Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what discussions officials in his Department are having with their counterparts in G7 countries on providing debt relief that supports climate and nature investments in developing countries.

Support for low-income countries and tackling climate change are key priorities for the UK as G7 and COP26 Presidents this year.

We are concerned by the debt vulnerabilities low-income countries face, which have been exacerbated by the Covid-19 pandemic. This month the G20, with full support from the G7, agreed to a six-month extension to the Debt Service Suspension Initiative (DSSI), which will continue to provide countries with additional fiscal space to respond to the crisis, and to free up resources to fund social, health, economic and climate measures. The G7 is also committed to the successful implementation of the Common Framework, which as we look to prioritizing a longer-term approach to addressing debt vulnerabilities, is the most effective mechanism to help countries achieve debt sustainability. The fiscal headroom provided by the Common Framework will allow low-income countries to spend on productive investments that are aligned with Sustainable Development Goals.

As part of our G7 and COP26 Presidency, we are seeking to improve the quantity, quality, effectiveness and accessibility of public climate finance and working to ensure that every financial decision – public and private – takes climate change into account. This will help to ensure that countries have the resources they need to reach their climate and nature goals.