
Appeal made to Foreign Secretary over concerns about support for overseas fossil fuel projects
The campaign group Global Justice Now (GJN) has written to the Foreign Secretary asking the government to strengthen its commitment to ending support for overseas fossil fuel projects.
Posted on 03 February 2025
GJN says that it has concerns with a government policy which still allows for financial support to be given to fossil fuel projects abroad in “limited circumstances”, and argues that this is incompatible with the UK’s obligations under the Paris Agreement on climate change.
In December 2020, the Prime Minister announced a new government policy aimed at aligning overseas investment and support with the UK’s own clean energy goals, with guidance for implementing the policy published in March 2021.
While the policy pledges to stop any new direct and indirect financial or promotional support for fossil fuel projects overseas, it still allows for support in certain circumstances. These circumstances include for gas power projects and related infrastructure, carbon capture projects, and in certain sectors such as transport and defence.
Under the current policy, the continued financial support of bodies such as energy company Globeleq, which reportedly produced five times more electricity from fossil fuels than it did from renewables in 2023, is also allowed for. In 2021, after the policy was in place, the company funded a new gas power plant which was justified on the basis that it came under the gas power exemption.
In its letter to the Foreign Secretary, GJN asks that the policy be reviewed to ensure it is aligned with legally binding obligations under the Paris Agreement, which require the UK to put forward its best efforts to limit global temperature rise this century.
The letter asks for a review of the exemption circumstances written into the policy, the pausing of future financial support for all overseas fossil fuel projects pending this review, and for the possibility of divesting from all existing investments in international fossil fuel projects to remain open.
The campaign group points to recent legal developments which have put more stringent controls on UK fossil fuel developments, as well as commitments made by the government at the recent COP29 summit.
In June 2024, a landmark legal case (Finch vs Surrey County Council) resulted in the Supreme Court ruling that planning applications for fossil fuel developments must now consider the amount of carbon emissions released by the burning of the fuel extracted when seeking planning permission.
In November 2024, the Secretary of State for Energy Security and Net Zero announced at COP29 that it would be providing funding support to help climate vulnerable countries to develop low carbon technologies and innovations.
GJN argues that the developments over the past year make a strong case for the government to review and firm up its policy for overseas spending on fossil fuel projects.
As well as requesting a policy review, GJN have asked the government to release further information about the UK’s investment in fossil fuel projects abroad, including decision documents relating to funding decisions which relied on exemptions under the policy.
Nick Dearden, director of Global Justice Now, quote:
“Pouring money into businesses which are expanding oil and gas in climate vulnerable countries is completely out of step with the government’s claims to climate leadership. We fear this could fall foul of the government’s state commitments and legally binding obligations. It adds insult to injury that this is aid money. Development funds should not be propping up corporations like Globaleq, which reportedly produced five times as much energy from fossil fuels as from renewables in 2023. The government must close these loopholes urgently.”
Leigh Day environment team solicitor Julia Eriksen said:
“Our client believes that this policy, and the guidance on its implementation, is not fit for purpose in its current form. They hope that this letter to the Foreign Secretary will alert the government to the flaws in the policy and prompt a review to ensure that loopholes are removed. Only in doing so can we be sure that the UK’s foreign investment policy remains in line with both domestic and international climate goals.”

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