UK Export Finance and the Low Carbon Sector
This page provides answers to frequently asked questions in relation to UK Export Finance and the green sector.
Q. How much business has UK Export Finance done in this sector?
UK Export Finance has recently issued two guarantees with a total value of £31 million in support of two green sector projects: the first involving converting waste to energy, and the second for production of compressed natural gas from gas that would otherwise be flared.
Q. Why so little?
The information available to UK Export Finance is that the majority of the UK’s renewables industry is either concentrating its efforts on the home market or exporting to developed economies. Very few companies are venturing into the emerging markets where UK Export Finance support is usually most relevant.
Q. What could you do to encourage more business?
UK Export Finance’s remit from Ministers is to complement, not compete with, the private sector. It therefore acts in effect as an insurer of last resort and is responsive to demand from exporters and does not seek to stimulate it, although it takes active steps to create exporter awareness of its products working closely with UKTI for this purpose.
Q. What about the Coalition commitment below?
We will ensure that UK Trade and Investment and the Export Credits Guarantee Department become champions for British companies that develop and export innovative green technologies around the world, instead of supporting investment in dirty fossil-fuel energy production.
The Government is considering how this Coalition commitment will be implemented and expects to make a decision in early 2012.
Q. What if exporters don’t know UK Export Finance’s help is available?
For a number of years, UK Export Finance has been actively seeking to identify exporters of renewable energy equipment and services, for example by participating in trade association events, so that attendees can be made aware of the products available from UK Export Finance. Since the announcement of the new UK Export Finance products in the Trade and Investment for Growth White Paper in February 2011, UK Export Finance has stepped up its engagement with exporters in every sector, including renewables.
