The Treasury is failing adequately to factor in long-term environmental risks into its decisions.

The Environmental Audit Committee has called for the Treasury to “green-check” all its decisions after a major investigation into its approach found that it puts short term priorities over long term sustainability – potentially increasing costs to the economy in the future, and harming investor confidence.

The Treasury, through its control over government spending, taxation policy and regulation is arguably the most important department for ensuring the UK meets its environmental obligations.