A Government consultation was launched on 12 December with industry and other stakeholders on the implementation and impact of the new policy on ending support for fossil fuels. The consultation is expected to conclude by 8 February 2021. UK Export Finance (UKEF) will continue to consider applications for support in the oil and gas sector whilst the consultation is ongoing and has already scaled up its support for the renewable energy sector. There will be very limited exceptions for gas-fired power plants and other projects, within strict parameters that accord with the Paris Agreement – details are set out in the consultation paper.
The Chancellor allocated GBP 2 billion to UKEF’s direct lending facility in the Spring Budget to accelerate its support for clean growth and renewable energy projects, meaning it can now provide direct loans dedicated to overseas buyers of UK renewable goods or services.