# UK finance regulators should pay heed to energy security policy, says Sunak
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-04-07
Category: FINANCE
Category URL: https://financedigest.com/category/finance
Meta Title: UK Finance Minister Urges Financial Regulators to Align with
Meta Description: Britain's finance minister Rishi Sunak calls for a balanced approach to regulating banks and investment firms in line with the country's energy
URL: https://financedigest.com/uk-finance-regulators-should-pay-heed-to-energy-security-policy-says-sunakhtml

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By Huw Jones

LONDON (Reuters) – Britain’s finance minister Rishi Sunak on Thursday called on the country’s financial regulators to pay heed to the country’s new energy strategy when it comes to regulating banks and investment firms, a step campaigners said contradicts the push to a net-zero economy.

Britain has published its latest energy strategy document, setting out plans to expand nuclear and offshore wind power, and increase its independence of supply.

Sunak said in letters to the [Financial Conduct Authority and the Bank of England that the government was taking a balanced approach](https://www.financedigest.com/4-key-financial-trends-as-we-approach-2021.html "4 Key Financial Trends as we Approach 2021") by accelerating investment in low- and net-zero carbon technologies, while supporting Britain’s evolving hydrocarbon industry.

Where practical and relevant, the FCA should have regard to the government’s energy security strategy and the important role that the [financial](https://www.financedigest.com/post-brexit-uk-workers-can-have-financial-security.html "Post Brexit – UK workers CAN have financial security") system will play in supporting the UK’s energy security – including through investment in transitional hydrocarbons like gas – as part of the UK’s pathway to net zero,” Sunak said in a letter to the authority.

To reduce our reliance on imported fossil fuels, UK sources of oil and gas have a critical role, both to keep our economy supplied and in [supporting the transition to net](https://www.financedigest.com/seenthis-joins-ad-net-zero-uk-and-supports-drive-in-the-us.html "SeenThis joins Ad Net Zero UK and supports drive in the US") zero,” Sunak added.

UK financial watchdogs were asked by the [finance ministry last year](https://www.financedigest.com/2019-year-must-re-build-public-trust-finance.html "2019 is the year we must re-build public trust in finance") to pay heed to Britain’s net-zero economy targets, and the suggestion that the BoE should facilitate investment in hydrocarbons directly contradicts this, said Fran Boait, executive director of Positive Money, which campaigns for sustainable economic investments.

The BoE [must stop the financial sector pouring billions of pounds into fossil fuels and redirect finance](https://www.financedigest.com/why-the-finance-sector-must-prioritise-mobile-security-over-innovation.html "Why the finance sector must prioritise mobile security over innovation") to renewable energy, she said.

[Banks in Britain have come under pressure](https://www.financedigest.com/factbox-global-banks-take-axe-to-jobs-as-cost-pressures-mount.html "Factbox-Global banks take axe to jobs as cost pressures mount") from campaigners and investors to stop bankrolling coal, oil and gas, the leading causes of man-made greenhouse gas emissions. Investment funds are also keen to tout their green credentials to [attract investors](https://www.financedigest.com/5-ways-that-start-ups-can-attract-investors.html "5 Ways That Start-Ups Can Attract Investors").

Most leading lenders globally have pledged to [reach net-zero emissions across their financing](https://www.financedigest.com/700000-employees-across-the-uk-have-access-to-fair-finance-will-reach-one-million-employees-in-2017.html "700,000 Employees Across The UK Have Access to Fair Finance, Will Reach One Million Employees in 2017") by 2050.

(Reporting by Huw Jones; Editing by Susan Fenton, Jonathan Oatis and Emelia Sithole-Matarise)


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