The below Parliamentary question was asked by Helen Goodman on 2015-10-30.
To ask Mr Chancellor of the Exchequer, what steps he is taking to assess, mitigate and monitor macro-economic risks associated with trends in (a) environmental degradation, (b) resource scarcity, (c) climate change and (d) other aspects of the natural environment.
Greg Hands
HM Treasury regularly undertakes activities to monitor and assess key macroeconomic risks across all sectors of the economy, in line with current priorities.
The Treasury also feeds into the wider work on environmental risks that is undertaken across government: and in particular, through consideration of the analysis, advice and recommendations of the Natural Capital Committee which reports to the government, including HM Treasury, via the Economic Affairs Committee. The NCC’s work includes assessments of environmental trends and their impacts on the economy. The government’s response to the NCC’s third State of Natural Capital Report sets out how this work will be taken forward, including through the development of a 25 Year Environment Plan which will focus on those environmental assets that are most vulnerable to unsustainable use and where investment will deliver the greatest benefit.The Treasury is working closely with Defra to develop this plan.
Departments also work together on the UK contribution to the activities of the EU Raw Materials Initiative, which includes ongoing work that assesses and mitigates materials risks. Additionally, under the Climate Change Act 2008, the Government has a statutory role to produce, on a five-yearly cycle, an assessment of the risks and opportunities for the UK arising from climate change. Reporting under the Adaptation Reporting Power (as set out under the Climate Change Act), allows us to assess how key sectors are identifying risks from climate change and addressing them.