Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, pursuant to the Prime Minister's oral evidence to the Liaison Committee of 16 December 2014, HC 887, Question 4, whether the Government endorses the current guidelines on the use of revenues raised from the auctioning of carbon emissions allowances under the EU emissions trading system; if he will provide a breakdown of the UK's intended use of these revenues; and if he will make a statement.

The Government is party to the EU ETS directive which states that at least 50 % of auctioning revenues or the equivalent in financial value of these revenues should be used by Member States for climate and energy related purposes. While HMG does not hypothecate spend, this Government spends more on domestic and international climate change related activity than it receives through the EU ETS auctions. Revenue raised through the auctioning of carbon emissions is remitted to the consolidated fund to support general expenditure. The Budget and spending review process ensures that these resources are allocated most efficiently to deliver government objectives.