Tag Archives: support

100GW solar support in US-India climate talks, but no emissions cuts Updated for 2026





Hopes that India and the US might announce ambitious plans to co-operate in tackling climate change have proved wide of the mark.

A meeting here between the visiting US president, Barack Obama, and Indian prime minister Narendra Modi, showed India determined to follow an independent line.

One agreement reached was on nuclear power: the two leaders smoothed the way for India to import US technology for any future nuclear plants, under a deal to limit the legal liability of US suppliers in the event of a nuclear power plant catastrophe.

Yes to renewables, no to emissions cuts

Modi and Obama also announced action to advance India’s transition to a low-carbon economy, and India reiterated its goal of increasing its solar target to 100 gigawatts by 2022, which the US said it would support.

Modi went on to urge nations with the greatest solar energy potential to join India in innovation and research to reduce the cost of the technology and make it more accessible.

But on emissions, there was no repeat of the recent agreement between the US and China reached just before the UN climate talks in Lima last December.

“The agreement that has been concluded between the US and China does not impose pressure on us”, said Modi. “India is an independent country. But climate change and global warning itself is huge pressure.”

He offered no indication of a reduction in the use of coal, which currently generates most of India’s power. However Modi did agree to phase out the use of the ‘super-GHG’ hydrofluorocarbon gases used in refrigeration and foam blowing – while insisting that India demands “equal treatment” in cutting GHGs. 

Anu Jogesh, a senior research associate with the Centre for Policy Research’s Climate Initiative, said: “There was a lot of buzz in policy circles and the media that there might be some kind of announcement, not on emission cuts per se but on renewable energy. However, apart from the nuclear agreement, little else has emerged.”

But other analysts argue that there has been little time yet for Modi and Obama to develop a strong working relationship, and that it could be premature to dismiss the outcome of this meeting as disappointing.

What does this presage for Paris 2015?

India’s Ministry of External Affairs said that Modi and Obama had “stressed the importance of working together and with other countries to conclude an ambitious climate agreement in Paris in 2015.” But there was no sign of any advances on key issues.

Before last month’s UN climate talks in Lima, Peru, India said it had put in place several action plans for achieving Intended Nationally Determined Contributions (INDCs), which are key elements of the climate agreement due to be concluded at the next round of talks in Paris in December.

However no details of India’s INDCs emerged during Obama’s visit, as officials continued to maintain that its INDCs will be announced “at an appropriate time with specific contributions.”

Last week Modi hinted at his country’s thinking on climate when he called for a paradigm shift in global attitudes towards climate change – from “carbon credits” towards “green credits”:

“Instead of focusing on emissions and cuts alone, the focus should shift to what we have done for clean energy generation, energy conservation and energy efficiency, and what more can be done in these areas.”

India is the world’s third largest GHG emitter, after China and the US. However it generates only two tonnes of CO2 equivalent per capita, compared with 20 tonnes in the US and eight in China.

 


 

Nivedita Khandekar is a Delhi-based independent journalist who writes on environmental, developmental and climate change issues for Climate News Network and other news media. Email: nivedita_him@rediffmail.com; Twitter: @nivedita_Him .

 

 




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Election 2015: finally, our chance to ditch Trident Updated for 2026





Trident has in the last few weeks become one of the most potent symbolic political markers for the forthcoming election, and is likely to feature heavily in the debates.

Some of us who have been closely involved in the issue for decades may have been taken by surprise … previous promising moments have come and gone with minimal fuss and it has been a challenge not to become cynical.

But this time is different, and there are a number of factors at play, not least the rise of the smaller parties.

Whilst they lost the referendum back in September, the SNP were closer than most were expecting a year ago to successfully breaking up the union. Since then they have experienced a surge of support, are likely to increase their representation in Westminster in May and could well be a crucial dimension in any power arrangement after the election.

They have already highlighted the removal of Trident bases from Scotland as an absolute condition of any support they may give in negotiations. Statements have been uncompromising, so that it will be a big political challenge to row back from them should they come under pressure to change course.

A strong Green challenge could prove decisive

The Green Party, previously hoping to secure 2-3 seats on a very good day, could become serious challengers for more. Perhaps equally importantly, Green candidates up and down the country could capture many left-wing votes from disillusioned left wing voters who see the cautious positioning of Labour with dismay.

Some have even been suggesting that the Greens could do more damage to Labour prospects than the threat UKIP has to the Tories, in a sort of Ralph Nader moment.

They already have more members than UKIP and the LibDems, and could break through 50,000 in the coming few weeks. Of course, it is moments like these, with the Greens punishing the larger parties for their reckless support of unsustainable neo-liberal capitalist solutions, that their influence is strongest.

So far, particularly on the Trident issue, Labour has been captured by the narrative around legacies of lost elections in the dim and distant past. But their paranoia about being seen as a left wing could yet cost them more votes than it secures. It is about time they realized that the public is in a very different place.

When in the 1980s, heavily influenced by the fear-induced Cold War, a strong unilateralist stance may well have lost crucial support in various parts of the country, it is today generally ambivalent towards investment on Trident.

A time of austerity and cuts just when a new generation of submarines demands major investment could yet prove fatal to the project.

Is this a clever way for the UK to spend £4 billion a year?

Much has been made by campaign groups of the £100bn lifetime cost of the system, which is a reasonable estimate given the uncertainties involved in financial forecasting over such a long period.

Perhaps more meaningful, though, is the annual spend … and this will soon be shooting up from around £2.5bn today towards £4bn a year throughout the 2020s, with capital costs consuming a full one third of the whole defence procurement budget across the decade.

In Tuesday’s Commons debate former Lib Dem defence minister Nick Harvey used parliamentary privilege to expose the fact that the army is being asked to come up with plans to make do with manpower levels around 60,000 – a massive cut and one likely to reverberate around the Shires.

This creates unusual allies between anti-nuclear activists and armed forces constituencies.

Cheaper dual-capable nuclear options to Trident that could also plug the armed forces financial gap are now being considered seriously, promising to split the pro-deterrence lobby, enabling some to join the clamour for a reassessment and a less distorted government review later in 2015.

Cold war warmed up?

But remember: Trident is a weapon system dreamt up and developed in a Cold War context. Skirmishes and threats at the margins of Europe aside, no-one seriously considers the prospects of Britain facing an aggressive and totalitarian nuclear superpower alone as significant.

And yet that is the only scenario that could just justify the independent nuclear deterrent that both the Tory-led government and Labour Party are currently committed to hollowing out the armed forces for.

At a time when the future of the Nuclear Non-Proliferation Treaty (NPT) hangs in the balance and states parties meet in New York for their every-five year review (at the same time as the election), Britain’s leadership is critical. And yet we are nowhere, our credibility severely dented by this insistence on wasting billions on our own arsenal.

Nuclear weapon states meet in London in early February to consider their game plan at the conference. The hopes of them pulling any scrawny rabbits out the hat at this final hour seem dim indeed.

Your vote can help rid us of this terrorist monstrosity

Returning to the election, the best we can realistically hope for from Labour is that it retain its commitment to a minimum credible nuclear deterrent – with some ambiguity around the posture and systems this entails, on the basis that Trident must be included in the Defence and Security Review soon after the election.

This will enable smaller parties, notably the SNP and the Greens, to take on a critical role in post election talks and demand a change in policy on Trident.

But what they do before the election matters too: the more they raise Trident in the campaign, the more they reflect public opposition to the spend, and the more influential they are in the result, the stronger their elbow at this crucial point becomes.

Perhaps then we will see a new government pause, order another delay and review, and perhaps we may yet see them move back from committing to a new generation of nuclear weapons before it’s too late and the money is committed.

Voters in Britain have a bigger chance than they have ever before to bring an end to Britain’s addiction to nuclear weapons, and cause an important upset to the global nuclear order.

 


 

Demo: Wrap up Trident – today, midday at the MOD in London.

Paul Ingram has been the Executive Director for the British American Security Information Council (BASIC) since 2007. BASIC works in the US, UK, Europe and the Middle East to promote global nuclear disarmament and a transformation in strategic relationships using a dialogue approach.

He was also until recently a talk show host on state Iranian TV promoting alternative perspectives on strategic matters, and taught British senior civil servants leadership skills.

Previously Paul was a Green Party councillor in Oxford and co-Leader of Oxford City Council (2000-2002) and a member of the Stop the War Coalition Steering Group (2002-2006).

 

 




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UK’s soaraway financial support to foreign fossil fuels Updated for 2026





The UK government financial support to fossil fuel industries abroad has soared to over £1 billion a year under the Coalition, according to an analysis by Greenpeace Energydesk.

The total support for fossil fuel industries amounts to £1.76bn-worth of Export Credit Guarantees between 2010-2014, underwritten by taxpayer’s money.

And of that, almost £1.1bn was handed out in the last financial year, 2013 / 2014, more than ten times up on two years previously.

This is despite PM David Cameron recently publicly decrying fossil fuel subsidies, and the financial backing breaks a promise set out in the coalition government’s manifesto.

David Cameron denounced “economically and environmentally perverse fossil fuel subsidies which distort free markets and rip off taxpayers” at the Ban Ki Moon climate summit in September.

The coalition manifesto stated the new government would use Export Credit Guarantees for “innovative and green technologies, instead of supporting investment in dirty fossil-fuel energy production.”

UKEF’s fossil fuel support hits new heights

UK Export Finance Agency (UKEF) is authorised by the government to decide what to financially back and their main instrument is the Export Credit Guarantee. These are designed to minimise the risk of making deals abroad for UK exporters.

In practice this means UKEF can work with banks to partially underwrite bonds that are a sort of insurance policy on the contract – and expected by the overseas buyer to be provided by the exporter. This supports the deal by releasing the working capital paid by the overseas buyer to the exporter, which can be used instead of placing it with the bank.

UKEF also provides insurance for UK exporters to protect against non-payment or other issues that commercial insurance won’t provide, as well as sometimes lending money to the buyer of the UK export so that they can pay them directly.

In the four years since the coalition government came into power in 2010, UKEF has announced significant support for a range of overseas fossil fuel projects – from backing for coal mining in Russia to oil and gas exploration in Brazil.

Last financial year was a particularly big one in terms of financial backing for fossil fuel projects, with over £380 million going to Brazilian state-controlled energy giant Petrobras – which also happens to be embroiled in an ongoing corruption scandal.

This was as part of a US$1 billion – around £660 million at current rates – line of credit signed with the firm in 2012. The deal involves UK drilling services for oil and gas exploration in Brazil, and presumably offshore exploration, too, since one of the UK firms specialises in subsea engineering.

There was also what UKEF called its “largest limited recourse project financing” that it has ever supported – around £475 million so going to support the build of petrochemical complex in Saudi Arabia by a UK construction firm.

UKEF’s big favourite: Russian coal

Since 2010 there has been six instances of financial support pledged to Russia by UKEF, totalling around £430 million. This includes hefty support for Russian coal projects, financial backing for state-owned gas giant Gazprom to receive engineering equipment from Rolls-Royce Power Engineering, and expertise and software to other fossil fuels projects.

Around £67 million of the UKEF backing for Russian fossil fuel developments has even gone to US-based Joy Mining, which has a manufacturing arm in the UK. The money has supported the export of mining equipment to Siberian Coal & Energy Co (known as SUEK) and Southern Kuzbass Coal Co OAO.

SUEK is the largest coal producing company in Russia and is one of the companies that the UK imports its coal from – roughly 30% of Russian coal imports to the UK. A Greenpeace investigation found the UK spends nearly a billion pounds each year importing coal from Russia.

SUEK’s chairman Andrew Melnichenko has connections to the the UK government, the investigation found. His long-standing advisor George Cardona, is a former special advisor to Geoffrey Howe.

The Energydesk analysis comes after reports that the German government will give financial support for the export of coal-fired power-plants by the country’s manufacturers. Late last year French President Francois Hollande announced that France will stop public export credits for coal projects in developing countries.

A recent report by the Overseas Development Institute (ODI) revealed that the UK was still giving close to £1.2 billion annually to support exploration for oil, coal and gas. That includes both national subsidies (including tax breaks for North Sea oil exploration), and some $663 million (£425m) per year in public finance for overseas exploration including in Siberia in Russia, Brazil, India, and Indonesia.

But as reported in The Ecologist, those figures related to 2012. The new figures for UKEF support for fossil fuels in 2013 / 2014 are certain to push that total to a new record.

 


 

This article was originally published on the Greenpeace Energydesk blog. This version has been edited by The Ecologist.

 




388811

UK’s soaraway financial support to foreign fossil fuels Updated for 2026





The UK government financial support to fossil fuel industries abroad has soared to over £1 billion a year under the Coalition, according to an analysis by Greenpeace Energydesk.

The total support for fossil fuel industries amounts to £1.76bn-worth of Export Credit Guarantees between 2010-2014, underwritten by taxpayer’s money.

And of that, almost £1.1bn was handed out in the last financial year, 2013 / 2014, more than ten times up on two years previously.

This is despite PM David Cameron recently publicly decrying fossil fuel subsidies, and the financial backing breaks a promise set out in the coalition government’s manifesto.

David Cameron denounced “economically and environmentally perverse fossil fuel subsidies which distort free markets and rip off taxpayers” at the Ban Ki Moon climate summit in September.

The coalition manifesto stated the new government would use Export Credit Guarantees for “innovative and green technologies, instead of supporting investment in dirty fossil-fuel energy production.”

UKEF’s fossil fuel support hits new heights

UK Export Finance Agency (UKEF) is authorised by the government to decide what to financially back and their main instrument is the Export Credit Guarantee. These are designed to minimise the risk of making deals abroad for UK exporters.

In practice this means UKEF can work with banks to partially underwrite bonds that are a sort of insurance policy on the contract – and expected by the overseas buyer to be provided by the exporter. This supports the deal by releasing the working capital paid by the overseas buyer to the exporter, which can be used instead of placing it with the bank.

UKEF also provides insurance for UK exporters to protect against non-payment or other issues that commercial insurance won’t provide, as well as sometimes lending money to the buyer of the UK export so that they can pay them directly.

In the four years since the coalition government came into power in 2010, UKEF has announced significant support for a range of overseas fossil fuel projects – from backing for coal mining in Russia to oil and gas exploration in Brazil.

Last financial year was a particularly big one in terms of financial backing for fossil fuel projects, with over £380 million going to Brazilian state-controlled energy giant Petrobras – which also happens to be embroiled in an ongoing corruption scandal.

This was as part of a US$1 billion – around £660 million at current rates – line of credit signed with the firm in 2012. The deal involves UK drilling services for oil and gas exploration in Brazil, and presumably offshore exploration, too, since one of the UK firms specialises in subsea engineering.

There was also what UKEF called its “largest limited recourse project financing” that it has ever supported – around £475 million so going to support the build of petrochemical complex in Saudi Arabia by a UK construction firm.

UKEF’s big favourite: Russian coal

Since 2010 there has been six instances of financial support pledged to Russia by UKEF, totalling around £430 million. This includes hefty support for Russian coal projects, financial backing for state-owned gas giant Gazprom to receive engineering equipment from Rolls-Royce Power Engineering, and expertise and software to other fossil fuels projects.

Around £67 million of the UKEF backing for Russian fossil fuel developments has even gone to US-based Joy Mining, which has a manufacturing arm in the UK. The money has supported the export of mining equipment to Siberian Coal & Energy Co (known as SUEK) and Southern Kuzbass Coal Co OAO.

SUEK is the largest coal producing company in Russia and is one of the companies that the UK imports its coal from – roughly 30% of Russian coal imports to the UK. A Greenpeace investigation found the UK spends nearly a billion pounds each year importing coal from Russia.

SUEK’s chairman Andrew Melnichenko has connections to the the UK government, the investigation found. His long-standing advisor George Cardona, is a former special advisor to Geoffrey Howe.

The Energydesk analysis comes after reports that the German government will give financial support for the export of coal-fired power-plants by the country’s manufacturers. Late last year French President Francois Hollande announced that France will stop public export credits for coal projects in developing countries.

A recent report by the Overseas Development Institute (ODI) revealed that the UK was still giving close to £1.2 billion annually to support exploration for oil, coal and gas. That includes both national subsidies (including tax breaks for North Sea oil exploration), and some $663 million (£425m) per year in public finance for overseas exploration including in Siberia in Russia, Brazil, India, and Indonesia.

But as reported in The Ecologist, those figures related to 2012. The new figures for UKEF support for fossil fuels in 2013 / 2014 are certain to push that total to a new record.

 


 

This article was originally published on the Greenpeace Energydesk blog. This version has been edited by The Ecologist.

 




388811

UK’s soaraway financial support to foreign fossil fuels Updated for 2026





The UK government financial support to fossil fuel industries abroad has soared to over £1 billion a year under the Coalition, according to an analysis by Greenpeace Energydesk.

The total support for fossil fuel industries amounts to £1.76bn-worth of Export Credit Guarantees between 2010-2014, underwritten by taxpayer’s money.

And of that, almost £1.1bn was handed out in the last financial year, 2013 / 2014, more than ten times up on two years previously.

This is despite PM David Cameron recently publicly decrying fossil fuel subsidies, and the financial backing breaks a promise set out in the coalition government’s manifesto.

David Cameron denounced “economically and environmentally perverse fossil fuel subsidies which distort free markets and rip off taxpayers” at the Ban Ki Moon climate summit in September.

The coalition manifesto stated the new government would use Export Credit Guarantees for “innovative and green technologies, instead of supporting investment in dirty fossil-fuel energy production.”

UKEF’s fossil fuel support hits new heights

UK Export Finance Agency (UKEF) is authorised by the government to decide what to financially back and their main instrument is the Export Credit Guarantee. These are designed to minimise the risk of making deals abroad for UK exporters.

In practice this means UKEF can work with banks to partially underwrite bonds that are a sort of insurance policy on the contract – and expected by the overseas buyer to be provided by the exporter. This supports the deal by releasing the working capital paid by the overseas buyer to the exporter, which can be used instead of placing it with the bank.

UKEF also provides insurance for UK exporters to protect against non-payment or other issues that commercial insurance won’t provide, as well as sometimes lending money to the buyer of the UK export so that they can pay them directly.

In the four years since the coalition government came into power in 2010, UKEF has announced significant support for a range of overseas fossil fuel projects – from backing for coal mining in Russia to oil and gas exploration in Brazil.

Last financial year was a particularly big one in terms of financial backing for fossil fuel projects, with over £380 million going to Brazilian state-controlled energy giant Petrobras – which also happens to be embroiled in an ongoing corruption scandal.

This was as part of a US$1 billion – around £660 million at current rates – line of credit signed with the firm in 2012. The deal involves UK drilling services for oil and gas exploration in Brazil, and presumably offshore exploration, too, since one of the UK firms specialises in subsea engineering.

There was also what UKEF called its “largest limited recourse project financing” that it has ever supported – around £475 million so going to support the build of petrochemical complex in Saudi Arabia by a UK construction firm.

UKEF’s big favourite: Russian coal

Since 2010 there has been six instances of financial support pledged to Russia by UKEF, totalling around £430 million. This includes hefty support for Russian coal projects, financial backing for state-owned gas giant Gazprom to receive engineering equipment from Rolls-Royce Power Engineering, and expertise and software to other fossil fuels projects.

Around £67 million of the UKEF backing for Russian fossil fuel developments has even gone to US-based Joy Mining, which has a manufacturing arm in the UK. The money has supported the export of mining equipment to Siberian Coal & Energy Co (known as SUEK) and Southern Kuzbass Coal Co OAO.

SUEK is the largest coal producing company in Russia and is one of the companies that the UK imports its coal from – roughly 30% of Russian coal imports to the UK. A Greenpeace investigation found the UK spends nearly a billion pounds each year importing coal from Russia.

SUEK’s chairman Andrew Melnichenko has connections to the the UK government, the investigation found. His long-standing advisor George Cardona, is a former special advisor to Geoffrey Howe.

The Energydesk analysis comes after reports that the German government will give financial support for the export of coal-fired power-plants by the country’s manufacturers. Late last year French President Francois Hollande announced that France will stop public export credits for coal projects in developing countries.

A recent report by the Overseas Development Institute (ODI) revealed that the UK was still giving close to £1.2 billion annually to support exploration for oil, coal and gas. That includes both national subsidies (including tax breaks for North Sea oil exploration), and some $663 million (£425m) per year in public finance for overseas exploration including in Siberia in Russia, Brazil, India, and Indonesia.

But as reported in The Ecologist, those figures related to 2012. The new figures for UKEF support for fossil fuels in 2013 / 2014 are certain to push that total to a new record.

 


 

This article was originally published on the Greenpeace Energydesk blog. This version has been edited by The Ecologist.

 




388811

UK’s soaraway financial support to foreign fossil fuels Updated for 2026





The UK government financial support to fossil fuel industries abroad has soared to over £1 billion a year under the Coalition, according to an analysis by Greenpeace Energydesk.

The total support for fossil fuel industries amounts to £1.76bn-worth of Export Credit Guarantees between 2010-2014, underwritten by taxpayer’s money.

And of that, almost £1.1bn was handed out in the last financial year, 2013 / 2014, more than ten times up on two years previously.

This is despite PM David Cameron recently publicly decrying fossil fuel subsidies, and the financial backing breaks a promise set out in the coalition government’s manifesto.

David Cameron denounced “economically and environmentally perverse fossil fuel subsidies which distort free markets and rip off taxpayers” at the Ban Ki Moon climate summit in September.

The coalition manifesto stated the new government would use Export Credit Guarantees for “innovative and green technologies, instead of supporting investment in dirty fossil-fuel energy production.”

UKEF’s fossil fuel support hits new heights

UK Export Finance Agency (UKEF) is authorised by the government to decide what to financially back and their main instrument is the Export Credit Guarantee. These are designed to minimise the risk of making deals abroad for UK exporters.

In practice this means UKEF can work with banks to partially underwrite bonds that are a sort of insurance policy on the contract – and expected by the overseas buyer to be provided by the exporter. This supports the deal by releasing the working capital paid by the overseas buyer to the exporter, which can be used instead of placing it with the bank.

UKEF also provides insurance for UK exporters to protect against non-payment or other issues that commercial insurance won’t provide, as well as sometimes lending money to the buyer of the UK export so that they can pay them directly.

In the four years since the coalition government came into power in 2010, UKEF has announced significant support for a range of overseas fossil fuel projects – from backing for coal mining in Russia to oil and gas exploration in Brazil.

Last financial year was a particularly big one in terms of financial backing for fossil fuel projects, with over £380 million going to Brazilian state-controlled energy giant Petrobras – which also happens to be embroiled in an ongoing corruption scandal.

This was as part of a US$1 billion – around £660 million at current rates – line of credit signed with the firm in 2012. The deal involves UK drilling services for oil and gas exploration in Brazil, and presumably offshore exploration, too, since one of the UK firms specialises in subsea engineering.

There was also what UKEF called its “largest limited recourse project financing” that it has ever supported – around £475 million so going to support the build of petrochemical complex in Saudi Arabia by a UK construction firm.

UKEF’s big favourite: Russian coal

Since 2010 there has been six instances of financial support pledged to Russia by UKEF, totalling around £430 million. This includes hefty support for Russian coal projects, financial backing for state-owned gas giant Gazprom to receive engineering equipment from Rolls-Royce Power Engineering, and expertise and software to other fossil fuels projects.

Around £67 million of the UKEF backing for Russian fossil fuel developments has even gone to US-based Joy Mining, which has a manufacturing arm in the UK. The money has supported the export of mining equipment to Siberian Coal & Energy Co (known as SUEK) and Southern Kuzbass Coal Co OAO.

SUEK is the largest coal producing company in Russia and is one of the companies that the UK imports its coal from – roughly 30% of Russian coal imports to the UK. A Greenpeace investigation found the UK spends nearly a billion pounds each year importing coal from Russia.

SUEK’s chairman Andrew Melnichenko has connections to the the UK government, the investigation found. His long-standing advisor George Cardona, is a former special advisor to Geoffrey Howe.

The Energydesk analysis comes after reports that the German government will give financial support for the export of coal-fired power-plants by the country’s manufacturers. Late last year French President Francois Hollande announced that France will stop public export credits for coal projects in developing countries.

A recent report by the Overseas Development Institute (ODI) revealed that the UK was still giving close to £1.2 billion annually to support exploration for oil, coal and gas. That includes both national subsidies (including tax breaks for North Sea oil exploration), and some $663 million (£425m) per year in public finance for overseas exploration including in Siberia in Russia, Brazil, India, and Indonesia.

But as reported in The Ecologist, those figures related to 2012. The new figures for UKEF support for fossil fuels in 2013 / 2014 are certain to push that total to a new record.

 


 

This article was originally published on the Greenpeace Energydesk blog. This version has been edited by The Ecologist.

 




388811

UK’s soaraway financial support to foreign fossil fuels Updated for 2026





The UK government financial support to fossil fuel industries abroad has soared to over £1 billion a year under the Coalition, according to an analysis by Greenpeace Energydesk.

The total support for fossil fuel industries amounts to £1.76bn-worth of Export Credit Guarantees between 2010-2014, underwritten by taxpayer’s money.

And of that, almost £1.1bn was handed out in the last financial year, 2013 / 2014, more than ten times up on two years previously.

This is despite PM David Cameron recently publicly decrying fossil fuel subsidies, and the financial backing breaks a promise set out in the coalition government’s manifesto.

David Cameron denounced “economically and environmentally perverse fossil fuel subsidies which distort free markets and rip off taxpayers” at the Ban Ki Moon climate summit in September.

The coalition manifesto stated the new government would use Export Credit Guarantees for “innovative and green technologies, instead of supporting investment in dirty fossil-fuel energy production.”

UKEF’s fossil fuel support hits new heights

UK Export Finance Agency (UKEF) is authorised by the government to decide what to financially back and their main instrument is the Export Credit Guarantee. These are designed to minimise the risk of making deals abroad for UK exporters.

In practice this means UKEF can work with banks to partially underwrite bonds that are a sort of insurance policy on the contract – and expected by the overseas buyer to be provided by the exporter. This supports the deal by releasing the working capital paid by the overseas buyer to the exporter, which can be used instead of placing it with the bank.

UKEF also provides insurance for UK exporters to protect against non-payment or other issues that commercial insurance won’t provide, as well as sometimes lending money to the buyer of the UK export so that they can pay them directly.

In the four years since the coalition government came into power in 2010, UKEF has announced significant support for a range of overseas fossil fuel projects – from backing for coal mining in Russia to oil and gas exploration in Brazil.

Last financial year was a particularly big one in terms of financial backing for fossil fuel projects, with over £380 million going to Brazilian state-controlled energy giant Petrobras – which also happens to be embroiled in an ongoing corruption scandal.

This was as part of a US$1 billion – around £660 million at current rates – line of credit signed with the firm in 2012. The deal involves UK drilling services for oil and gas exploration in Brazil, and presumably offshore exploration, too, since one of the UK firms specialises in subsea engineering.

There was also what UKEF called its “largest limited recourse project financing” that it has ever supported – around £475 million so going to support the build of petrochemical complex in Saudi Arabia by a UK construction firm.

UKEF’s big favourite: Russian coal

Since 2010 there has been six instances of financial support pledged to Russia by UKEF, totalling around £430 million. This includes hefty support for Russian coal projects, financial backing for state-owned gas giant Gazprom to receive engineering equipment from Rolls-Royce Power Engineering, and expertise and software to other fossil fuels projects.

Around £67 million of the UKEF backing for Russian fossil fuel developments has even gone to US-based Joy Mining, which has a manufacturing arm in the UK. The money has supported the export of mining equipment to Siberian Coal & Energy Co (known as SUEK) and Southern Kuzbass Coal Co OAO.

SUEK is the largest coal producing company in Russia and is one of the companies that the UK imports its coal from – roughly 30% of Russian coal imports to the UK. A Greenpeace investigation found the UK spends nearly a billion pounds each year importing coal from Russia.

SUEK’s chairman Andrew Melnichenko has connections to the the UK government, the investigation found. His long-standing advisor George Cardona, is a former special advisor to Geoffrey Howe.

The Energydesk analysis comes after reports that the German government will give financial support for the export of coal-fired power-plants by the country’s manufacturers. Late last year French President Francois Hollande announced that France will stop public export credits for coal projects in developing countries.

A recent report by the Overseas Development Institute (ODI) revealed that the UK was still giving close to £1.2 billion annually to support exploration for oil, coal and gas. That includes both national subsidies (including tax breaks for North Sea oil exploration), and some $663 million (£425m) per year in public finance for overseas exploration including in Siberia in Russia, Brazil, India, and Indonesia.

But as reported in The Ecologist, those figures related to 2012. The new figures for UKEF support for fossil fuels in 2013 / 2014 are certain to push that total to a new record.

 


 

This article was originally published on the Greenpeace Energydesk blog. This version has been edited by The Ecologist.

 




388811

UK’s soaraway financial support to foreign fossil fuels Updated for 2026





The UK government financial support to fossil fuel industries abroad has soared to over £1 billion a year under the Coalition, according to an analysis by Greenpeace Energydesk.

The total support for fossil fuel industries amounts to £1.76bn-worth of Export Credit Guarantees between 2010-2014, underwritten by taxpayer’s money.

And of that, almost £1.1bn was handed out in the last financial year, 2013 / 2014, more than ten times up on two years previously.

This is despite PM David Cameron recently publicly decrying fossil fuel subsidies, and the financial backing breaks a promise set out in the coalition government’s manifesto.

David Cameron denounced “economically and environmentally perverse fossil fuel subsidies which distort free markets and rip off taxpayers” at the Ban Ki Moon climate summit in September.

The coalition manifesto stated the new government would use Export Credit Guarantees for “innovative and green technologies, instead of supporting investment in dirty fossil-fuel energy production.”

UKEF’s fossil fuel support hits new heights

UK Export Finance Agency (UKEF) is authorised by the government to decide what to financially back and their main instrument is the Export Credit Guarantee. These are designed to minimise the risk of making deals abroad for UK exporters.

In practice this means UKEF can work with banks to partially underwrite bonds that are a sort of insurance policy on the contract – and expected by the overseas buyer to be provided by the exporter. This supports the deal by releasing the working capital paid by the overseas buyer to the exporter, which can be used instead of placing it with the bank.

UKEF also provides insurance for UK exporters to protect against non-payment or other issues that commercial insurance won’t provide, as well as sometimes lending money to the buyer of the UK export so that they can pay them directly.

In the four years since the coalition government came into power in 2010, UKEF has announced significant support for a range of overseas fossil fuel projects – from backing for coal mining in Russia to oil and gas exploration in Brazil.

Last financial year was a particularly big one in terms of financial backing for fossil fuel projects, with over £380 million going to Brazilian state-controlled energy giant Petrobras – which also happens to be embroiled in an ongoing corruption scandal.

This was as part of a US$1 billion – around £660 million at current rates – line of credit signed with the firm in 2012. The deal involves UK drilling services for oil and gas exploration in Brazil, and presumably offshore exploration, too, since one of the UK firms specialises in subsea engineering.

There was also what UKEF called its “largest limited recourse project financing” that it has ever supported – around £475 million so going to support the build of petrochemical complex in Saudi Arabia by a UK construction firm.

UKEF’s big favourite: Russian coal

Since 2010 there has been six instances of financial support pledged to Russia by UKEF, totalling around £430 million. This includes hefty support for Russian coal projects, financial backing for state-owned gas giant Gazprom to receive engineering equipment from Rolls-Royce Power Engineering, and expertise and software to other fossil fuels projects.

Around £67 million of the UKEF backing for Russian fossil fuel developments has even gone to US-based Joy Mining, which has a manufacturing arm in the UK. The money has supported the export of mining equipment to Siberian Coal & Energy Co (known as SUEK) and Southern Kuzbass Coal Co OAO.

SUEK is the largest coal producing company in Russia and is one of the companies that the UK imports its coal from – roughly 30% of Russian coal imports to the UK. A Greenpeace investigation found the UK spends nearly a billion pounds each year importing coal from Russia.

SUEK’s chairman Andrew Melnichenko has connections to the the UK government, the investigation found. His long-standing advisor George Cardona, is a former special advisor to Geoffrey Howe.

The Energydesk analysis comes after reports that the German government will give financial support for the export of coal-fired power-plants by the country’s manufacturers. Late last year French President Francois Hollande announced that France will stop public export credits for coal projects in developing countries.

A recent report by the Overseas Development Institute (ODI) revealed that the UK was still giving close to £1.2 billion annually to support exploration for oil, coal and gas. That includes both national subsidies (including tax breaks for North Sea oil exploration), and some $663 million (£425m) per year in public finance for overseas exploration including in Siberia in Russia, Brazil, India, and Indonesia.

But as reported in The Ecologist, those figures related to 2012. The new figures for UKEF support for fossil fuels in 2013 / 2014 are certain to push that total to a new record.

 


 

This article was originally published on the Greenpeace Energydesk blog. This version has been edited by The Ecologist.

 




388811

UK’s soaraway financial support to foreign fossil fuels Updated for 2026





The UK government financial support to fossil fuel industries abroad has soared to over £1 billion a year under the Coalition, according to an analysis by Greenpeace Energydesk.

The total support for fossil fuel industries amounts to £1.76bn-worth of Export Credit Guarantees between 2010-2014, underwritten by taxpayer’s money.

And of that, almost £1.1bn was handed out in the last financial year, 2013 / 2014, more than ten times up on two years previously.

This is despite PM David Cameron recently publicly decrying fossil fuel subsidies, and the financial backing breaks a promise set out in the coalition government’s manifesto.

David Cameron denounced “economically and environmentally perverse fossil fuel subsidies which distort free markets and rip off taxpayers” at the Ban Ki Moon climate summit in September.

The coalition manifesto stated the new government would use Export Credit Guarantees for “innovative and green technologies, instead of supporting investment in dirty fossil-fuel energy production.”

UKEF’s fossil fuel support hits new heights

UK Export Finance Agency (UKEF) is authorised by the government to decide what to financially back and their main instrument is the Export Credit Guarantee. These are designed to minimise the risk of making deals abroad for UK exporters.

In practice this means UKEF can work with banks to partially underwrite bonds that are a sort of insurance policy on the contract – and expected by the overseas buyer to be provided by the exporter. This supports the deal by releasing the working capital paid by the overseas buyer to the exporter, which can be used instead of placing it with the bank.

UKEF also provides insurance for UK exporters to protect against non-payment or other issues that commercial insurance won’t provide, as well as sometimes lending money to the buyer of the UK export so that they can pay them directly.

In the four years since the coalition government came into power in 2010, UKEF has announced significant support for a range of overseas fossil fuel projects – from backing for coal mining in Russia to oil and gas exploration in Brazil.

Last financial year was a particularly big one in terms of financial backing for fossil fuel projects, with over £380 million going to Brazilian state-controlled energy giant Petrobras – which also happens to be embroiled in an ongoing corruption scandal.

This was as part of a US$1 billion – around £660 million at current rates – line of credit signed with the firm in 2012. The deal involves UK drilling services for oil and gas exploration in Brazil, and presumably offshore exploration, too, since one of the UK firms specialises in subsea engineering.

There was also what UKEF called its “largest limited recourse project financing” that it has ever supported – around £475 million so going to support the build of petrochemical complex in Saudi Arabia by a UK construction firm.

UKEF’s big favourite: Russian coal

Since 2010 there has been six instances of financial support pledged to Russia by UKEF, totalling around £430 million. This includes hefty support for Russian coal projects, financial backing for state-owned gas giant Gazprom to receive engineering equipment from Rolls-Royce Power Engineering, and expertise and software to other fossil fuels projects.

Around £67 million of the UKEF backing for Russian fossil fuel developments has even gone to US-based Joy Mining, which has a manufacturing arm in the UK. The money has supported the export of mining equipment to Siberian Coal & Energy Co (known as SUEK) and Southern Kuzbass Coal Co OAO.

SUEK is the largest coal producing company in Russia and is one of the companies that the UK imports its coal from – roughly 30% of Russian coal imports to the UK. A Greenpeace investigation found the UK spends nearly a billion pounds each year importing coal from Russia.

SUEK’s chairman Andrew Melnichenko has connections to the the UK government, the investigation found. His long-standing advisor George Cardona, is a former special advisor to Geoffrey Howe.

The Energydesk analysis comes after reports that the German government will give financial support for the export of coal-fired power-plants by the country’s manufacturers. Late last year French President Francois Hollande announced that France will stop public export credits for coal projects in developing countries.

A recent report by the Overseas Development Institute (ODI) revealed that the UK was still giving close to £1.2 billion annually to support exploration for oil, coal and gas. That includes both national subsidies (including tax breaks for North Sea oil exploration), and some $663 million (£425m) per year in public finance for overseas exploration including in Siberia in Russia, Brazil, India, and Indonesia.

But as reported in The Ecologist, those figures related to 2012. The new figures for UKEF support for fossil fuels in 2013 / 2014 are certain to push that total to a new record.

 


 

This article was originally published on the Greenpeace Energydesk blog. This version has been edited by The Ecologist.

 




388811

UK’s soaraway financial support to foreign fossil fuels Updated for 2026





The UK government financial support to fossil fuel industries abroad has soared to over £1 billion a year under the Coalition, according to an analysis by Greenpeace Energydesk.

The total support for fossil fuel industries amounts to £1.76bn-worth of Export Credit Guarantees between 2010-2014, underwritten by taxpayer’s money.

And of that, almost £1.1bn was handed out in the last financial year, 2013 / 2014, more than ten times up on two years previously.

This is despite PM David Cameron recently publicly decrying fossil fuel subsidies, and the financial backing breaks a promise set out in the coalition government’s manifesto.

David Cameron denounced “economically and environmentally perverse fossil fuel subsidies which distort free markets and rip off taxpayers” at the Ban Ki Moon climate summit in September.

The coalition manifesto stated the new government would use Export Credit Guarantees for “innovative and green technologies, instead of supporting investment in dirty fossil-fuel energy production.”

UKEF’s fossil fuel support hits new heights

UK Export Finance Agency (UKEF) is authorised by the government to decide what to financially back and their main instrument is the Export Credit Guarantee. These are designed to minimise the risk of making deals abroad for UK exporters.

In practice this means UKEF can work with banks to partially underwrite bonds that are a sort of insurance policy on the contract – and expected by the overseas buyer to be provided by the exporter. This supports the deal by releasing the working capital paid by the overseas buyer to the exporter, which can be used instead of placing it with the bank.

UKEF also provides insurance for UK exporters to protect against non-payment or other issues that commercial insurance won’t provide, as well as sometimes lending money to the buyer of the UK export so that they can pay them directly.

In the four years since the coalition government came into power in 2010, UKEF has announced significant support for a range of overseas fossil fuel projects – from backing for coal mining in Russia to oil and gas exploration in Brazil.

Last financial year was a particularly big one in terms of financial backing for fossil fuel projects, with over £380 million going to Brazilian state-controlled energy giant Petrobras – which also happens to be embroiled in an ongoing corruption scandal.

This was as part of a US$1 billion – around £660 million at current rates – line of credit signed with the firm in 2012. The deal involves UK drilling services for oil and gas exploration in Brazil, and presumably offshore exploration, too, since one of the UK firms specialises in subsea engineering.

There was also what UKEF called its “largest limited recourse project financing” that it has ever supported – around £475 million so going to support the build of petrochemical complex in Saudi Arabia by a UK construction firm.

UKEF’s big favourite: Russian coal

Since 2010 there has been six instances of financial support pledged to Russia by UKEF, totalling around £430 million. This includes hefty support for Russian coal projects, financial backing for state-owned gas giant Gazprom to receive engineering equipment from Rolls-Royce Power Engineering, and expertise and software to other fossil fuels projects.

Around £67 million of the UKEF backing for Russian fossil fuel developments has even gone to US-based Joy Mining, which has a manufacturing arm in the UK. The money has supported the export of mining equipment to Siberian Coal & Energy Co (known as SUEK) and Southern Kuzbass Coal Co OAO.

SUEK is the largest coal producing company in Russia and is one of the companies that the UK imports its coal from – roughly 30% of Russian coal imports to the UK. A Greenpeace investigation found the UK spends nearly a billion pounds each year importing coal from Russia.

SUEK’s chairman Andrew Melnichenko has connections to the the UK government, the investigation found. His long-standing advisor George Cardona, is a former special advisor to Geoffrey Howe.

The Energydesk analysis comes after reports that the German government will give financial support for the export of coal-fired power-plants by the country’s manufacturers. Late last year French President Francois Hollande announced that France will stop public export credits for coal projects in developing countries.

A recent report by the Overseas Development Institute (ODI) revealed that the UK was still giving close to £1.2 billion annually to support exploration for oil, coal and gas. That includes both national subsidies (including tax breaks for North Sea oil exploration), and some $663 million (£425m) per year in public finance for overseas exploration including in Siberia in Russia, Brazil, India, and Indonesia.

But as reported in The Ecologist, those figures related to 2012. The new figures for UKEF support for fossil fuels in 2013 / 2014 are certain to push that total to a new record.

 


 

This article was originally published on the Greenpeace Energydesk blog. This version has been edited by The Ecologist.

 




388811