
Under the new Treasury rules, listed companies in the UK must devise net-zero transition plans. These plans are said to be published by 2023. While these events take place, solidify your list of environment dissertation topics. Seek the help of our experts at British Dissertation Help to get a fresh perspective on your Environment Assignment Writing project.
Chancellor Rishi Sunak’s message
- Chancellor Rishi Sunak tells COP26 they will move towards making it mandatory for firms to publish a clear, deliverable plan setting out how they will decarbonise and transition to net-zero. He thinks global finance should create a tangible difference in lives by providing cheap and clean electricity to power schools and hospitals.
- Although missing the target of providing $100bn to developing countries by 2020 is dissatisfactory, he mentions using $500bn will be mobilised between 2021 and 2025 for this purpose.
The implication of this announcement
- By 2023, Most big UK firms and financial institutions need to show how they intend to hit climate change targets under new Treasury rules. They will have to set out detailed public plans for how they will move into a low-carbon future. In line with the UK’s 2050 net-zero target, firms will be making choices on how they intend to decarbonise the emissions.
- On the third day of the COP26 climate summit in Glasgow, Chancellor Rishi Sunak outlines the Action plan.
- He said that advances to “rewire the entire global financial system for net zero” under the UK’s leadership of the conference are in action. The strategies will need to include targets to reduce greenhouse gas emissions and steps that firms intend to take to get there.
- The plan following the money to net-zero was unveiled, with two-fifths of the world’s financial assets, under the management of banks, insurers and pension funds that have signed up for net-zero goals limiting global warming at 1.5C. This step implies that the swift arrow of finance will be fired towards technologies that lower and eradicate carbon emissions away from investments in coal, oil and gas.
Promises by the UK Government
On Tuesday, Prime Minister Boris Johnson expressed his “cautiously optimistic” views about the progress made at the summit.
- The government will also set up a Transition Plan Taskforce consisting of industry leaders, academics, regulators and civil society groups. It will set a scientific “gold standard” for the plans to guard against so-called “greenwashing” – where environmental initiatives are nothing but marketing strategies.
- However, the government said no definite standard as to what a good transition plan should resemble. The government is aiming for the increase of transparency and accountability as the UK was not making firm-level net-zero commitments mandatory.
- David Barmes is a senior economist at the campaign group Positive Money. He mentioned that it is positive to see financial institutions scaling up their green finance commitments. But this announcement says nothing of the billions of dollars they are still pouring into environmentally harmful projects. He emphasised the need for public institutions rather than bank CEOs to administer the standard-setting and deliver green investment.
But the question remains whether financial measures are better than strict regulatory policies for such fundamental ecological, economic and social change to be administered? By changing the financial system, one should never expect that the locus of every sector, from the economic sector to health, from energy to transport, food to clothing, will decarbonise automatically. For complex Environment Dissertation Topics like this one, consider taking specialised Environment Assignment Help from our expert writers at British Dissertation Help and nail your Environment Assignment Writing project tension-free.