July 6, 2020 Read More →

CDC Group, U.K.’s overseas development bank, to end fossil fuel financing

The Guardian:

The UK government’s overseas development bank has bowed to calls to end fossil fuel financing abroad by promising to invest only in companies that align with the Paris climate agreement.

The CDC Group revealed its new climate strategy, which will end support for the most polluting fossil fuel projects, including the production of oil and coal, and channel almost a third of its spending towards climate finance.

The publicly owned investor, which supports job-creating sectors in Africa and south Asia, will end financing for coal mining, and oil and gas production, as well as new or existing power plants and refineries that use coal or heavy oil.

The UK government is under growing pressure to end its support for overseas fossil fuel projects after campaigners revealed that more than £3bn in public money was used to support polluting projects abroad since the Paris climate agreement was signed.

The CDC’s new climate strategy will place “a climate lens” over every sector in which it invests to make sure companies are reducing emissions, according to the development bank.

The bank will allow only rare investments in gas power plants to support the UN’s sustainable development goals, and only in countries that can prove the project is aligned with a wider climate transition plan.

[Jillian Ambrose]

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