CPC2020: Clean and green trade: turbocharging UK global leadership on trade and climate - a podcast by Conservative Environment Network

Panel: Sam Hall (CEN Director, Chair), Michael Liebreich (Chairman and CEO, Liebreich Associates), Barney Wharton (Director, Future Electricity Systems, RenewableUK) & Louise Burrows (Policy Advisor, E3G)

With closing remarks from Philip Dunne MP (Chair of the Environmental Audit Committee, CEN).

The UK has a significant opportunity to lead the way in clean, free trade and increase international ambition on climate by reforming UK Export Finance (UKEF), the UK’s export credit agency, an agency dedicated to supporting British business abroad. Despite our net zero emissions target, 97% of UKEF’s energy support in recent years has gone to fossil fuel projects, with only around 3% going to renewable energy. What reforms are needed to align our trade policy with our climate goals and shift export financing away from fossil fuels to clean energy?

The Government has already begun to reform UKEF. During the Budget, the Chancellor gave UKEF an additional £2 billion to support British business in creating clean energy projects abroad. Recently the Prime Minister announced a review into export finance and it has been reported the government is on the verge of agreeing to end support for fossil fuels via UKEF. This would put the UK in a world-leading position on the issue of phasing out public finance for fossil fuels overseas.

Fossil fuel projects risk undermining the UK’s climate diplomacy, and tying developing countries into expensive fossil fuel dependency as solar and wind costs fall dramatically. A reformed policy would not only demonstrate the UK’s climate leadership, but also create a jobs dividend for the UK’s low-carbon economy, growing trade flows, and leveraging the UK’s climate ambition to drive action globally.

As host of the UN Climate Conference, COP26, in Glasgow and the G7 Presidency in 2021, how can the UK leverage its reforms of UKEF to encourage other export credit agencies to follow suit? To maximise the benefits for the government’s levelling up agenda, what other support does the UK clean energy supply chain need to grow and export more around the world?

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