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Fossils Financing Filthy Fuel: UK Breaks Its Green Pledge
A study of loans provided by the UK Export Finance (UKEF) agency revealed that the British government provided about 1.7 billion pounds ($2.6 billion) in loans to fossil fuel projects abroad in the quadrennial period.
The UKEF funding reneges on the 2010 coalition pledge agreed between the Conservative Party and the Liberal Democrats to cut down overseas fossil fuel subsidies.
The wording of this agreement reads, “We will ensure that UK Trade and Investment and the Export Credits Guarantee Department [UKEF is its operating name] become champions for British companies that develop and export innovative green technologies around the world, instead of supporting investment in dirty fossil-fuel energy production.”
Just after taking office, prime minister David Cameron promised he would lead the “greenest government ever”. UKEF reports to business secretary Vince Cable.
UKEF determines projects to finance. UKEF sets out guarantees and insurance enabling UK exporters of goods and services to operate overseas.
Nonprofit organisations sharply rounded on the government’s decision to select “dirty fossil fuel energy production” over green technologies
Greenpeace’s Energydesk website conducted the investigation into UKEF’s loans.
The government offered loans to a number of fossil projects including oil and gas exploration, coal mining and petrochemicals. Russia, Brazil, India, Saudi Arabia and Vietnam were the strongest beneficiaries.
According to the report Russia’s Gazprom, the Sadara Chemical Company of Saudi Arabia and Brazil’s oil producer Petrobas were beneficiaries. Sadara received a £447 million loan. This was the largest loan.
Speaking of the loan, UKEF says it was “the largest it has ever supported on a limited recourse project financing basis”.
Will McCallum is policy adviser at Greenpeace UK.
He said: “The loophole allowing UK Export Finance to continue funding highly polluting infrastructure, and the extraction of fuels we urgently need to leave in the ground, is one that must be closed if the government is to honour its international commitment to a 2C limit [in temperature rises].
“[Energy and climate secretary] Ed Davey’s efforts to eliminate overseas funding for coal power generation are very welcome, but the UK could do a lot more to push for a binding commitment from the OECD to phase out funding for all high carbon projects. Nothing would send that message more strongly than limiting the UK’s export finance for these schemes.”
http://www.theguardian.com/environment/2015/jan/06/uk-loaned-17bn-to-foreign-fossil-fuel-projects-despite-pledge
http://sputniknews.com/europe/20150106/1016560723.html
http://i.telegraph.co.uk/multimedia/archive/02700/GRANGEMOUTH_2700282b.jpg
http://upload.wikimedia.org/wikipedia/commons/9/97/Palace_of_Westminster,_London_-_Feb_2007.jpg