Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, if he will request the Financial Policy Committee (FPC) of the Bank of England to provide them with their most recent assessment of risks to UK financial stability arising from investment in high-carbon assets; and if he will place in the Library that request and the FPC response.

On the 8^th July 2014, Mark Carney, the Governor of the Bank of England, sent a letter to the Environmental Audit Committee (EAC). In the letter he stated that the FPC’s current assessment of the risks to financial stability were set out in the latest Financial Stability Report which was published on the 26^th June 2014. That assessment showed that the FPC did not consider investment in high-carbon assets to be a material risk to financial stability at that time. However, Governor Carney did reassure the EAC that the FPC will continue to monitor a range of threats in its regular risk assessment, and will seek to discuss with the Committee on Climate Change if its assessment of risk associated with a carbon bubble changes.