UKEF commits to achieving the net zero goal in 2050 – reNews
UK Export Finance (UKEF), the UK’s export credit agency, has launched a new plan to reach net zero by 2050, decarbonizing its financial portfolio and increasing its support for green exports.
As part of its new climate change strategy, the new target will require UKEF to increase its support for clean growth, renewable energy and climate adaptation exports while improving its management of climate-related risks on the market. his wallet.
The news comes as British Prime Minister Boris Johnson prepares to tell fellow world leaders at the United Nations General Assembly that climate change and economic growth are not mutually exclusive compromises, but are on the contrary, essential for the success of the other.
UKEF’s commitment is another step the UK has taken to prevent global temperatures from rising above 1.5 ° C and to protect our planet and our people from the growing impacts of climate change.
UKEF has a capacity of £ 50bn to support UK exports through loans, insurance and guarantees, providing £ 12.3bn in financial support to businesses last year.
This capacity will be fully carbon neutral by 2050 on a net basis.
To end its contribution to climate change, UKEF will increase its support for green exports, reduce greenhouse gas emissions from its financial portfolio, improve understanding and mitigation of its climate-related financial risks, make account for climate-related commitments, improve transparency and disclosure, and lead internationally, encouraging others to follow UKEF’s lead and set ambitious climate goals.
In less than 50 days, the UK will host the crucial UN climate change conference COP26 in Glasgow. Financial institutions have a vital role to play in meeting global net zero commitments and UKEF takes responsibility for tackling climate change.
International Trade Secretary Anne-Marie Trevelyan said: “This plan is one of the most ambitious of any export credit agency in the world.
“This puts UK export finance in favor of green exports to tackle climate change, bring the country up to speed and help us recover from the pandemic.
“UKEF’s net zero commitment shows the UK’s leadership on climate issues and encourages other countries to follow suit.
“Its premier financial products are helping UK businesses capture billions of pounds in foreign transactions, boost green exports and give hope that temperatures can be brought under control.”
To ensure that it delivers on its commitment, UKEF is setting realistic milestones for decarbonization by 2050. Over the next four years, UKEF will provide more details on emissions from its most intensive projects. in carbon, establish new climate change stress tests and increase its funding for green projects.
The ministry will then publish another strategy to detail progress towards net zero in 2025.