Just transition – The Green Tau

First Sunday of Advent

30th November 2025

Reflection with readings below

The passage from Isaiah sounds like system change – a radical transition from an economy of warfare to one of agriculture. Looking back over recent history, we and previous generations have experienced the transition from canal to rail transport, from horse to car, from coal power stations to gas power stations, from UK based cotton mills to imported cotton, from UK built engines to imported ones, from the UK beach holidays to Mediterranean package deals. Each transition from one dominant industry or medium to another has come with feelings of fear and feelings of optimism, of job losses and job gains, of resistance and of advancement.

Would similar feelings be experienced by those who were traditionally makers of swords and spears who see their skills being devalued? And what of those in ancillary trades – the makers of shields and helmets for example? What about the bankers who financed the wars and took their cut of the spoils? What of the young men who has been taught that manliness was exemplified by bring a warrior? Conversely would there be feelings of optimism and excitement amongst those who make ploughing shares and pruning hooks, or ploughs and grape presses? Amongst those skilled in cultivating the land, in turning wheat into bread and grapes into wine? And amongst the wives and mothers?

On Thursday I attended the National Emergency Briefing where we heard from ten speakers with scientific and similarly qualified backgrounds, talking about the current and future situation vis a vis the impact on us of climate change and biodiversity loss. The morning was both sobering as we heard of the enormity of the risks we face, but equally encouraging when we also heard about the transition that could be made to a healthier, safer (but not cooler – the current increase in temperature and its impacts is already built in) future. But to get to that future will need radical transformation of the way we live, a radical change in the way the government legislates mandatory restrictions on the use and exit from fossil fuels, a radical change in the way resources are distributed – and a radical change in the way the public are informed about the risks and opportunities that lie ahead.

Change and transition can be feel scary and daunting. Has our Christian faith any insights and support to offer? Have we stories to tell that will enable people to hear and understand the truth of our current situation and the potential ways forwards?

The message that runs through all the Bible is one of hope, that destruction will not be the end of all things, that evil snd hatred will not win, that God will be there for us, that the gift of love will never be powerless. From the story of the Garden of Eden to the story of Noah’s Ark, from the Exodus from Egypt to the Exile into Babylon, despite whatever sins have been committed and mistakes made, each story reminds us that God always remains faithful. From a homeless birth to a life on the road, from the mocking of religious leaders to the misuse of power by those in authority, Jesus lived through the now all to common experiences of many of the vulnerable in our world, yet remained true to his calling. And in the strength that came from the power of his resurrection, which he shared through the Holy Spirit, we too have the strength and power to remain true to our calling to be at one with all of creation.

I think our faith tells us of the importance of loving our neighbour – whoever or whatever or where ever they are. It tells us of the importance of listening to others, hearing their pain and anger, understanding how they have experienced life thus far. It tells us of the importance of discerning the truth. It tells us of the need to be humble and generous and sacrificial. And it rejoices in all that is good. It rejoices in the joy of fellowship and friendship. It rejoices in the beauty of creation. It rejoices in the peace that comes from God.

Can we bring these gifts to the conversations about climate change, about biodiversity loss, about social injustice? Can we bring these gifts to conversations about changing our lifestyles – eating less meat and dairy, opting for active travel, insulating our homes, buying what is needful rather than wasteful? Can we bring these gifts to conversations about making a just transition from fossil to renewable energy? Can we bring these gifts about a just transition that enables everyone’s Ila needs to be met? And about how our banking and investments can shape that future? Can we bring these gifts to conversations about how we can prepare for the emergencies that lie ahead – the potential of flash floods, of heatwaves, of power outages – and how we can support each other as resilient communities? Can we bring these gifts to conversations about creating and maintaining green and blue spaces from which we can all benefit?

Yes I think we can and we should – both as individuals and as churches.

NB Franciscans International and the Lutheran World Federation produced a report this autumn about making a Just Transition.

“Just Transition is a transition towards a sustainable economic system where the wellbeing of people and the planet is central. It requires reimagining the dominant capitalist mode., which drives relentless extraction and exploitation. This system must give way to an economy rooted in ecological sustainability, social equity and collective care. Climate action must be embedded within a framework that values human dignity, community resilience and the rights of nature, rather than its commodification.

“Just Transition isa transformation and a shift that calls for systemic change…

“Just Transition is a transition towards climate actions that must be rooted in a robust ethical framework that prioritises justice, fairness and equity for all …”

Click to access COP30_Just_Transition_ENG.pdf

Isaiah 2:1-5

The word that Isaiah son of Amoz saw concerning Judah and Jerusalem.

In days to come
the mountain of the Lord’s house

shall be established as the highest of the mountains,
and shall be raised above the hills;

all the nations shall stream to it.
Many peoples shall come and say,

‘Come, let us go up to the mountain of the Lord,
to the house of the God of Jacob;

that he may teach us his ways
and that we may walk in his paths.’

For out of Zion shall go forth instruction,
and the word of the Lord from Jerusalem.

He shall judge between the nations,
and shall arbitrate for many peoples;

they shall beat their swords into ploughshares,
and their spears into pruning-hooks;

nation shall not lift up sword against nation,
neither shall they learn war any more.

O house of Jacob,
come, let us walk
in the light of the Lord!

Psalm 122

1 I was glad when they said to me, *
“Let us go to the house of the Lord.”

2 Now our feet are standing *
within your gates, O Jerusalem.

3 Jerusalem is built as a city *
that is at unity with itself;

4 To which the tribes go up,
the tribes of the Lord, *
the assembly of Israel,
to praise the Name of the Lord.

5 For there are the thrones of judgment, *
the thrones of the house of David.

6 Pray for the peace of Jerusalem: *
“May they prosper who love you.

7 Peace be within your walls *
and quietness within your towers.

8 For my brethren and companions’ sake, *
I pray for your prosperity.

9 Because of the house of the Lord our God, *
I will seek to do you good.”

Romans 13:11-14

You know what time it is, how it is now the moment for you to wake from sleep. For salvation is nearer to us now than when we became believers; the night is far gone, the day is near. Let us then lay aside the works of darkness and put on the armour of light; let us live honourably as in the day, not in revelling and drunkenness, not in debauchery and licentiousness, not in quarrelling and jealousy. Instead, put on the Lord Jesus Christ, and make no provision for the flesh, to gratify its desires.

Matthew 24:36-44

Jesus said to the disciples, “But about that day and hour no one knows, neither the angels of heaven, nor the Son, but only the Father. For as the days of Noah were, so will be the coming of the Son of Man. For as in those days before the flood they were eating and drinking, marrying and giving in marriage, until the day Noah entered the ark, and they knew nothing until the flood came and swept them all away, so too will be the coming of the Son of Man. Then two will be in the field; one will be taken and one will be left. Two women will be grinding meal together; one will be taken and one will be left. Keep awake therefore, for you do not know on what day your Lord is coming. But understand this: if the owner of the house had known in what part of the night the thief was coming, he would have stayed awake and would not have let his house be broken into. Therefore you also must be ready, for the Son of Man is coming at an unexpected hour.”

Green Tau: issue 100

14th December 2024

How we can make a just transition? Agriculture and land use

Approximately 12% (58MtCO2 as of 2020) of the UK’s greenhouse gas emissions come from farming but of that 10% more than half is methane from livestock and a further 30% is nitrous oxides from fertilisers (1). As the UK moves to a net zero economy, it is obvious that emissions from agriculture need to be reduced – the Climate Change Committee’s target is 21 MtCO2 by 2050. (Agriculture – including deliberate none cultivation of the land – offers opportunities to increase natural carbon absorption which should more than offset this remaining 21Mt of CO2).

The Climate Change Committee which draws up carbon budgets and roadmaps to advise the Government as to the means by which net zero targets can be achieved, recommended in its 2020 report Land use: Policies for a Net Zero UK, the following policy proposals:

Increase tree planting – increasing UK forestry cover from 13% to at least 17% by 2050 by planting around 30,000 hectares (90 – 120 million trees) of broadleaf and conifer woodland each year.
Encourage low-carbon farming practices – such as ‘controlled-release’ fertilisers, improving livestock health and slurry acidification.
Restore peatlands – restoring at least 50% of upland peat and 25% of lowland peat.
Encourage bioenergy crops – expanding UK energy crops to around 23,000 hectares each year.
Reduce food waste and consumption of the most carbon-intensive foods – reduce the 13.6 million tonnes of food waste produced annually by 20% and the consumption of beef, lamb and dairy by at least 20% per person, well within current healthy eating guidelines. (2)

In the summer of this year, 2024, the Climate Change Committee’s report on progress found that reducing emissions from agriculture and land use had slowed and that ‘total emissions from agriculture have not significantly decreased since 2008’! (3) Commenting on the Report, ADAS notes “A key CCC recommendation is that tree planting and peatland restoration must be accelerated. Under the CCC pathways to net zero, tree planting must be scaled up in the 2020s in order for abatement (carbon sequestration and storage) to be sufficient to meet later carbon budgets and reach net zero by 2050. This will require a doubling of current rates to get as close as possible to the targets of 30,000ha of new woodland creation per year by 2025 and 32,000ha of peatland restoration a year by 2026.” (4) As regards reducing livestock levels, whilst figures previously showed a decline, this seems to have plateaued, suggesting further focus here is needed.

Whether through converting more arable or grass lands to woodland, restoring peatlands or by reducing livestock numbers, the farming world is going to have to face ongoing change.

The demands of climate change, go beyond just reducing carbon emissions, and include further action in protecting land, properties and lifestyles from the impacts of increasingly adverse weather conditions and rising sea levels. Again referencing the latest CCC report ADAS notes “This latest CCC report comes after the wettest 18 months on record in England. Farmers and land managers have been among the most affected with thousands of acres of farmland flooded, crop yields down and harvesting delayed, as well as knock-on impacts into this season and likely longer-term.

“The impacts of this record rainfall highlight the urgent need to adapt to the physical risks of climate change, to avoid more costly and less effective adaptations further down the line. The CCC reports that currently the UK’s Third National Adaption programme (NAP3) lacks the ambition and pace to address the scale of climate risks we are already experiencing in the UK”. (6)

Under the terms of the Climate Change Act 2008 the UK is required to produce ‘national adaptation plans’ setting out how the government will protect the country from the impacts of climate change by constructing flood defences, developing green spaces, cultivating drought-resistant crops, and building resilient infrastructure etc. NAP3 covers the period 2023 to 2028. To date most commentators note that the provisions made by NAP3 are inadequate, but clearly they will impact on the farming world whether through more farmland suffering the adverse consequences of droughts and floods, or through changing agricultural practices and changes to land use – eg restoring water meadows, planting more woodland and re-setting peatlands.

At the same time as the need to address climate change by transitioning to net zero, the UK also needs to address biodiversity loss which is another issue linked with the need for change in agricultural practices. As regards England (other parts of the UK have their own policies) the Parliament has noted that “the Environment Act 2021 … set legally binding biodiversity targets ….:

to reduce the risk of species going extinct in 2042, compared with 2022
to create or restore 500,000 hectares of wildlife-rich habitats by 2042
to ensure overall species abundance is increasing rather than decreasing by 2030, and increases by 10% by 2042, compared with 2030”(5)

These are in addition to the UK’s commitment to meet the international Convention on Biological Diversity’s ‘30 by 30 target’ – vis achieving effective conservation and management of at least 30% of land and sea by 2030.

Again these are targets which are going to impact the farming world, through adopting less intensive farming techniques, and through the restoration – and expansion of – hedgerows, ponds, woods, peatlands and meadows etc.

Not all these changes are going to be self financing. It is possible that less intensive farming by reducing the amount – and therefore cost – of inputs such as fertilisers, may be cost neutral, but in most cases less intensive farming will only be financially viable if the end product can be sold to,the customer at an enhanced price. But weather restoring a pond in a field or rewetting peatland will be self financing is perhaps more doubtful. On the other hand the benefit to us as a whole will be significant – so may be we need to work out how we put a value on that benefit and how we work out who pays and how.

It seems to me that we need a conversation that allows farmers and consumers to explore what the options are and how the transition to climate and biodiversity friendly farming can be achieved. If farms are going to have less livestock, are we consumers going to eat less meat? If crops are grown less intensively, are we consumers willing to pay more? And is the government going to ensure that wages and benefits increase commensurately? If farmers are to convert grazing land to woodlands, are we as tax payers, willing to pay for loss of income? Might we instead see the cost as the cost of protecting our homes from flooding? Might those with the resources (financial and volunteering capacity) be willing to purchase farmland with the aim of rewilding it? Will the government provide funds to encourage new rural industries that would provide employment and maintain or reinvigorate rural communities?

We certainly need to have these conversations urgently to ensure both a just transition and to protect our climate and environment for the wellbeing of current and future generations to come. The next five years look as if they are increasingly going to be when decisive action (not just plans) happens.

(3) https://www.theccc.org.uk/publication/progress-in-reducing-emissions-2024-report-to-parliament/

(4) https://adas.co.uk/news/credible-plans-and-actions-urgently-needed-to-decarbonise-uk-agriculture-sector/

(5) https://commonslibrary.parliament.uk/biodiversity-loss-uk-international-obligations/

(6) https://adas.co.uk/news/credible-plans-and-actions-urgently-needed-to-decarbonise-uk-agriculture-sector/

Counting on … day 83

10th April 2024

Carbon Tax – 3

Carbon emissions may be produced outside the country where the final product is consumed. This could be a way of avoiding paying a carbon tax by shifting the emission-producing part of the business elsewhere, or it could equally be a way for a foreign importer to achieve a price advantage over indigenous producers. A good carbon tax needs to be aware of these for means of tax evasion.

The Europe Union is phasing in such a tax avoidance mechanism – it will be 100% in place by 2026.

“The EU’s Carbon Border Adjustment Mechanism (CBAM) is the EU’s tool to put a fair price on the carbon emitted during the production of carbon intensive goods that are entering the EU, and to encourage cleaner industrial production in non-EU countries. By confirming that a price has been paid for the embedded carbon emissions generated in the production of certain goods imported into the EU, the CBAM will ensure the carbon price of imports is equivalent to the carbon price of domestic production, and that the EU’s climate objectives are not undermined. The CBAM is designed to be compatible with WTO-rules.” https://taxation-customs.ec.europa.eu/carbon-border-adjustment-mechanism_en

Just as domestic carbon taxes can disproportionately affect the poor, so carbon taxes can disproportionately affect poor, less developed countries. Wealthy countries can afford to invest in, for example, electric arc furnaces for producing green steel, or in wind farms to generate green electricity, but poorer countries may struggle to invest to the same degree leaving them stuck with using carbon producing industrial processes and therefore subject to more taxation! Just as poorer households need to be supported with subsidies and grants to enable them to shift to greener lifestyles, so poorer countries need to be supported with subsidies and grants from the wealthier nations, to enable them to shift to to greener infrastructures.

Windows of Opportunity

22nd December 2023

Jobs for all in a just transition

As steel plants in the UK switch to electric arc furnaces and the production of green steel, there is likely to be a loss of 5000 jobs. (1) (2)(3) During the slump in the demand for oil during Covid, 2000 jobs were on the line at BP alone. (4) If as is needed, oil production declines there will be job losses.

Similar job losses happened when the UK transitioned away from coal, when the UK lost most of its ship building industry, its motor industry etc.

But need it be so? Surely the green industry offers many new job opportunities

Equally a better financed public sector could – and should – provide well paid and well respected jobs in health care, social care, education, transport, etc.

Friends of the Earth recommend both an apprenticeship scheme to give young people training in job skills that have a long term future, and in investing in new green jobs.

“Green jobs are jobs that have a focus on either reducing carbon emissions, restoring nature or making similar environmental improvements. Sustainability managers in businesses, green transport officers and thermal heating specialists are all examples of green jobs. If we’re to create a greener and fairer future for all after the pandemic, we need more green jobs. Not only will they be good for the planet, they can also help address employment inequalities across the country.

The UK government should invest up to £10 billion over the next 5 years to create 250,000 green apprenticeships in England and Wales, with wage subsidies of 50-100% depending on need. “Devolved nations should receive equivalent funding for programmes within their borders.

Alongside green apprenticeships, we’re also calling for the government to fund £40 billion annually in a green infrastructure investment programme that could create more than 1 million jobs for people of all ages, saving the NHS tens of billions of pounds and delivering other significant benefits like healthier air and warmer homes.

“ Not only do green jobs present a golden opportunity to reverse unemployment, they’re also basic common sense. Right now, young people are being taught and given careers advice on jobs that may not even exist in 10 years’ time. We’re setting them up to fail where we could be training them to succeed.” (5)

(1) https://www.theguardian.com/business/2023/oct/22/british-steel-owner-preparing-to-cut-as-many-as-2000-jobs-report-says?CMP=Share_iOSApp_Other

(2) https://www.theguardian.com/business/2023/sep/15/tata-steel-seals-500m-uk-support-package-but-big-job-losses-feared?CMP=Share_iOSApp_Other

(3) https://neweconomics.org/2023/11/a-just-transition-will-require-steely-resolve-from-policy-makers

(4) https://www.bbc.co.uk/news/explainers-52966609

(5) https://friendsoftheearth.uk/climate/whats-green-job-and-how-can-we-create-more-the

Counting on … day 1.208

3rd November 2023

Another industry highly dependent on energy is the steel industry. Traditionally that has come from coal, but electric furnaces are providing a less environmentally damaging alternative, producing what is termed ‘green steel’. Providing investment to enable British based steel plants to switch is becoming an election issue. The Guardian reported that “Labour is promising to invest £3bn in smoothing the green transition should it win power at the next election. This is substantially more than the offers made by Mr Sunak’s government to Tata Steel and the Chinese Jingye Group, the respective owners of the Port Talbot works and British Steel. As Sir Keir pointed out, with the right kind of backing and vision from Westminster, domestic steel production can become a crucial component in meeting Britain’s clean power targets. That, in turn, will help protect good, well-paid jobs in regions that desperately need them. Britain is set to require more, not less, steel as it builds net zero machinery and infrastructure at pace. That can be a catalyst for industry renewal, if a committed government shows the drive and imagination to make it so. New public procurement rules, for example, could ensure the use of clean British steel in the manufacture of wind turbines, rather than reliance on imports from abroad.” https://www.theguardian.com/commentisfree/2023/oct/24/the-guardian-view-on-labour-and-the-steel-industry-how-to-forge-a-better-future?CMP=Share_iOSApp_Other

Nothing is straight forward. To add to this story, it seems that switching to electric furnaces has to further knock on effects. First the furnace needs fewer people to operate it, so the switch comes with redundancies. We should be aspiring to a just transition to net zero which means we should be looking to create jobs for those facing redundancy. This could involve reskilling people for work in the green sector eg building and installing wind turbines, heat pumps, solar panels, etc. Second – and which is a positive really – electric furnaces don’t produce steel from iron ore but by recycling steel and iron.

Financing climate action – terminology and acronyms

13th July 2023

Exploring (and hopefully understanding) the terminology and acronyms of the investment world used in and around the issue of climate change. Many of the changes we are going to need to both reduce and to live with, the impacts of climate change require considerable sums of money. If that money doesn’t come through government from taxation, it has to come from the financial markets.

“Climate change is having an ever-increasing impact on global capital markets. It presents a wide and complex range of risks from physical impacts such as flooded factories, to regulation risk such as the imposition of expected carbon taxes, litigation risk and transition risk as company cash flows and profits are affected by the move to a low-carbon economy. There is also mounting evidence that companies who care about their broader eco-systems, tend to financially outperform those who do not. ” https://www.transitionpathwayinitiative.org/investors

IPCC – Intergovernmental Panel on Climate Change, organised by the United Nations. The UN currently has a membership of 193 nations.

COP – conference of the parties being “the supreme governing body of an international convention (treaty, written agreement between actors in international law). It is composed of representatives of the member states of the convention and accredited observers. Scope of the COP is to review the “implementation of the Convention and any other legal instruments that the COP adopts and take decisions necessary to promote the effective implementation of the Convention” https://en.wikipedia.org/wiki/Conference_of_the_parties

The 28th United Nations Climate Change Conference will take place in Dubai in November this year and is commonly referred to as COP28. Other COPs also take place such as the 15th United Nations Biodiversity Conference which met in Montreal in December 2022.

Paris Agreement (sometimes referred to as the Paris Accords) – “an international treaty on climate change. Adopted in 2015, the agreement covers climate change mitigation, adaptation, and finance. The Paris Agreement was negotiated by 196 parties at the 2015 United Nations Climate Change Conference in Paris. The Paris Agreement’s long-term temperature goal is to keep the rise in mean global temperature to well below 2 °C above pre-industrial levels, and preferably limit the increase to 1.5 °C, recognising that this would substantially reduce the effects of climate change. Emissions should be reduced as soon as possible and reach net-zero by the middle of the 21st century. To stay below 1.5 °C of global warming, emissions need to be cut by roughly 50% by 2030. This is an aggregate of each country’s nationally determined contributions.” https://en.wikipedia.org/wiki/Paris_Agreement

Net zero targets – a zero target would reduce carbon/ greenhouse gas emissions to absolute zero. Net zero would reduce emission on balance to zero – ie remaining emissions that could not be avoided being offset by processes that absorb unwanted emissions. If the desired effect of curtailing global warming is be achieved, these offset amounts need to be minimal.

Offsetting – a process whereby one invests in a project that will remove greenhouse gas emissions from the atmosphere and absorb them in such a way that they are not re-released. This removal might be achieved through planting trees which over their life time will absorb CO2 (the main greenhouse gas) from the atmosphere via their leaves and ‘lock’ them away in the trunk, roots and branches of the tree. It might equally be achieved by growing other plants including seaweeds. Greenhouse gases can also be ‘locked’ into the soil by developing peat bogs, by creating grasslands (that will not be tilled as this will release the gases from the soil) or by pursuing regenerative methods of farming. Some offsetting projects don’t plant new forests but rather concentrate on maintaining existing forests where trees will not be routinely cut for timber. This may particularly apply in regions of virgin rainforest where the investment can be an alternative income to that obtained from clearing the forest for agriculture. The idea behind offsetting is that where emissions from an operation cannot be reduced to zero, that the residual amount of produced by the operator is offset by an equivalent re- capturing of gases. To be of value, carbon offsetting schemes need to be scientifically proven to be effective, and to be certified so that the offsetting cannot be resold. Offsetting should always be a last resort.

Climate Transition Plan – an action plan that outlines how an organisation will develop or change its use of assets and resources, and its entire business plan to meet agreed climate targets – typically halving greenhouse gas emissions by 2030 and reducing them to net zero by 2050. In November 2021 the UK Government set up a Transition Plan Taskforce (TPT). As of 2023 listed UK companies are required to publish transition plans with guidance from the TPT using rules agreed with the Financial Conduct Authority (FCA) – although apparently it doesn’t have to have net zero as its target.

Just Transition – “ A ‘just transition’ means moving to a more sustainable economy in a way that’s fair to everyone – including people working in polluting industries.“ Greenpeace. In the financial world the Impact Investment Institute this year produced a set of Just Transition Criteria to enable investors make better judged investments that will fulfil the objectives of a just transition – https://www.impactinvest.org.uk/wp-content/uploads/2023/05/Just-Transition-Criteria.pdf (This pdf is an interesting read)

IEA – International Energy Agency is an “autonomous intergovernmental organisation, established in 1974, that provides policy recommendations, analysis and data on the entire global energy sector. The 31 member countries and 13association countries of the IEA represent 75% of global energy demand. The IEA was set up under the framework of the Organisation for Economic Co-operation and Development (OECD) in the aftermath of the 1973 oil crisis to respond to physical disruptions in global oil supplies, provide data and statistics about the global oil market and energy sector, promote energy savings and conservation, and establish international technical collaboration on innovation and research. Since its founding, the IEA has also coordinated use of the oil reserves that its members are required to hold.” https://en.wikipedia.org/wiki/International_Energy_Agency. In May 2019 the IEA reported that investors should not fund new oil, gas and coal supply projects if the world wants to reach net zero emissions by mid-century – “The pathway to net zero is narrow but still achievable. If we want to reach net zero by 2050 we do not need any more investments in new oil, gas and coal projects,” said Fatih Birol, the IEA’s executive director. “It is up to investors to chose whatever portfolio they prefer but there are risks and rewards.”

Transition Pathway Initiative (TPI) – supported by research from the LSE and the Grantham Research Institute, this scheme assesses the performance of major companies using publicly available data so as to rate the companies on their Management Quality (ie how well their business plans relate to measuring and controlling their greenhouse gas emissions) and Carbon Performance (how well their business plans align with the UN Paris Agreement goals). This information is then made available to anyone who is interested and in particular to investors who want to ensure that the companies they invest in are transitioning appropriately to net zero. https://www.transitionpathwayinitiative.org/

NIBs – National Investment Bodies – the Church of England has three such bodies comprising:-

Church of England Pensions Board – “We provide retirement housing and pensions, set by the Church of England, for those who serve or work for the Church. We assist over 42,000 people across almost 700 employers with their pensions, carefully stewarding the funds under our care of around £3.2 billion.

Church Commissioners for England – “ The Church Commissioners manages a £10.3bn investment fund. The money it makes from those investments contributes to the cost of mission projects, dioceses in low-income areas, bishops, cathedrals, and pensions. The Church Commissioners also provides administrative support for the Church. We contribute about £1.2bn every three years to various parts of the Church of England, around 20% of the Church’s annual running costs, which makes us one of the largest charitable givers in the UK.”

CBF funds which are managed by CCLA (Churches, Charities and Local Authorities (CCLA) Investment Management Limited). These are the fund managers who look after most parish investment monies.

Ethical Investment Advice Group – this is a Church of England group that provides ethical investment advice for the Church (and others who wish to access their web site where their thoughts are given in detail including theological reflection – https://www.churchofengland.org/about/leadership-and-governance/ethical-investment-advisory-group

Fiduciary Duty – A fiduciary is someone who has undertaken to act for and on behalf of another in a particular matter in circumstances which give rise to a relationship of trust and confidence — Lord Millett, Bristol and West Building Society v Mothew A fiduciary duty in terms of finance sense exist to ensure that those who manage other people’s money act in their beneficiaries’ interests, rather than serving their own interests. (https://en.wikipedia.org/wiki/Fiduciary) For example, money given by its congregations and other donors must be managed for the benefit of the Church of England, and within that for example, many given to the Pensions Investment Board must be managed to benefit present and future C of E pensioners.

TCFD – Task Force on Climate-related Financial Disclosures: when buying and selling investments one needs accurate information that enable you to assess the risk of making or loosing money. A new risk is that of climate change, and investors need accurate and standardised information so that they can fairly value what they are buying and selling. Ensuring such information is forthcoming – is disclosed – is the function of the TCFD. https://www.fsb-tcfd.org/about/

Climate Action 100+ is a group of 700 global investors – including the Church of England Pensions Board – who undertake to to engage with the major companies* that will play a significant role in the transition to a net-zero emissions economy. Individual or small groups of these investors engage with a particularly company to monitor performance, and develop and implement company specific strategies that will ensure they meet the necessary targets on the route to net zero. https://www.climateaction100.org/about/

(* eg ArcelorMittal S.A. (steel), BP, E.On, Carrefour, National Grid, Honda Motors, Nestle, Quanta’s airlines etc)

Paris Aligned Investment Initiative -“ Paris Aligned Asset Owners are a global group of 56 asset owners, with over $3.3 trillion in assets. They have committed to transitioning their investments to achieve net zero portfolio GHG emissions by 2050, or sooner, drawing on the Net Zero Investment Framework to deliver these commitments”. The Church of England Pensions Board is a member of this group. https://www.parisalignedassetowners.org/ The Initiative is delivered by four investor networks covering the different regions of the globe. The network for Europe is The Institutional Investors Group on Climate Change (IIGCC).

Net Zero Investment Framework – The Net Zero Investment Framework, published in March 2021, provides a common set of recommended actions, metrics and methodologies through which investors can maximise their contribution to achieving global net zero global emissions by 2050 or sooner. Its primary objective is to ensure investors can decarbonise investment portfolios and increase investment in climate solutions, in a way that is consistent with a 1.5°C net zero emissions future.

Net Zero Asset Owners Alliance – “Convened by the UN, the Net-Zero Asset Owner Alliance seeks to transform member investment portfolios to net zero GHG emissions by 2050. 29 institutional investors make up the alliance, representing over $5 trillion in assets. The alliance also works with other finance-related climate initiatives, such as Climate Action 100+ and The Investor Agenda.” https://netzeroclimate.org/net_zero_tools/net_zero_asset_owner_alliance/ All three Church of England Investment Bodies are part of this alliance.

Net Zero Climate – an Oxford University based which “brings together principles and policies, practical tools, and progress tracking to help businesses and policymakers achieve that [net zero emissions] goal.” https://netzeroclimate.org/ As well as hosting the Net Zero Asset Owners alliance, they provide tools for organisations including ‘How to set a net zero target’ :

1. Pledge at the head-of-organization level to reach net zero GHGs as soon as possible, and by mid-century at the latest, in line with global efforts to limit warming to 1.5C. Recognise that this requires phasing out all unabated fossil fuels as part of the transition.

Set an interim target to achieve in the next decade, which reflects maximum effort toward or beyond a fair share of the 50% global reduction in CO2 by 2030.

Targets must cover all GHGs, including Scopes 1, 2, and 3 for businesses and other organisations, all territorial emissions for cities and regions, all portfolio/financed/facilitated/insured emissions for financial entities, and all land-based emissions.

2. Plan Within 12 months of joining, publicly disclose a Transition Plan, City/Region Plan, or equivalent which outlines how all other Race to Zero criteria will be met

Include what actions will be taken within the next 12 months, within 2-3 years, and by 2030.

3. Proceed Take immediate action through all available pathways toward achieving net zero, consistent with delivering interim targets specified.

Where relevant, contribute to sectoral breakthroughs.

4. Publish Report publicly both progress against interim and long-term targets, as well as the actions being taken, at least annually.

Report in a standardised, open format, and via platforms that feed into the UNFCCC Global Climate Action Portal.

5. Persuade Within 12 months of joining, align external policy and engagement, including membership in associations, to the goal of halving emissions by 2030 and reaching global net zero by 2050.

Net Zero Engagement Initiative – launched by this Initiative expands the number of companies with whom investors are actively engaging vis a vis net zero targets beyond the Climate Action 100+ list. This should enable mot investors to develop portfolios where an even greater number of the companies they invest in, are aligned with the Paris Agreement. For more details visit their website – https://www.iigcc.org/resource/net-zero-engagement-initiative/

Net Zero Standard for Oil and Gas – Convened by members of IIGCC and informed by the Transition Pathway Initiative (TPI), this standard “sets minimum expectations for what must be included in net zero transition plans from oil and gas companies, to create a level playing field in corporate reporting and meet investor expectations for credible and comparable company net zero transition plans.” https://www.iigcc.org/resource/net-zero-standard-for-oil-and-gas-companies/

The standard notes “time is very much against all of us and we need to accelerate the pace and scale of commitments… These calls to action from industry groups and scientists alike, must translate into real, drastic, and immediate emissions reductions in all sectors. Emissions reductions across the board means significant fossil fuel demand destruction… Therefore it is essential that oil and gas company boards know that those with credible independently verified net zero* strategies will be supported by their investors. Equally important sis that this without will be challenged.” *Further on the standard specifies that these net zero strategies should include scope 3 emissions as well as scopes 1 and 2.

https://www.iigcc.org/download/iigcc-net-zero-standard-for-oil-and-gas/?wpdmdl=4866&refresh=64b01d6965f071689263465