13 Jan 2021 : A progressive motion  put forward by Labour  Devon County Councillor Yvonne Atkinson on Climate Change and Fossil Fuel Projects  has met with cross party support at Devon County Council (DCC), after Cabinet recommended it should consider a modified  version.

If passed, the motion would see DCC call on the Government to make two significant changes to their funding of fossil fuel projects:

• end all financing for new foreign fossil fuel projects immediately or risk undermining its own commitment to tackling the global climate crisis and
• change the mandate of its credit agency, UK Export Finance (UKEF), to stop offering billions of pounds in financial support to companies that bid for work on fossil fuel projects overseas despite a pledge to be carbon neutral at home.

Early this year, an investigation by Newsnight in conjunction with Greenpeace, found that UKEF – which works alongside the Department for International Trade  – had helped to finance oil and gas projects that, when complete, will emit up to 69 million tonnes of carbon a year; that equates to nearly a sixth of the total annual carbon emissions of the UK.

An earlier investigation into UKEF by the House of Commons Environmental Audit Committee in June 2019 had already highlighted the environmental implications of financing provided through UKEF and its apparent conflict with the UK’s international development and climate change targets.

Cllr Atkinson called for the UK to lead by example by urgently aligning our stated net zero priorities at home with our practices abroad in view of our COP presidency next year.

DCC’s Cabinet shared their concern about the environmental consequences of UK trade finance support directed towards the fossil fuel sector. Their motion calls on the Government to accelerate the change in policy and approach through UKEF, to achieve consistency with their international commitment to tackle climate change, as well as the UK’s own net zero carbon target and the recently published Ten Point Plan for a Green Industrial Revolution.

Welcoming the motion, Finola O’Neill, Secretary of environmental group SERA Devon, said “we applaud the DCC cross party approach to tackling climate change, as we move through and beyond the Pandemic. As we adapt to the Covid Pandemic, the biggest global challenge in a century, we observe the Climate and Ecological Emergency lurking in the background. We have a time-critical opportunity to make this turbulent period a launchpad for the change that was already needed to deal with our Planet’s disturbance. We do not have the time or money to get this wrong. We can not use public money to fund a fossil fuel industry that has no future in a rapidly warming world. That is an investment that leads to a dead end.”

Helena Whitten, co-founder of Devon Towns and Parishes for Climate Action added “The UK is hosting the G7 summit this summer and presiding over the COP26 this autumn. We have the chance to show global leadership and vision, as an emerging independent player in the international arena. The Climate and Ecological Emergency (CEE) is the next big challenge of the coming decade, one that matches the Pandemic in its impact on global health and the economy. We have rapidly learnt many useful lessons during the Pandemic which will stand us in good stead to tackle the CEE. Following science, acting early and cooperating internationally are just a few.”

Cllr Atkinson comments “There can only be one way to emerge from the Pandemic and that is with a Green Recovery that follows the solutions determined by our Climate and Environmental scientists. This motion forms part of this path that will aid Britain to find their feet on this new world stage as we face the challenges of the next decade together.”

The Climate Change and Fossil Fuel motion will be considered at Devon County Council’s full council meeting on Thursday February 18th.

About Devon Labour Party: https://devon.laboursites.org

Councillor Yvonne Atkinson yvonne.atkinson@devon.gov.uk

References

Devon County Council Cabinet Webcast timecode 1:37 https://devoncc.public-i.tv/core/portal/webcast_interactive/518138/start_time/5650000?force_language_code=en_GB

Devon County Council Cabinet Minutes: https://democracy.devon.gov.uk/documents/g4246/Printed%20minutes%2013th-Jan-2021%2010.30%20Cabinet.pdf?T=1

Devon County Council Cabinet Officers’ briefings https://democracy.devon.gov.uk/mgConvert2PDF.aspx?ID=34169

House of Commons Environmental Audit Committee – UK Export Finance UK Export Finance – Environmental Audit Committee – House of Commons (parliament.uk)

Greenpeace investigation Revealed: UK financing millions of tonnes of carbon emissions overseas – Unearthed (greenpeace.org)

Councillor Yvonne Atkinson brought a motion on Climate Change and Fossil Fuel Projects :

Cabinet RESOLVED that Council be recommended as follows:
(a) Whilst supporting the objectives of facilitating international trade and assisting viable UK export businesses, shares the concern highlighted by the Notice of Motion about the environmental consequences of UK trade finance support directed towards the fossil fuel sector; and
(b) Call on Government to accelerate the change in policy and approach through UK Export Finance to achieve consistency with the international commitment to tackle climate change as well as the UK’s own net zero carbon target and the recently published Ten Point Plan for a Green Industrial Revolution.

Cllr Atkinson’s original motion was as follows:

The UK export finance (UKEF) has used £3.5bn of public funds to support polluting projects since the government signed up to the Paris climate agreement and has directed £6bn of public money into fossil fuel projects around the world in the last decade.
It is considering requests for financial support for seven projects involving fossil fuels that may be agreed in 2021, and has received a further 10 applications for trade finance support in the sector.
Britain must lead by example by urgently aligning our stated net zero priorities at home with our practices abroad in view of our COP presidency next year. The government’s seeming willingness to pump billions of pounds of UK public money into overseas oil and gas demonstrates a reckless and inconsistent approach to climate action.
Devon County Council calls on the government to;
♦ end all financing for new foreign fossil fuel projects immediately or risk undermining its own commitment to tackling the global climate crisis; and
♦ change the mandate of its credit agency, UK export finance (UKEF), to stop offering billions of pounds in financial support to companies that bid for work on fossil fuel projects overseas despite a pledge to be carbon neutral at home.

Briefing Note / Position Statement from the Head of Planning, Transportation and Environment.
UK Export Finance is the operating name of the Export Credits Guarantee Department (ECGD). It is the UK’s export credit agency and a government department, working alongside the Department for International Trade as an integral part of its strategy and operations. It works with over 100 private credit insurers and lenders to help UK companies access export finance, operating at no net cost to the taxpayer. The services it can provide includes attractive financing terms offered to overseas buyers of UK goods and services to help exporters make their offering more competitive; this can include direct lending.
Early this year, an investigation by Newsnight, in conjunction with Unearthed – Greenpeace’s investigations unit – found that UKEF had helped to finance oil and gas projects that, when complete, will emit up to 69 million tonnes of carbon a year; that equates to nearly a sixth of the total annual carbon emissions of the UK. The UK is just one of a number of backers for these projects. As noted by the Notice of Motion, this research also found that, since 2010, UKEF has financed £6bn of fossil fuel projects, such as oil refineries, power plants and liquified gas extraction, which has involved some of the biggest oil and gas companies in the world.
This follows on from an earlier investigation by the House of Commons Environmental Audit Committee, which published its Nineteenth Report of Session 2017-19, entitled ‘UK Export Finance’ (HC 1804), on 10 June 2019 (available here). This highlighted the environmental implications of financing provided through UKEF and its apparent conflict with the UK’s international development and climate change targets. The Government’s response (available here) followed on 15th August 2019 and commented on each of the 13 recommendations made by the Committee. This provides a helpful synthesis of the respective positions, confirming UKEF support for fossil fuel projects abroad, but also commenting on how it is committed to working with countries across the world to unlock their renewable energy potential and support their transition away from fossil fuels to cleaner alternatives. Some of the disagreement relates to the speed of this transition and the justification for ongoing investment in polluting projects in the interim.
This Notice of Motion and the investigations mentioned above do demonstrate the need to look beyond the climate implications of our own carbon emissions alone in the UK, but to also address those internationally which are supported either by UK finance or, indeed, are serving UK-based consumption of resources and services. This is a complex issue, but one which needs to be tackled to achieve the reductions in carbon emissions which are essential to avoid the worst implications of climate change. It is also the case that such issues will, inevitably, be highlighted through the delayed COP26 event – the international climate change conference which is to be hosted by the UK in Glasgow in November 2021. On this basis, it is likely that government Ministers will be reviewing UK policy positions in preparation for this event and to assist in reaching strengthened international commitment to tackling climate change.

Minutes: https://democracy.devon.gov.uk/documents/g4246/Printed%20minutes%2013th-Jan-2021%2010.30%20Cabinet.pdf?T=1

Officers’ briefings https://democracy.devon.gov.uk/mgConvert2PDF.aspx?ID=34169