UK Export Finance cut its portfolio’s direct financed emissions by 34% during 2025 although its oil and gas and aviation figures remain above their baseline levels.
The government export credit agency reported 4.8 million tonnes of Scope 1 and Scope 2 carbon dioxide equivalent emissions under its amount-at-risk accounting method. This was down from 7.2 million tonnes in 2024 and 8% below the 2021 baseline.
UK Export Finance (UKEF) helps UK companies sell their products and services to other countries. Simply put, it provides government-backed financial help when private banks think an international deal is too risky.
Financed emissions estimate the pollution associated with transactions supported through loans, guarantees and insurance. UKEF attributed the annual reduction mainly to the expiry of corporate airline support and the gradual repayment of emissions-intensive power sector transactions.
Under its alternative expected-loss methodology financed emissions fell by 31% to 876,603 tonnes. This placed the portfolio 15% below its 2021 baseline.
The largest improvement came from power projects where emissions intensity fell by 32% during 2025. It is now 73% below the 2021 baseline against a target to achieve a 58% reduction by 2030.
UKEF said increased renewable energy financing and reduced exposure to higher-emitting power projects had driven the improvement.
Oil and gas financed emissions dropped by 9% during the year as the agency’s financial exposure decreased. However they remained 49% above the 2021 baseline because a legacy project entered operation.
UKEF has stopped supporting new overseas fossil fuel energy projects apart from specified exemptions. It aims to cut oil and gas financed emissions by 75% by 2030.
Aviation emissions intensity decreased by 10% during 2025 following the expiry of airline support and a reduction in exposure. It remained 25% above the 2022 baseline following the industry’s recovery from the pandemic.
The agency has set a 35% aviation emissions intensity reduction target for 2035 and aims to bring its overall financed emissions to net zero by 2050.
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