UK sends major signal ahead of COP26 with greening of UK Export Finance

Reacting to the Government’s announcement on ending fossil fuel support overseas through UK export finance, aid funding and trade promotion, Nick Molho, Executive Director at the Aldersgate Group, said: “We warmly welcome the Prime Minister’s commitment ahead of the Climate Ambition Summit to end support for fossil fuel sectors overseas and shift to financing low carbon energy projects. In doing so, the UK has sent a clear signal to the wider investment market about the importance of aligning financial flows with climate objectives and has put in place the right conditions to have the world’s greenest export credit agency ahead of its COP26 presidency. In order to prevent major stranded asset projects, we urge the government to implement this change as soon as possible, with all future projects in line with the goals of the Paris Agreement. Government should build on today’s announcement by ensuring that environmental and climate objectives are placed at the centre of our future trade policy, with robust scrutiny measures inserted into the Trade Bill currently passing through Parliament.” [1]