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Dept for International Development

Answer

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: With permission, I would like to reply to the questions on this subject together. The UK Government is 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.

Secondary information

Type

Written question

Reference

415 c715-6W; 142349;142351

Session

2003-04

Subjects

Climate change Carbon dioxide Development aid Development banks Finance Investment Energy International assistance Fossil fuels Pollution control Loans Climate Change Convention

Link

View this Written question on www.publications.parliament.uk