Select committee: International Development Committee
Conclusion 64
Second Report - Global Britain in demand: UK climate action and international development around COP26
Published 26 Oct 2021
Addressed to Foreign, Commonwealth & Development Office
International Development Committee Climate change, development and COP26 All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Conclusion (the committee's words)
In March 2021, the Government introduced its new fossil fuel policy, which mirrors that of its development finance institution, the CDC Group (CDC). Both ban new, direct financial or promotional support for the fossil fuel energy sector137 abroad except for special, albeit controversial circumstances.138 The Government’s exemptions include:139 • Support for stand-alone generators and Liquid Petroleum Gas for cooking and heating • Stand-alone diesel or gas generators if they are the “only means of providing power in areas where no mains grid connection is available or where grid power is unreliable, especially in humanitarian contexts” • Gas-fired power generation if: Ȥ the host country has a credible nationally determined contribution (NDC) and a long-term pathway to achieving net zero by 2050 in line with the Paris Agreement; Ȥ UK support does not “delay or diminish” transition to renewable energy; Ȥ the project “intends to follow best practice in environmental and social standards”; Ȥ If these cannot be demonstrated: If they are a source of “domestic energy security” and there are no viable alternatives in the form of renewable energy. 135 Q16 [Diann Black-Layne] 136 UN News, IPCC report: ‘Code red’ for human driven global heating, warns UN chief, 9 August 2021 137 The fossil fuel energy sector overseas is defined as “the extraction, production, transportation, refining and marketing of crude oil, natural gas or thermal coal, as well as any fossil-fuel fired power plants.”. See: Gov.uk, Aligning UK international support for the clean energy transition, p.4, 31 March 2021 138 CDC Group, Our fossil fuel policy, pp. 4–5, 12 December 2020; Gov.uk, Aligning UK international support for the clean energy transition, pp. 6–7, 31 March 2021 139 Gov.uk, Aligning UK international support for the clean energy transition, pp. 6–7, 31 March 2021 Global Britain in demand: UK climate action and international development around COP26 25
From: International Development Committee, Second Report - Global Britain in demand: UK climate action and international development around COP26 (HC 99), 26 October 2021
Government response
The government responded to the whole report on 14 January 2022 (deadline 26 December 2021).
Summary written by Accountability Index from the government's response. It is not the government's own words.The government's response to the Committee's report is mostly 'Partially agree', with 'Agree' on two recommendations, while declining the Committee's 31 January 2022 deadline for a locally-led adaptation pathway.
- On locally-led adaptation, it says it "agree[s] that locally led adaptation is critical" but is "not able to agree" to submit a pathway by 31 January 2022, citing the need to work with others, in particular Egypt as incoming COP27 Presidency. It "will report on progress by 31 March".
- On climate finance access, it agrees and says it is working to update the International Climate Finance Strategy and "aim to publish this by April 2022". It is not "proposing a simplification of the criteria for LDCs and SIDS per se", but a streamlined accreditation approach.
- On fossil fuel exemptions, it partially agrees, stating the exemptions are for "a small number of situations" and are "necessary to make this policy work in the real world". BII is developing a carbon budget and "will share this information with the Committee in due course".
- On a Climate and Development Minister, it partially agrees, stating there is "already strong ministerial oversight for this policy area", with Lord Goldsmith holding responsibility for climate and environment.