The UK Parliament’s cross-party Environmental Audit Committee has launched an inquiry into how HM Treasury influences government decision-making on climate change, nature loss and environmental sustainability, including whether fiscal rules and spending constraints limit investment in environmental policy and the UK’s ability to meet its legal environmental obligations. The inquiry will examine how the Treasury assesses the long-term economic risks of climate change and biodiversity loss, and whether factors such as sustainability and natural capital inform decisions alongside traditional measures such as gross domestic product (GDP). It will also consider the extent to which environmental duties, including the Environmental Principles Policy Statement, are applied in Treasury policy decisions and review progress on implementing recommendations from the Dasgupta Review on the Economics of Biodiversity.
UK Parliament 2026-04-16
UK Parliament’s Environmental Audit Committee launches inquiry into HM Treasury’s fiscal rules and climate and nature policy
The UK Parliament’s Environmental Audit Committee has launched an inquiry into how HM Treasury shapes government decision-making on climate change, nature loss and environmental sustainability, including whether fiscal rules and spending constraints limit environmental investment and compliance with legal obligations. The inquiry will assess how the Treasury evaluates long-term economic risks from climate and biodiversity loss, the role of sustainability and natural capital in decision-making alongside GDP, the application of environmental duties, and progress on implementing the Dasgupta Review.