Overseas Development Assistance: Fossil Fuel Subsidies Debate

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Department: Department for International Development

Overseas Development Assistance: Fossil Fuel Subsidies

Baroness Sheehan Excerpts
Tuesday 15th May 2018

(5 years, 10 months ago)

Lords Chamber
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Asked by
Baroness Sheehan Portrait Baroness Sheehan
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To ask Her Majesty’s Government how much overseas development assistance was spent on fossil fuel subsidies in the most recent reporting period.

Lord Bates Portrait The Minister of State, Department for International Development (Lord Bates) (Con)
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My Lords, the UK does not spend bilateral overseas development assistance on fossil fuel subsidies to benefit consumers. Our assistance helps countries to develop appropriate energy policies, attract private sector investment, and generate clean and renewable energy.

Baroness Sheehan Portrait Baroness Sheehan (LD)
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I thank the Minister for his Answer. CAFOD figures released last year for the reporting period from 2010 to 2014 show that at least £931 million of overseas development aid was spent on fossil fuels, rather than subsidies. What plans exist to reduce fossil fuel spending so that this contradiction in DfID policy—fighting climate change on the one hand and worsening it on the other—becomes history?

Lord Bates Portrait Lord Bates
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The noble Baroness makes a good point. As she rightly said, the CAFOD report refers to 2010-14. That precedes the SDGs, which have brought about a whole host of changes in how we promote renewable energy, and another change was the Paris Agreement on climate change. The numbers she referred to also include UK export finance, which supports the UK’s oil and gas industry, but it is not overseas development assistance. We do not use ODA to support fossil fuel subsidies at present.