Developing Countries: Climate Change

(asked on 17th July 2019) - View Source

Question to the Department for International Development:

To ask the Secretary of State for International Development, what plans he has to investigate alternative sources of climate finance from (a) public and (b) private sources.


Answered by
Andrew Stephenson Portrait
Andrew Stephenson
Minister of State (Department of Health and Social Care)
This question was answered on 5th August 2019

Delivering the global transition to a low carbon economy will require unprecedented levels of investment from the public and private sectors. The Government is fulfilling our pledge to deliver £5.8 billion between 2015/2016 and 20/21. In addition to investing our own resources, the Government continues to press multilateral organisations to help countries tackle climate change through providing finance. The Multilateral Development Banks have an important role to play, and in the last year the World Bank has set new targets for the proportion of its finance which contributes to low carbon, resilient development. In 2018, 70% of World Bank projects include some climate benefits, up from 37% just two years ago.

Private finance is crucial, and the Government uses some of its climate finance to unlock investments from the private sector. To date, we estimate that the UK has leveraged £910 million of private investment. CDC and the Private Infrastructure Development Group (PIDG) have a key role in crowding in other investors and demonstrating that investment in low carbon, resilient development is possible. CDC has invested over $500 million in renewable power over the last 2 years, and PIDG $300 million.

The recently published UK Green Finance Strategy outlines how we will position the UK at the forefront of this global shift, catalysing the investment needed to transition to a net zero economy.

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