Recommendation 12

We urge the government to set geographic targets for the UK’s limited, highly concessional ICF resources to avoid deepening climate-vulnerable countries’ debt distress. Specifically, for LDCs, SIDS, LICs and other highly fragile countries, it should set a minimum share of the UK’s grant- based public ICF, to meet countries’ non-revenue generating needs, such as resilience building and adaptation. We urge the government to further write to this committee to clarify whether the converted ICF loans in question meet the Organisation for Economic Co-operation and Development concessionality requirements to remain classifiable as ODA. (Recommendation, Paragraph 46)