MPs urge pension schemes to cushion economic effects of UK’s net zero plan

Cross-party group says regions could be devastated by a rapid switch to low-carbon technologies

UK public sector pension schemes could deepen divisions in society unless they use their billions of pounds of investment to cushion communities pivoting away from carbon-intensive industries such as steel and carmaking, MPs have said.

The cross-party group argues towns and regions across Britain could be devastated by a rapid switch to low-carbon technologies, leaving them to face the same future as mining towns hit by pit closures in the 1980s, unless pension funds take account of the impact of investments on vulnerable households and businesses.