§ Lord Williams of Elvelasked Her Majesty's Government:
Whether the Export Credits Guarantee Department has since 1997 supported (a) coal-fired power stations in Malaysia to the extent of £500 million; (b) coal-fired power stations in China to the extent of £200 million; and (c) coal-fired power stations in Zimbabwe and Turkey; and if so, whether this support is consistent with the Prime Minister's call on all other nations to implement the Kyoto protocol. [HL6288]
§ Lord Sainsbury of Turville:Since 1997 ECGD has provided cover for exports to coal-fired power stations in:
- (a) Malaysia valued at £770 million,
- (b) China valued at £291 million,
- (c) Zimbabwe valued at £9 million, and
- (d) Turkey valued at £34 million.
Under the Kyoto Protocol, developed countries have legally binding targets to limit or reduce their greenhouse gas emission. Developing countries do not have such targets but they do have an obligation to limit their emissions.
Although the UK encourages the use of more environmentally friendly means of power generation, it is up to individual governments to decide their own power generation strategies. Government policy for power generation in the UK is to continue to use a diverse range of energy sources in order to ensure security of supply, and it is not for the UK to deny that option to other countries.
UK companies sell goods and services to coal-fired power stations abroad and some of these exports make use of cover from ECGD. This is in line with the UK Government's policy to promote sustainable development and the use of cleaner coal technologies for coal-fired power generation. Many developing countries (such as China) do not at present have readily available alternatives to coal as their major source of fuel and the UK's aim is to encourage them to adopt high efficiency and cleaner coal technologies to reduce emissions. Provided that emissions are controlled ECGD believes that the economic and social benefits resulting from the availability of electrical power are usually sufficient to outweigh the potential environmental impact of the associated greenhouse gas emissions, but ECGD considers each case on its own merits.
ECGD is keen to support electricity generation from renewable resources. As the Prime Minister announced in September, the ECGD will help developing countries limit their greenhouse gas emissions by making available at least £50 million of cover each year, from next April, for creditworthy exports in the renewable energy sector. This is not a cap and should it receive viable applications for a greater level of business ECGD will consider raising 134WA the level of support available. This initiative will assist countries to meet their power generation requirements in a sustainable way and their obligations under Kyoto.