PARLIAMENTARY WRITTEN QUESTION
Fossil Fuels (27 January 2021)

To ask the Secretary of State for Foreign, Commonwealth and Development Affairs, how many fossil fuel projects CDC Group plans to support in 2021; where those projects are located; and which of those projects are panned to reach financial close in the next six months.

Asked by:
Anna McMorrin (Labour)

CDC's fossil fuel policy was published in December 2020. The policy excludes new investment in the vast majority of fossil fuel subsectors, with very limited exceptions. CDC will only consider investments in gas power and related infrastructure if they are aligned with the Paris Agreement and aligned with a country's pathway to net zero emissions by 2050.

Prior to 2021, CDC made investment commitments to two gas power generation projects which are expected to reach financial close in 2021. Both of these projects are in Africa. A small number of the investment funds to which CDC committed prior to the adoption of its fossil fuel policy, in December 2020, may make investments to fossil fuel projects under their existing legal mandates.

Specific pipeline information is not disclosed as this is commercially sensitive.

CDC has invested over $1 billion of climate finance in the past three years and has set a target for 30% of all new commitments in 2021 to be to climate finance.

CDC's policy is aligned with the HMG fossil fuel policy which excludes fossil fuel investments, except under certain circumstances. Any time line for completely stopping gas investments would be dependent on HMG fossil fuel policy.

Answered by:
Sir James Duddridge (Conservative)
2 February 2021