Government awards its first ever green transition loan

Scottish consultancy firm Wood has won the UK’s first government-backed green transition loan.

The £430 million loan, backed directly by the government department of UK Export Finance, will enable Wood to take advantage of green trade opportunities, which are expected to generate £170 billion worth of export sales for the UK by 2030.

International Trade Secretary Liz Truss announced the loan, saying the extra funding would help Wood grow its business faster by taking full advantage of the energy transition, making investments in future low carbon-growth areas and clean growth projects around the world, and enhancing its own research and development projects in clean growth sectors.

The consultancy, based in Aberdeen, currently has almost 7,000 employees and generates about £400 million a year from exports. It pledges to use the loan to create more export revenue and green jobs, cut its greenhouse gas emissions and expand its clean growth portfolio. Specifically, it’s looking at investing in hydrogen and other forms of clean energy as well as in decarbonisation technologies.

“Green trade presents a major economic opportunity for Britain that will drive high-value jobs in every part of the nation,” said Ms Truss in her announcement. “Wood has already made great strides in repositioning its business for a low-carbon future. I am delighted it is the first company to energise its clean growth plans using UK Export Finance’s new Transition Export Development Guarantee, which will support thousands of green jobs.”