HC Deb 15 December 2003 vol 415 cc715-6W
Norman Baker:

To ask the Secretary of State for International Development (1) whether he has carried out an analysis of the extent to which his Department's support for fossil fuel investment is consistent with (a) the UK's obligations under the Kyoto Protocol and (b) the Government's goal to reduce its carbon dioxide emissions by 60 per cent. from 1990 levels by 2050; [142349]

(2) what his policy is towards the provision of loans and loan guarantees by multilateral development banks to fossil fuel projects overseas; and whether he has reviewed that policy in relation to concerns about climate change. [142351]

Hilary Benn:

The UK Government are committed to taking a lead in meeting obligations under the Kyoto Protocol, including reductions of carbon dioxide emissions. At the same time, we recognise the rights of other sovereign states to fulfil their own legitimate development needs. In considering support for fossil fuel based investments, it is standard procedure for DFID to liaise with other relevant Government Departments to ensure balance and consistency between these objectives. In addition, our policy is to ensure that lending institutions take account of possible social and environmental impacts such as climate change as part of their policies and procedures in assessing fossil fuel projects, before providing loans or loan guarantees. We are particularly concerned that the management of revenues from such projects occurs transparently and with a positive developmental impact. We hope that initiatives such as the Extractive Industries Transparency Initiative will help to achieve this.

The UK Energy White Paper, Our energy future—creating a low carbon economy, sets out four core objectives of UK Energy Policy: Tackling Climate Change, Energy Security, Cutting Fuel Poverty and Competitiveness. DFID is working closely with other Government Departments, notably FCO, DTI and DEFRA, to ensure a co-ordinated Whitehall approach to international energy issues.

Norman Baker:

To ask the Secretary of State for International Development what the total value of support from his Department is to overseas projects for (a) the extraction and transport of fossil fuels and (b) the development of renewable energy. [142350]

Hilary Benn:

DFID does not fund any projects for the extraction and transport of fossil fuels. It supports six projects that develop and promote small scale renewable energy sources, especially for rural communities. Projects cover the range of energy options, including renewable/fossil fuel hybrid systems, decentralised power generation and comparison with conventional grid electrification. The total value is £1 million over three years1. 1 Engineering Knowledge and Research Progress Report 2002, Infrastructure and Urban Development Department.

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