UK International Climate Finance: A UK Government commitment to support developing countries to respond to the challenges and opportunities of climate change

Report
from Government of the United Kingdom
Published on 10 Sep 2019 View Original
preview

"There is a clear moral imperative for developed economies such as the UK to help those around the world who stand to lose most from the consequences of manmade climate change."
Prime Minister Theresa May, December 2017

Climate change is a global challenge that affects us all. No country is projected to be spared from the impacts of further global temperature increases and we are already facing serious challenges to the natural environment; to food production; and to water resources. Without concerted global action to limit and manage the impact of climate change, we could reverse the huge gains in global poverty reduction which the UK has helped achieve over the last 3 decades.

UK International Climate Finance (ICF) plays a crucial role in addressing this global challenge. Three government Departments (DFID, BEIS and Defra) have responsibility for investing the UK’s £5.8bn of ICF between 2016 and 2021.

Our ICF delivers in the national interest, delivering all 4 aims of the UK aid strategy:

  • strengthening global peace, security and governance
  • strengthening resilience and response to crises
  • promoting global prosperity
  • tackling extreme poverty and helping the world’s most vulnerable

If we do not tackle climate change, it will undo the progress made globally to meet the Sustainable Development Goals. We directly support the goals on climate action and affordable and clean energy, as well as indirectly supporting many others.

Overview

Domestically and internationally the UK is a leader on climate change. We played a pivotal role in securing the Paris Agreement in 2015, where the world came together to agree a plan to limit temperature rises to below 2 degrees. We have reduced our emissions quicker than any other country in the G20, drawing on the depth and breadth of UK low carbon knowledge and expertise and creating new economic opportunities. Since 1990 the UK economy has grown by two thirds while emissions have fallen by over 40%. We have ended UK support for unabated coal power generation and, across the world, UK businesses are helping to make the global low carbon transition a reality.

The UK honours its international obligations. Alongside other developed countries, we have committed to jointly mobilise $100bn per year in climate finance to developing countries from public and private sources. This was instrumental in securing the landmark Paris Agreement. As part of this commitment, we pledged to provide at least £5.8bn of International Climate Finance (ICF) between 2016 and 2020. This is official development assistance from DFID, BEIS and Defra. It aims for an even split between mitigation and adaptation and places us amongst the world’s leading providers of climate finance. We have also committed up to $5bn with Germany and Norway for countries who bring forward ambitious projects to halt deforestation.

Investing our climate finance today helps reduce costs tomorrow. Every £1 invested well in climate-related risk reduction saves more than £3 (and up to £50) in avoided disaster impacts. Similarly, every pound spent cutting CO2 pays for itself between five- and twenty-fold by offsetting the future costs of climate change. Our ICF does this by:

  • building the resilience of the poorest people and communities. It supports countries to prepare for and adapt to climate change, improving how disasters are managed and reducing the harm they cause and the costs of responding

  • working to ensure that the vast expansion in infrastructure in developing countries is low carbon and climate resilient – using our finance to build capacity and unlock greater flows of private finance towards clean growth, bringing down the costs of a global low carbon transition in the process;

  • supporting work to halt deforestation and create new supply chains that are both profitable and sustainable. We help communities to use land in ways that reduce emissions and improve productivity whilst protecting and restoring forests that support important biodiversity and fragile eco-systems.

Our Results

We are committed to understanding and measuring the impact of our investments, and annually publish a set of key results. [attached]