Following consultation on aligning UK international support for
the clean energy transition, the government will no longer
provide support for the fossil fuel energy sector overseas from
31 March 2021. This will include UK Export Finance support,
international aid funding, and trade promotion for new crude oil,
natural gas and thermal coal projects.
To support the UK’s energy sector in making this transition, we
will provide:
- a 1 year exemption for small and medium sized-enterprises, to
ensure the most vulnerable firms are given time to adjust
- a new ‘Transition Export Development Guarantee’, so that oil
and gas focused companies with credible transition plans can
benefit from UK Export Finance’s working capital support to
achieve these plans
- publish a comprehensive and transparent description of the
exemptions underpinning the policy shift, to provide clarity and
certainty for business and civil society
This balanced approach will make the UK an even stronger and more
credible international partner to the growing number of countries
who are seeking to make the transition to a cleaner future. The
UK will build on the implementation of the policy shift by
working with like minded partners to make similar commitments,
including through our G7 and COP26
Presidencies.
Download the full outcome
Aligning UK international
support for the clean energy transition: government
response
PDF, 347KB,
31 pages
Aligning UK international
support for the clean energy transition: detail of new
policy
PDF, 245KB,
16 pages
Detail of feedback received
The government received 42,895 written responses, the majority
from individuals as part of civil society campaigns.
38 industry responses were received from representative bodies,
oil and gas majors, businesses in the supply chain and
SMEs. 53
civil society responses were received from organisations based in
the UK and around the world. In addition, roundtables were held
with representatives of the oil and gas industry, and civil
society representatives from the UK, Europe and developing
countries.
The government thanks respondents for the feedback and evidence
provided in response to this consultation. We welcome the broad
support for the energy transition and note the commitment of all
respondents to making it a success for the UK. We have considered
the evidence provided carefully both in relation to the actions
required to support an accelerated growth in UK clean energy
exports, and on the optimum timing and associated support for
making the policy shift.
Original consultation
Summary
We're seeking views on further enabling UK clean energy exports
and timing of implementation of policy shift in UK international
fossil fuel energy sector support.
This consultation ran from 12 December 2020 to 8 February 2021.
Consultation description
At the Climate Ambition Summit on 12 December 2020, the Prime
Minister announced that the UK will no longer provide any new
direct financial or promotional support for the fossil fuel
energy sector overseas, other than in exceptional circumstances,
as soon as possible, and align its support to enable clean energy
exports.
This consultation seeks views on how to further enable an
accelerated growth in UK clean energy exports, and on the impacts
of the timing of implementation of the policy shift on
international fossil fuel energy sector support.
Documents
Aligning UK international
support for the clean energy transition
PDF, 231KB,
18 pages
