Question to the Foreign, Commonwealth & Development Office:

To ask the Secretary of State for Foreign, Commonwealth and Development Affairs, whether he is taking steps he to ensure that his Department’s work to obtain private finance for green technology and energy projects in developing countries does not create unsustainable levels of sovereign debt in those countries.

FCDO works with developing countries to raise affordable private and sovereign finance to help close the $2.4 trillion per year by 2030 country climate finance gap for developing countries. This includes working with countries to raise private capital through green, local currency bonds.

Through the Private Infrastructure Development Group (PIDG) developing countries receive technical assistance, local guarantees and concessional finance to help develop green infrastructure.

At COP27 UK Export Finance launched climate resilient debt clauses which suspend debt repayments when countries face climate shocks. FCDO works with countries at risk of sovereign debt distress to improve debt reporting and management.