He reports that a study by parliament’s international development committee, chaired by MP Stephen Twigg (left), concluded that the government needed more joined-up thinking when it came to climate change policy: “MPs have lambasted an “incoherent” aid policy in which Britain allocates billions to tackling climate change abroad while spending the same amount supporting fossil fuel projects”.
UKEF allocates billions to tackling climate change abroad but gives the same amount to fossil fuel projects.
Evidence had been presented that between 2010 and 2016 UK Export Finance (UKEF), which supports trade abroad, spent £4.8 billion on schemes that contributed to carbon emissions. These included financing for offshore oil and gas extraction in Ghana, Colombia and Brazil. A sum, almost identical to the £4.9 billion, was spent by different agencies from 2011-17 on supporting projects to tackle climate change in developing countries.
The committee said: “The only context in which it is acceptable for UK aid to be spent on fossil fuels is if this spend is ultimately in support of a transition away from fossil fuels and as part of a strategy to pursue net zero global emissions by 2050 . . . Currently, the support provided to the fossil fuel economy in developing countries by UK Export Finance is damaging the coherence of the government’s approach to combating climate change and this needs to be urgently rectified.”
UKEF, the much-criticised and renamed Export Credits Guarantee Department, is the UK’s export credit agency which underwrites loans and insurance for risky export deals as part of efforts to boost international trade.
The committee also found that other wings of the UK overseas development sector, including groups such as the Prosperity Fund, which supports economic growth, were backing carbon-intensive projects.
In October one such proposal was announced: the financing of an expansion of an oil refinery in Bahrain which would allow its total output to increase up to a maximum of 380,000 barrels per day
“Given the urgency and scale of the challenge, spending climate finance has to be more than a box-ticking exercise to meet a commitment,” the committee wrote. “Climate finance must be spent strategically, it needs to be spent with urgency and it has to be transformative.”
Representatives from the Grantham Research Institute (LSE) (a site well worth visiting) gave evidence to the committee. They were critical of the latest economic strategy from DFiD in which, they pointed out, climate change “only receives a brief mention under the sector priorities of ‘agriculture’ and ‘infrastructure, energy and urban development’, while ‘extractive industries’ including oil, gas and mining are highlighted as a priority sector for support with no mention of climate change considerations”.
Mr Twigg said that the UK policy of reaching “net zero emissions” should extend to the government’s work abroad, as well as at home. “It is welcome that in recent weeks climate change has taken its rightful place at the top of the news agenda,” he said. “The scale and seriousness of the challenge to be confronted must be reinforced and reflected upon daily if we are to take meaningful steps to combat it.
Rory Stewart, the international development secretary (left), said that the report “makes for sobering reading . . . Although we have done much already to tackle climate change, I feel strongly we can do more. I am going to make tackling climate change increasingly central to DFID’s work. As international development secretary I want to put climate and the environment at the heart of what this government does to protect our planet for future generations. As climate extremes worsen it is the world’s poorest countries and communities which will be most affected, but this is a global issue.”
Adam McGibbon, Climate Change Campaigner at Global Witness, said: “As the world reels from the news that we have twelve years to prevent catastrophic climate breakdown, today’s announcement by the government is staggering. The UK claims to be a climate leader, but it continues to spend billions pumping fossil fuels out of the ground abroad.
And in the Western Daily Press, 6 May 2019, Paul Halas from Stroud describes government policy-making as being, “hobbled by its vested interests and metaphorical flat-Earthers”. He ended:
“In times of war, research, development and manufacture increase exponentially. What faces us now is no less than a war against Climate Change, which will take an unprecedented effort and unanimity of purpose to win. It’s not one we can afford to lose”.