Bank of England Targets Net Zero in Line with Government Ambitions - Smart Energy Decisions

GHG Emissions  -  June 7, 2021

Bank of England Targets Net Zero in Line with Government Ambitions

The Bank of England announced June 3 that it intends to reach net zero emissions by 2050.

The bank’s mandate was changed in March to require it to support the U.K. government’s goal of reaching net zero emissions. To achieve this target, the BoE will address the emissions that result from printing banknotes and from running its buildings, Reuter reported.

The BoE will also require British banks and insurers to measure their exposure to financial risk linked to climate change. This will be supported by a requirement that businesses disclose their climate impact to investors.

“We hold ourselves to the same high standards that we expect of the firms we regulate,” BoE Governor Andrew Bailey said in a statement. “Consequently, we need to ensure that, wherever possible, our own financial operations, such as financial asset portfolios we hold, and our own physical operations, such as emissions from our buildings and printing banknotes, conform to best practice in the measurement, management and mitigation of climate risks.”

Additionally, the bank said it will move 20 billion pounds of corporate bond holdings away from businesses not aiming to reduce carbon emissions, but in a gradual move rather than an immediate divestment.

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