Apr 1 2003
Some £50 million (GBP) of cover for the UK renewable energy sector is being made available by the Export Credits Guarantee Department (ECGD) to help developing countries limit greenhouse gas emissions from today (1 April).
International Trade Minister Baroness Symons said: "This initiative strengthens ECGD's commitment to sustainable development by giving developing countries better access to renewable energy technology sourced from exporters and investors based in the UK."
ECGD and the Department for Trade and Industry have been working in partnership with exporters, investors and overseas buyers to identify and support new renewable energy opportunities as part of a Government-wide drive to encourage the development of power generation from renewable resources both in the UK and abroad.
"The challenge is now on for British companies to put forward viable renewable energy projects that can be supported by ECGD," added Baroness Symons.
ECGD has already received three applications from UK exporters in advance of today's announcement.
From April 2003, ECGD will:
- make available cover for at least £50m of exports each year that meets its normal project and country underwriting criteria; and, - participate in an outreach programme, run by DTI's Trade Promoters and the private sector, to stimulate exports of renewable energy goods to emerging markets to help overcome the low number of renewable energy applications for ECGD cover.
This initiative, which was first announced in 2002 by the Prime Minister Tony Blair, will:
- encourage UK entrepreneurs to develop and then export renewable energy goods and services and to offer them insurance against the risks of non-payment;
- assist more overseas countries to meet their power generation requirements in a sustainable way by providing finance at attractive commercial rates linked to UK involvement; and, - slow down the onset of, and possibly reduce the impact of, climate change resulting from greenhouse gas generation.
The UK Government's commitment to the promotion of sustainable development is reflected in ECGD's operations. ECGD looks for social and economic development combined with protection of the environment in all the projects to which it provides cover.
The Government has produced a guide to UK companies entitled "Exporting Sustainable Energy Products and Services" which details how to get help with: market and technology information, financial assistance; marketing support; advice on markets abroad, and introductions into overseas markets. Copies of this guide are available by clicking on the Department of Trade and Industry's website www.dti.gov.uk/renewable. For further information on the availability of cover for renewable energy sector exports, contact Nick George at 020 7512 7048; or e-mail [email protected]
ECGD, the Export Credits Guarantee Department, is the UK's export credit agency. A separate Government Department reporting to the Secretary of State for Trade and Industry, it has more than 80 years' experience of working closely with exporters, project sponsors, banks and buyers to help UK exporters of capital equipment and project-related goods and services. We do this by providing: - Insurance against non-payment to UK exporters;
- Help in arranging finance packages for buyers of UK goods by guaranteeing bank loans; and,
- Overseas Investment Insurance - a facility that gives UK investors up to 15 years' insurance against political risks.
Related link: www.dti.gov.uk/renewable