PARLIAMENTARY DEBATE
COP29 and International Climate Finance - 30 October 2024 (Commons/Westminster Hall)
Debate Detail
That this House has considered COP29 and international climate finance.
Thank you very much for calling me to speak—do I refer to you as Mr Speaker?
This debate is particularly important, because we are in the run-up to COP29—the conference of the parties—in Baku. It is supposed to be the finance COP, because it is crucial that we mobilise the necessary finance to tackle the global climate crisis. My purpose in securing this debate is to encourage the Government to put a bit more flesh on the warm words that we have heard so far. I recognise those warm words: for example, the Foreign Secretary saying that he wanted to put climate change “at the centre” of foreign policy—that is welcome—and the commitments from the Secretary of State for Energy Security and Net Zero on domestic investment. However, there is still much more to do.
I will give the Minister advance notice of the topics on which I would love her response. At COP29, we are looking for the international community to agree a new collective quantified goal for climate finance in the trillions of dollars, not the billions. That is the scale of the challenge that we face. Do the Government recognise that, and are they prepared to play their part in leading from the front to ensure that there is collective commitment to the goal?
International climate finance needs to tackle mitigation, as well as the urgent need to invest to reduce emissions of greenhouse gases. It needs to tackle adaptation, because an enormous amount of global warming is already built into the climate system through historical emissions. It also needs to tackle loss and damage: the costs that are already being borne particularly by the most vulnerable in the poorest countries, and are due to the historical debt that early industrialising countries built up through our burning of fossil fuels.
My third point is that it is essential that international climate finance comes largely in the form of grants, not loans. The UK Government generally have a good record: roughly 85% of the climate finance we have committed has been through the form of grants, and I believe that commitment is in place until 2026. Will the Minister commit to that figure remaining a floor? Will she seek to increase it, so that the vast majority of climate finance is provided in such a way that it does not build up debt repayment problems for the future?
At COP28 last year, the stocktake found that the world is off track to meet the 1.5° target. In itself, that commits us to serious effects already. In real life, we see increasing drought and wildfires, and the increasing frequency and severity of flooding in our own country. We know that climate change is happening. We have to do everything possible domestically to tackle it.
My fourth point is that international climate finance must be additional to aid. In recent years, we have seen not only a shameful, in my view, reduction in the overseas development assistance budget—I strongly urge the Government to bring that back up to 0.7% as soon as possible—but the wrapping of all sorts of other costs into the ODA budget. A real risk, if we put international climate finance into the ODA budget, is less money to spend on health, education and all those policies that are so essential to tackling international poverty and inequality. International climate finance must be treated separately from ODA.
My fifth point is about where the money should come from. Again, that is an important topic on Budget day, and indeed I will digress slightly to comment on the Budget. One policy we have seen today is a retention of the fuel duty freeze, which is effectively a subsidy for fossil fuels. That is clearly incompatible with the Government’s rhetoric on climate change. We should lead the way as a country in pushing for “polluter pays” taxes to generate the finance necessary to meet what I hope will be strong and ambitious international climate finance goals, because—to recap—this is urgent. 2024 is on track to be the hottest year ever on record. This change is going only one way. I do not know how many economists and scientists we need to tell us that the investment must come early—as soon as possible—because the transition will get more and more expensive. The longer we leave it, the costlier it will be, not just financially, but in terms of the effect on human lives. COP29 is a crucial moment in the international climate negotiations.
I very much look forward to hearing from the Minister how she will ensure that the UK plays a leading role, putting our money where our mouth is and doing everything possible to influence international partners to ensure that climate finance is sufficient to address the challenge that we face.
This Government are getting on with reconnecting Britain to the world and modernising our approach to international development in a spirit of genuine partnership and respect, as I set out in a speech at Chatham House a couple of weeks ago. That speech built on the Foreign Secretary’s lecture at Kew Gardens, in which he reiterated our view that action on the climate and nature crisis must be at the heart of everything that we do. I am grateful to the hon. Member for North Herefordshire for making reference to that; it is a genuine and important commitment. We believe that action on the climate crisis is critical to grow our economy and bring opportunities to people across our country and globally, and we know that our partners around the world share that ambition. When I was in Indonesia, for example, I was pleased to sign an agreement on critical minerals with the Government there, working on the climate crisis and green growth with them. We have a strong shared agenda, and we need to solidify that partnership globally.
We are clear that situations of extreme humanitarian need globally are so often driven by conflict and climate crisis—in fact, they are often driven by the two intertwined. I unfortunately saw that for myself in South Sudan, at the Bentiu camp for internally displaced people. People escaping the horrific civil war in Sudan are managing to make it to the IDP camp, but they are surrounded by floodwater. It is now a permanently flooded area, making an already horrendous situation worse. We need to recognise the fundamental impact that the climate crisis is having right now, as the hon. Member for North Herefordshire rightly underlined.
My hon. Friend the Member for Chesterfield (Mr Perkins) rightly mentioned the COP system. I will come to the climate COP in a moment, but the UK team is currently hard at work at the biodiversity COP—COP16—in Cali, Colombia. They are working with partners from around the world, from indigenous people to the presidency of next year’s climate COP in Brazil.
I am very pleased to be heading to Baku for the climate COP alongside the Prime Minister and the Foreign Secretary, who attended previously when in opposition. As well as coming forward with our own ambitious, nationally determined contribution for the UK at COP29, we are determined to support others to scale up their ambition and action. That includes initiatives such as the global clean power alliance, which the hon. Member for North Herefordshire may have heard mention of. That is a strong commitment from the new UK Government. We are determined to deliver greater political momentum.
The hon. Member for North Herefordshire talked about the relationship between domestic and international policy. For the first time, the UK is able to speak with credibility on this because of the new Government’s stating that we will not grant new oil and gas licences, removing the ban on onshore wind and introducing other measures. It shows that we are not just talking the talk—we are walking the walk. That kind of credibility is critical in these negotiations.
When speaking with our friends based on small islands and in fragile and vulnerable states, such as many of those the UK Government met with at the Commonwealth Heads of Government meeting in Samoa, we hear very loudly and clearly how difficult it is for them to access the finance that they need, especially climate finance. Very little of it is getting to those who need it, particularly fragile and conflict-affected states. The UK is determined to work with our partners to change that. I have prioritised, including at the World Bank annuals last week, trying to push hard for sources of climate finance and adaptation finance to be available. I am grateful to the hon. Member for Strangford (Jim Shannon) for mentioning the role of farmers. The proportion of climate finance that reaches farmers in the most fragile and conflict-affected states is minuscule, particularly for adaptation. That must change urgently.
I agree with the hon. Member for North Herefordshire that we must increase the level of dedicated climate finance from all sources across the causes and impacts of the climate crisis. We are determined to agree an ambitious new collective quantified goal; that is absolutely pivotal to our negotiations and vital to maintaining the global consensus of the Paris agreement and keeping 1.5° of warming within our reach. The UK is working extremely hard on this. The Department I am based in and the Department for Energy Security and Net Zero are working closely together and with our new climate and nature representatives. We have been carrying that forward at every opportunity.
I go back to the fact that it has to be a collectively agreed goal, but the hon. Member could not see a team working harder on this matter. We want to ensure that we get to an agreement. Of course, many forces do not particularly want to see the global north agreeing with the global south on this—we believe we can come together. In fact, at the Commonwealth Heads of Government meeting we saw the agreement within the Commonwealth around plastics pollution. We need to take that same spirit forward when it comes to this goal.
For our part, as well as co-chairing the global green climate fund, we are working towards making good on the UK’s pledge to get help to those who need it. We want robust roles to be agreed for article 6 on how countries co-operate to reduce emissions. We need real follow-through from the global stocktake on commitments such as tripling renewable power and doubling energy efficiency globally by 2030, and we need implementation of the national adaptation plans as we scale up finance in support. We have committed £100 million to the taskforce on access to climate finance that the UK co-chairs with Rwanda, and we are working with the World Bank and the board of the new fund for those facing devastating loss and damage; the hon. Member was right to mention that as being important.
There is a huge amount to do. A few days ago, as my right hon. Friend the Chancellor headed to the International Monetary Fund, I was at the World Bank in Washington pressing it to shoulder more risk so it can do more to unlock hundreds of billions of dollars and help the poorest and most vulnerable. To go back to the point mentioned by my hon. Friend the Member for Southgate and Wood Green (Bambos Charalambous), that has to include unlocking private finance, which is incredibly important, and we need to see innovation, too.
The hon. Member for North Herefordshire rightly referred to the fact that we need to be front-loading this funding right now. There is interesting innovation going on with some of the multilateral development banks, and we are pushing them to deliver on making that finance available as quickly as possible; when it comes to mitigation in particular, now is the time we need to be acting. We are championing financial innovation, including insurance and guarantees. Under the new Government, the UK has been pushing particularly for climate-resilient debt clauses.
I will finish on that subject of debt, which I know is of huge concern to many, and my hon. Friends the Members for Southgate and Wood Green and for Bishop Auckland (Sam Rushworth) were right to mention it. We have been pushing the G20 process for more action on debt. It is positive to see Zambia going through that process, but we need to see more action. That is why we are pushing hard on this and in the Paris club because it cannot be acceptable that we see such high levels of spending on debt rather than on health, education and, indeed, the kind of issues we are talking about.
Now is the time for the global action that the hon. Lady rightly focused on. I was in New York for the UN General Assembly with some representatives of small island developing states, which are particularly hard hit. They said that their slogan used to be, “1.5 to stay alive,” but it is becoming, “1.5 and we might survive”. This really is urgent, and the new UK Government are determined to do all we can to exercise leadership, working in partnership with others.
Question put and agreed to.
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