Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether he has taken any steps since the publication in 2020 of the Doubling Back and Doubling Down G20 scorecard on fossil fuel funding to improve the UK’s (a) very poor rating for progress in ending support for fossil fuels, (b) opaque rating for transparency and (c) overall ranking as joint last of OECD nations; and if he will make a statement.

The UK does not give any subsidies to fossil fuels, and follows the approach of the International Energy Agency, which defines fossil fuel subsidies as measures that reduce the effective price of fossil fuels below world market prices.

The International Energy Agency has a long-standing track record in systematically measuring fossil-fuel subsidies using a commonly applied methodology. This definition was originally developed with the European Commission and G20 EU Member States to respond to the G20 commitment to phase out such subsidies.

The government takes its environmental responsibilities seriously, and recently published the Net Zero Strategy on how the UK will deliver on its commitment to reach net zero emissions by 2050. Pricing carbon (including through tax) is one of the most efficient tools for promoting decarbonisation and already plays a key role in helping the UK achieve net zero emissions. There are also a number of taxes, including the Climate Change Levy and Vehicle Excise Duty, that are designed to encourage businesses and consumers to make greener choices.

The government keeps all taxes under review, and any changes are made in the round at fiscal events.