Asked by: Caroline Lucas (Green Party - Brighton, Pavilion)
Question to the Department for International Trade:
To ask the Secretary of State for International Trade, how many fossil fuel projects UK Export Finance has plans to finance in the 12 months; and where those projects will be located.
Answered by Graham Stuart
UK Export Finance (UKEF) is obliged to consider all requests for its support. These requests can be made, and subsequently withdrawn, at any time.
When considering a request for support, UKEF conducts extensive due diligence, including environmental, social, and human rights due diligence and consideration of climate change, to understand the risk it is being asked to take. There are various reasons why an application to UKEF might not result in support being provided, or, if support is offered, why delays in providing that support might arise. All these factors make determining when UKEF support may, or even will be provided difficult and imprecise.
UKEF is currently considering requests for support for 6 projects involving fossil fuels which may be supported in the next twelve months. UKEF has also received a further 10 applications for trade finance cover in the sector and two applications from companies involved in the sector for support from the Export Development Guarantee which is not linked to any particular project. It is possible that not all these transactions will be concluded within the next 12 months, or indeed in subsequent years.
Those projects are in the following countries:
Algeria | 1 |
Azerbaijan | 2 |
Brazil | 2 |
Canada | 1 |
China | 2 |
Egypt | 1 |
Iraq | 1 |
Italy | 1 |
Malaysia | 2 |
Thailand | 1 |
Turkey | 1 |
Turkmenistan | 1 |
Asked by: Caroline Lucas (Green Party - Brighton, Pavilion)
Question to the Department for International Trade:
To ask the Secretary of State for International Trade, what assessment she has made of the potential effect of the Government's response to the covid-19 pandemic on the number of investor state dispute settlement (ISDS) cases; what assessment she has made of the potential merits of (a) co-operating with other countries, especially those in the Global South, to jointly withdraw consent to ISDS arbitration and (b) unilaterally withdrawing consent to ISDS arbitration before the first cases are brought arising from the covid-19 pandemic; and if she will make it her policy to exclude ISDS from all trade and investment negotiations involving the UK and not to sign any new agreements including ISDS.
Answered by Ranil Jayawardena
The precise details of any future Free Trade Agreement are a matter for formal negotiations, and we would not seek to pre-empt these discussions.
HM Government recognises the importance of strengthening international investment in response to COVID-19, and the continuingly important role played by both investment protection and ISDS provisions in safeguarding British investors overseas – including pensioners across the country, through their pension funds, and small- and medium-sized enterprises (SMEs).
We are clear that HM Government and our treaty partners retain the right to regulate in the public interest, including for public health purposes, which is already recognised under international law.
Asked by: Caroline Lucas (Green Party - Brighton, Pavilion)
Question to the Department for International Trade:
To ask the Secretary of State for International Trade, whether UK Export Finance is contributing to the agreed financing contracts for the Mozambique LNG Project; what the value is of export credits granted to that project; and if she will make a statement.
Answered by Graham Stuart
UK Export Finance (UKEF) has agreed to provide up to US$1.15bn of export finance support for UK exporters, as part of the design, construction and operation of a liquified natural gas (LNG) project in Mozambique. UKEF support is in the form of up to $300m of direct loans, and up to $850m in guarantees to the commercial banks providing lending.
The UKEF-supported element will support multiple UK businesses across the UK, including small and medium-sized enterprises, and in excess of 2,000 UK jobs.
The Project will generate significant revenue for Mozambique and be transformational for Mozambique’s economic and social development.