Recommendation 37

In September 2019, the Government announced that it would double the amount of UK ICF to £11.6 billion for the period of 2021/22–2025/26.73 The Government referred to UK ODA as a means to increase its impact as a “force for good” in the Integrated Review.74 On 13 July 2021, however, the House of Commons backed the Government’s decision to reduce UK ODA to 0.5% of GNI.75 While UK ICF will be protected from cuts, contributors told us that they were concerned about the consequences of the cuts on climate action. The countries which are most in need of development finance are also most at risk of the impacts of climate change.76 In order to achieve the best possible results for vulnerable groups in terms of climate change and development, the UK should at least match the 0.7% of GNI,77 and in effect “lead, not retreat”.78 A ringfencing of UK ICF amid a cut to UK ODA is considered a mismatch resulting in a less comprehensive response to the climate emergency.79 Indeed, speaking for many contributors to this inquiry, one witness asked: What is it [climate finance] going to influence if the development finance is not there to address development deficits?80 Access to funds The difficulty has been access. The money is there and we hear from different Governments, “But we did provide the money.” No, to write a cheque and put it in the World Bank or the GCF is not enough. You have to guarantee access so that we can get ready on time. H.E. Diann Black-Layne, Lead Negotiator on Climate Change, Alliance of Small Island States81