Ahead of COP26, UK Export Finance announces plans to decarbonise its financial portfolio and increase its support for green exports to achieve net zero emissions by 2050.
UKEF’s new Climate Change Strategy requires the organisation to increase its support for clean growth, renewables, and climate adaptation exports.
The strategy will contribute to the UK’s overall goal of minimising the effects of climate change on our planet and preventing global temperatures from rising above 1.5C
UKEF currently provide £50 billion to support UK exports through loans, insurance and guarantees. This capacity will be entirely carbon neutral by 2050 so financial institutions can play the vital role needed to meet global net zero commitments.
UKEF’s strategy aims to end its contribution to climate change by improving understanding and mitigation of its climate-related financial risks, reporting against climate-related commitments, and encouraging others to follow UKEF’s ambitious climate targets.
The organisation is setting realistic interim milestones to ensure climate targets are met. In 2025, UKEF will publish another strategy to detail its progress towards achieving carbon neutrality.
Anne-Marie Trevelyan, International Trade Secretary, said: “This plan is among the most ambitious of any Export Credit Agency worldwide. It puts UK Export Finance squarely in support of green exports to tackle climate change, level up the country and help us recover from the pandemic.”
“UKEF’s net zero pledge shows the UK’s climate leadership and is an encouragement for other countries to follow suit. Its world-leading financial products help British businesses capture billions of pounds worth of foreign deals, boost green exports and give hope that temperatures can be kept in check.”
Dr Nina Skorupska CBE, CEO of the Association for Renewable Energy & Clean Technology (REA) said: “The REA are very pleased to see the government take a sustainability-first approach to global trade deals and emphasise the opportunities to the UK from green economy exports.”