The UK’s International Climate Finance

UK ICF was launched in 2011 as Official Development Assistance (ODA). It plays a crucial role in fulfilling the UK’s obligations under the Paris Climate Agreement and advancing the Government’s wider ambition to establish the UK as a global leader in international climate action. In 2019, the previous Government announced its commitment to spend £11.6 … Show more

UK ICF was launched in 2011 as Official Development Assistance (ODA). It plays a crucial role in fulfilling the UK’s obligations under the Paris Climate Agreement and advancing the Government’s wider ambition to establish the UK as a global leader in international climate action. In 2019, the previous Government announced its commitment to spend £11.6 billion in ICF in the five years to 2025-26. The UK’s 2023 ICF strategy outlined four priority areas for the funding: clean energy; nature for climate and people; adaptation and resilience; and sustainable cities, infrastructure and transport. The Foreign, Commonwealth and Development Office (FCDO) and three other Government departments – the Department for Energy Security and Net Zero (DESNZ); Department for Environment, Food and Rural Affairs (Defra); and Department for Science, Innovation and Technology (DSIT) – have responsibility for funding and delivering ICF. While the UK remains committed to achieving its target by March 2026, major cuts to ODA by successive governments and competing demands on UK aid have exacerbated pressures. The Independent Commission for Aid Impact's (ICAI’s) 2024 rapid review of the UK’s current ICF portfolio highlighted that reaching the target is now dependent on changes to accounting methodology to dilute the ICF target. Specifically, it found that by reclassifying existing ODA as ICF, the UK has “moved the goalpost”, allowing more aid spending to be counted as ICF while not increasing the amounts which reach countries in need. Moreover, as at October 2025, the Climate Action Tracker (CAT), rated the UK’s ICF as “highly insufficient”. CAT has highlighted that the UK needs to “substantially increase” ICF to ensure that it is contributing an equitable share to global climate mitigation efforts. As the UK prepares to renew its commitment for the 2026-2030 ICF period, the Government faces challenges to ICF delivery in the context of shifting international priorities, funding restraints and changes in the humanitarian and development sector. This inquiry will consider the effectiveness of the UK’s current ICF portfolio in driving systemic change and crucially, how it can maximise value for money and impact by learning lessons and leveraging alternative routes to fulfil its future commitments despite reduced resources. Join the conversation on X using @CommonsIDC Show less