UK Vows End to Hydrocarbon Support Overseas

The UK will no longer support oil, gas and coal projects overseas, prime minister Boris Johnson declared on December 12 at the Climate Ambition Summit.

"We're going to help our friends around the world by moving away from supporting drilling and mining for hydrocarbons, but putting £11.6bn ($15.6bn) of our overseas aid to support green technology and decarbonisation across the planet," Johnson said.

In a statement ahead of the summit, the government clarified that the country would cease all export financing, aid funding and trade promotion for new crude oil, natural gas or thermal coal projects, with very limited exceptions. This represents a significant shift in policy, the government said, noting that support for UK oil and gas exports through trade promotion and export financing came to £21bn in the last four years.

The policy will be implemented after a short period of consultation and will come into force as soon as possible, before the UN Climate Change Conference that will take place in Glasgow in November 2021. The announcement follows a move by France in October to stop providing state export guarantees for all oil projects by 2025 and natural gas schemes by 2035.

Johnson announced earlier this month that the UK would aim to deliver a 68% reduction in emissions by 2030 versus the 1990 level, representing one of the most ambitious targets in the world. The government said it would work with the UK oil and gas industry to support a transition to low carbon energy sources through the North Sea Transition Deal, establishing areas like Teesside and Aberdeen as "global hubs for wind energy, carbon capture and other clean technologies for the future."  

The government in September launched a review of its oil and gas licensing policy to ensure it was in line with the country's climate goals. Until this review is complete, no further contests will take place.