Aligning UK international support for the clean energy transition
Read the full outcome
Detail of outcome
Following the consultation, 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.
Further details on how the policy will be implemented
The government published details on how it will implement this policy on 31 March 2021.
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
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.
See the BEIS consultation privacy notice.
Documents
Updates to this page
Last updated 31 March 2021 + show all updates
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Document added that sets out the detail of the new policy on UK government support for the fossil fuel energy sector overseas, effective from 31 March 2021.
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Government response published.
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First published.