Climate change
The coalition government has committed to reforming the ECGD so that it supports British companies which “develop and export innovative green technologies around the world, instead of supporting investment in dirty fossil-fuel energy production”.
David Cameron says he wants the Coalition to be the 'Greenest government ever'. (Photo: Flickr, Crown)
Despite this, and wider government policy increasingly recognising the importance of tackling climate change, the ECGD continues to disregard climate change and environmental standards. In fact ECGD has no climate change policy for its projects, nor does it have an emissions reduction target, claiming that the Government’s climate policy does not apply to it.
The ECGD has typically supported the fossil fuel industry, aviation and the arms industry. The ECGD’s latest annual report shows that the huge majority of its support continues to go to a single aviation company, Airbus [hyperlink to aviation report]. While the ECGD claims that it’s support of aerospace means support for more environmentally efficient planes, we have shown that most of its support is delivering new planes to open up new routes. There has been no apparent move towards supporting green technology.
The ECGD has supported aviation expansion. (Photo: Flikr, Bill Frazzetto)
As well as the obvious climate change implications of carbon intensive infrastructure and aerospace projects, other disasterous environmental and social impacts have been side effects of ECGD’s portfolio.
The ECGD’s continued disregard for environmental and social standards undermines coalition claims to be the ‘greenest government ever’.
What we are calling for:
- Adopt a prohibitions list of activities that will not be supported by the ECGD because they are not conducive to sustainable development.
- Implement a management and monitoring system to ensure the ECGD complies with wider government policy on human rights, the environment and sustainable development.
- Champion the highest achievable global standards for export credit agencies at an international level with regard to human rights, the environment and development.
To see our full recommendations see the network’s manifesto