Recommendation 21

In response to the COVID-19 pandemic it has also expanded the scope of its Export Insurance Policy to a wider number of markets, with the aim of protecting UK exporters from the risk of non-payment should UK exporters’ customers become insolvent or their government actions make fulfilling the contract impossible.48 It also told us that it is being proactive in engaging with the renewable energy sector and has recently financed projects in Taiwan, Ghana and Spain. However, UKEF told us that its work is largely reactive and sector-agnostic, responding to demand in the market. Consequently, the lack 40 Federation of Small Businesses, 11 September 2020, paras 17, 18 41 Q 17 42 C&AG’s Report, paras 21, 3.9, 43 Pact, written evidence, September 2020, overview 44 Q 73 45 Q 75 46 Q 59 47 Qq 58, 72 48 Q 72 Government support for UK exporters 15 of a domestic supply chain in the UK in these sectors was identified as a constraint.49 The Environmental Audit Committee also noted that UKEF has been criticised for the ‘proportion of its support for the energy sector which goes to fossil fuel projects’.50 Accessing export finance outside of the five largest banks