ICE submission to the Environmental Audit Committee on HMT and the economics of climate and nature

The Environmental Audit Committee is exploring the role of HM Treasury in shaping the UK’s response to climate change and nature loss.

Its focus includes how HM Treasury influences the government’s approach to environmental sustainability through economic policy, appraisal frameworks and funding decisions.

The ICE’s submission makes the following key points:

• Recent updates to the Green Book are an opportunity for a bold evolution in how public investment is appraised, allowing for more nuanced, context-sensitive decision-making.
• The need for more and better data to improve understanding of asset-level resilience and the nature of potential cascading failures across systems.
• The need for the government to commission a national review of the economics of adaptation to understand the value it provides to support the case for investment.
• The need for a fundamental shift in governance, with clear leadership and coordinated policy that crosses the traditional silos of government departments.
• Ensuring the National Wealth Fund has the clarity of purpose and the right tools, structure and risk appetite to mobilise private finance in support of climate and nature outcomes.