Question

To ask the Secretary of State for Business, Innovation and Skills, what loans were made by UK Export Finance for fossil fuel energy exploration or fossil fuel power generation projects in 2014; what assessment was made of the carbon footprint of each such project prior to the loan being agreed; and whether sustainability or environmental impact assessments were made of those projects before the loans were granted.

In 2014 UK Export Finance (UKEF) has provided two guarantees for export credit loans made by banks for the supply of remote operated vehicles (ROVs) (£14.1m) and a pipe-laying vessel (£61m) to Nigeria and Brazil respectively for general use and not related to a specific project but which may be used in connection with oil exploration and production.

When UKEF is asked to support a project, it applies the OECD Recommendation on Common Approaches for Officially Supported Export Credits and Environmental and Social Due Diligence (the OECD Common Approaches) where this is required. It informs the way in which member Export Credit Agencies should address the environmental social and human rights (ESHR) impacts of projects at a defined location which they are asked to support. However, in the case of the ROVs and pipe-laying vessel, there is no specific project or fixed location in which they would be operated to make it possible to assess environmental impacts. Therefore, in line with the OECD Common Approaches, an impact assessment was not carried out.