§ Mr. DrewTo ask the Secretary of State for International Development if he will make a statement on his Department's policy towards the provision of loans and loan guarantees by multi-national banks to fossil fuel projects overseas; and what plans he has to amend his policy. [133632]
§ Hilary BennThe UK is a shareholder in a number of multilateral Development Banks which provide loans and loan guarantees for fossil fuel projects. The Government's policy is to ensure that these institutions comply with their own policies and procedures in all projects for which they provide finance. In considering whether to provide loans or loan guarantees this should include an assessment of the possible social and environmental impacts. In addition, our policy is to fully understand the developmental implications of fossil fuel projects. 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.