COP 26

Lord Udny-Lister Excerpts

Tuesday 25th May 2021 Lords Chamber

[Lord Goldsmith of Richmond Park (Con) [V]]

At the G7 just a few days ago, we were able under UK leadership to secure commitments around phasing out fossil fuel subsidies internationally. We also secured commitments from some members of the G7, as well as countries not part of the G7, that we will use our collective leverage to ensure that the multilateral development institutions align their policies and portfolios not only with Paris but with nature. We know that there is not enough public money in the world to deliver the solutions we need for either climate or nature, so we need private finance and we need the multilateral institutions to step up much more than they have so far.

[Lord Udny-Lister (Con)]

My Lords, does the Minister agree that, after setting carbon targets and the road map, the next most important policy area is finance and, in particular, the development of green finance in all its different forms? This must be part of the investment criteria for government and business; unless it is achieved, those targets will not be met.

[Lord Goldsmith of Richmond Park (Con) [V]]

The noble Lord is right. Of course, developed countries need to make good on their promise to mobilise at least $100 billion in public finance to tackle climate change and a big chunk of that needs to be spent on nature-based solutions, but we need international financial institutions to play a part as well. We need to unleash trillions in addition to that in private sector finance. As part of this, we are doing what we can to complete negotiations successfully around Article 6, which would pave the way to functioning, high-integrity carbon markets as just one solution. Finally, Governments need to shift the subsidies, which dwarf anything that is available via aid agencies, and ensure that instead of funding destruction, as most of them currently do, they fund renewal and sustainability.