On 3 March 2021, HM Treasury published a letter from Rishi Sunak MP, Chancellor of the Exchequer, to Andrew Bailey, Governor of the Bank of England concerning the remit and recommendations for the Financial Policy Committee (FPC). Among other things the letter notes that in line with the FPC’s responsibility to monitor systemic risks it should continue to regard risks from climate change as relevant to its primary objective. The letter notes that climate change poses risks to the stability of the UK financial system, including physical risks, which arise from the increased frequency and severity of climate and weather-related events, and transition risks, resulting from a sudden or disorderly transition towards a net zero economy. Subject to market conditions, the UK will issue its first ever Sovereign Green Bond this year, helping to fund projects to tackle climate change, finance much-needed infrastructure investment, and create green jobs across this country.