All UK-listed companies will have to plan to cut emissions or face fines.
The plans, to be unveiled by the chancellor today, aim to make the UK the first carbon-neutral financial centre, with firms, investors and banks required to detail how they will move towards becoming net zero by 2050.
Rishi Sunak is expected to say that the proposals will “rewire” the economy towards reducing global warming.
Companies will have to report to a task force, under the control of the Financial Conduct Authority, to stop firms “greenwashing” and making pledges that cannot be verified.
Under the new financial net zero reporting scheme all companies will be required by 2023 to set out detailed public plans to reduce their reliance on fossil fuels, with milestones to reach net zero by 2050.
But critics have said the plans are “toothless”, despite the fines. Treasury sources said the new powers would be used to cajole companies into taking action rather than adopting a heavy-handed approach. They added that the government did not want companies moving out of London to avoid the new rules.
