Prime Minister Rishi Sunak announced at the G20 Leaders Summit in New Delhi that the United Kingdom will allocate USD2bn to the Green Climate Fund (GCF), marking the largest single funding commitment by the UK to address climate change, as reported by Reuters on September 10. The GCF is the world’s largest fund established under UN climate change negotiations to assist less affluent nations in achieving their carbon emission reduction goals, fostering cleaner energy sources, and adapting to a warming planet. This financial commitment is part of the UK’s broader pledge to allocate GBP11.6bn (approximately USD14.46bn) to international climate finance between 2021 and 2026. Notably, this represents a 12.7% increase over the UK’s prior contribution to the GCF for the 2020-2023 period.

There had been earlier speculation that the UK might retract its flagship climate funding promise, but the government refuted these claims. Officials explained that in order to meet the GBP11.6bn target by 2026, 83% of the total aid budget would need to be allocated to the international climate fund. The Group of 20 nations also issued a comprehensive declaration emphasizing their commitment to expanding sustainable finance to assist developing countries in reducing their carbon emissions. They underscored the need for USD5.8-5.9tr in funding for developing nations by 2030, especially to support their emission reduction efforts.

Sources:

https://www.reuters.com/world/uk/uk-commits-2-billion-un-backed-climate-fund-2023-09-10/