UK MPs accuse government of cutting corners on climate finance

The UK government is cutting corners on its climate aid commitments, a parliamentary committee has warned. The criticism comes as a record-breaking 'super' El Niño weather event begins to intensify extreme weather and humanitarian crises worldwide.

The International Development Committee (IDC) said reductions to the UK's aid budget have damaged its ability to meet climate finance obligations in a meaningful way. The cuts will result in the UK's bilateral aid relationship essentially ending with a large group of countries, undermining support for some of the world's poorest and most climate-vulnerable nations.

Aid cuts and creative accounting

MPs criticised changes to accounting methods that allow existing humanitarian aid to be counted towards the UK's climate spending targets. The committee's report on International Climate Finance finds the government has prioritised maintaining headline spending figures over delivering genuine climate and nature outcomes. This stream of foreign aid is obligated under the terms of the 2015 Paris Agreement.

Sarah Champion, chair of the committee, said climate change is swiftly reversing development progress in vulnerable countries. "Rather than striving to deliver genuine climate and nature outcomes, the government has been cutting corners to maintain headline climate spending commitments," she stated. Champion warned El Niño could worsen water insecurity and push more people into acute food shortages.

Financial commitments and shortfalls

The government has committed to spending around £6 billion of foreign aid on climate finance over the three financial years from 2026-27 to 2028-29. This represents a cut from the previous contribution of £11.6 billion from the aid budget over the five years from 2021/22 to 2025/26.

The government says it intends to keep increasing climate finance year-on-year by leveraging more private capital. However, aid groups warn it is extremely difficult to develop a business case to drive private investment into climate adaptation measures in the world's poorest regions.

Catherine Pettengell, executive director of the Climate Action Network UK, said current commitments fall far short of the UK's fair share. Her network represents 45 civil society organisations working on climate. Today's IDC report must serve as a wake-up call to this new government on the extent to which UK credibility and commitments have been eroded and undermined by cuts and creative accounting, she added.

Impacts and government response

The Independent found aid cuts mean at least one project funding climate adaptation in Bangladesh has ended early. The implementing partner warned this has seriously undermined their community work. The committee's findings coincide with projections that this year's El Niño could push 50 million more people into life-threatening acute hunger.

A UK government spokesperson said climate change and nature loss pose a significant threat to global security and prosperity. The spokesperson stated the UK is leading action on climate and nature, and prioritising climate finance in its aid budget. The government says programmes funded with UK climate finance have supported more than 137 million people to cope with climate impacts and provided 89 million people with improved access to clean energy.

The International Development Committee recommended ministers use additional public and private finance to compensate for aid budget constraints. This would ensure the UK meets its climate commitments under the Paris Agreement. The government says its international work to reform the global financial system will make investments work harder and empower countries to finance their own development goals.