Source · Select Committees · International Development Committee
Recommendation 67
67
Contributors told us that despite the official “arms-length” relationship between the Government and CDC, the...
Conclusion
Contributors told us that despite the official “arms-length” relationship between the Government and CDC, the Government had ample scope to influence the latter’s operations and decisions as its sole shareholder.145 NGOs are seeking greater Government influence on CDC’s operations to reduce the scope for funding fossil fuel energy sector abroad. In the words of the Environmental Rights Action/Friends of the Earth Nigeria: The undue influence of the CDC over government policies means they will continue to enjoy stupendous patronage from government spending to continue fossil fuel infrastructure financing.146 UK’s response—fossil fuel policy
Government Response
Not Addressed
HM Government
Not Addressed
At COP26, the UK launched the Energy Transition Council, with over 20 governments and over 15 international institutions participating, to support countries’ transitions to clean power. The Council’s Rapid Response Facility is mobilising technical assistance for 20 countries. The UK’s COP Presidency energy transition campaign has focused on accelerating the global transition from coal to clean power by: • Growing the coalition of countries, sub-national governments and businesses committed to phasing out unabated coal power, building on the Powering Past Coal Alliance; • Ending international coal finance, with recent commitments from the G20, including South Korea, Japan, and China; • Strengthening the international offer of finance and assistance for clean power so that it is the most attractive option for new power generation; • Establishing a new financial framework to accelerate the just transition from coal in major coal economies like South Africa and India; • Driving ambition on product energy efficiency standards by doubling the efficiency of four key products sold globally by 2030. This will also help to meet Sustainable Development Goal 7 to ‘ensure access to affordable, reliable and modern energy for all by 2030’. The UK Government no longer supports the extraction, production, transportation and refining of crude oil, natural gas, or thermal coal overseas, with very limited exemptions to the policy that will be granted only in limited circumstances. The exemptions are applicable to a small number of situations and are necessary to make this policy work in the real world and allow an orderly transition away from fossil fuels. They reflect the current state of renewable technologies and markets, ensure that neither taxpayers nor developing countries are disadvantaged and, most importantly, are in line with achieving the Paris temperature goals and Nationally Determined Contributions (NDC). Projects are considered on a case-by-case basis, with the exemptions being monitored by an internal cross Whitehall governance group to ensure compliance and relevance with the UK’s fossil fuel policy.