Recommendation 64

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