Thank you for contacting me about the UK’s export credit agency, UK Export Finance (UKEF).
The central mission of UKEF is to make sure that no viable UK export fails due to lack of finance or insurance, while operating at no net cost to the taxpayer.
Both I and the Government are strongly committed to supporting the transition to a low carbon economy. UK companies have an important role to play in the transition away from fossil fuels, and UKEF will remain responsive to the evolving export financing needs of UK companies during this transition. It is welcome that the 2020 Budget provided UKEF with a new £2 billion lending facility for projects supporting clean growth.
I want to reassure you that UKEF is committed to high standards of environmental, social and human rights (ESHR) risk management. It complies with the requirements of the OECD Common Approaches and Equator Principles, which establish the risk management framework for credit agencies and international finance institutions.
Furthermore, UKEF has a specialist ESHR team which reviews and undertakes due diligence on relevant projects before key decisions are taken. Projects supported by UKEF are then monitored throughout the lifetime of that support, and this ensures compliance with, for example, international environmental and social standards.
UKEF’s Environmental and Social Risk Management Team also has access to a panel of independent environmental consultancies to supplement its advice as and when necessary.
I want to reassure you that tackling climate change and supporting the transition away from dependence on high greenhouse gas emitting energy sources is a priority for the Government and, more broadly, I fully support the Government’s commitment to achieving net zero carbon emissions by 2050.
Thank you again for taking the time to contact me.
Sally-Ann Hart MP