Question to the Foreign, Commonwealth & Development Office:

To ask the Minister of State, Foreign, Commonwealth and Development Office, pursuant to the Answer of 21 March 2024 to Question 19159 on Overseas Investment: Fossil Fuels, if he will publish a full energy portfolio for British International Investment setting out investments in (a) fossil fuels and (b) renewable energy in (i) 2021, (ii) 2022 and (iii) 2023.

Answered by Andrew Mitchell - Minister of State (Foreign, Commonwealth and Development Office) (Minister for Development)

BII already discloses the percentage of assets in its portfolio that can be considered climate finance and 'carbon-related' (i.e. in the fossil fuel value chain) as part of its annual Task Force on Climate related Financial Disclosures (TCFD) reporting in its Annual Accounts (published on BII's website), in line with TCFD recommendations.

The UK's Development White Paper set the ambition for BII to become the most transparent bilateral Development Finance Institution. Subsequently, BII has published a Transparency Roadmap. For its existing portfolio, the Roadmap commits BII to state whether an investment is fossil fuel or renewable energy power generation. This will be available on its public investment database by the end of the year.

Question to the Foreign, Commonwealth & Development Office:

To ask the Minister of State, Foreign, Commonwealth and Development Office, pursuant to the Answer of 21 March 2024 to Question 19159 on Overseas Investment: Fossil Fuels, what his planned timescale is for ending support for the overseas fossil fuel sector.

Answered by Andrew Mitchell - Minister of State (Foreign, Commonwealth and Development Office) (Minister for Development)

The Government's policy on supporting overseas fossil fuel projects is set out at https://assets.publishing.service.gov.uk/media/65840f10fc07f300128d45e9/aligning-uk-international-support-for-the-clean-energy-transition.pdf. This policy has been in force since 31 March 2021.

All investment commitments made by BII since December 2020 meet the conditions set out in BII's Climate Change Strategy and the UK Government's fossil fuel policy. BII are committed to Paris alignment and to reaching net zero at a portfolio level by 2050. A quick sale of existing fossil fuel assets would simply offload the problem to other potentially less responsible investors and may not offer value for money for the British taxpayer.

Question to the Foreign, Commonwealth & Development Office:

To ask the Minister of State, Foreign, Commonwealth and Development Office, with reference to the press release entitled PM announces the UK will end support for fossil fuel sector overseas, published on 12 December 2020, how many fossil fuel-related investments British International Investment has divested away from since that date.

Answered by Andrew Mitchell - Minister of State (Foreign, Commonwealth and Development Office) (Minister for Development)

All investment commitments made by British International Investment (BII) since December 2020 meet the conditions set out in BII's Climate Change Strategy and the UK Government's fossil fuel policy. BII publishes detailed metrics on portfolio-level exposure to carbon-related assets in their publicly available Annual Accounts. This is in line with TCFD-recommended disclosures. The latest data can be found at: https://www.bii.co.uk/annual-review-2022/publication/contents/templates/British_International_Investment_Annual_Review_2022.pdf. BII will release an update to these figures in the 2023 Annual Accounts, to be published later this year.