UK pledges 50% increase in climate finance to poor nations

Published 23:42 on September 27, 2015  /  Last updated at 23:42 on September 27, 2015  /  Climate Talks, EMEA, International

The UK will increase by 50% the amount of climate finance it provides to help poor nations over the next five years, the government announced on Sunday.

The UK will increase by 50% the amount of climate finance it provides to help poor nations over the next five years, the government announced on Sunday.

The UK said it would portion £5.8 billion ($8.8 billion) from its existing foreign aid budget over fiscal 2016-2020, including at least £1.76 billion in 2020.

The pledge, which observers expect to be matched by France on Monday, follows an increase by Germany, which in May said it would double the amount of climate finance it channels in an effort to build trust towards striking a global climate pact in December.

UN climate chief Christiana Figueres expects donor governments to collectively outline their plans for climate finance – a key element of getting poorer nations to the table in Paris – at a meeting of finance ministers in Lima on Oct. 9.

Developed nations have agreed to provide $100 billion annually from 2020. In addition, some emerging economies have signalled they will contribute, including a $3.1 billion pledge from China announced on Friday.

The developing world is keen to get more guarantees of how cash disbursals will scale up from current public levels at around a fifth of the ultimate goal, and greater transparency on whether the cash is additional, loan-based, includes ways of ensuring environment benefits and is public or private money.

The October Lima meeting is also expected to make headway on globally-agreed definitions of climate finance, including the publication of work by the OECD and Climate Policy Initiative using standards agreed by donor nations.

“We don’t yet know what finance flows will look like in 2020. This offer from the UK represents a significant uplift to UK public finance for climate activities, and is compatible with our fair share of the $100 billion,” said UK energy and climate minister Amber Rudd in a statement.

By Ben Garside – ben@carbon-pulse.com