COP29 and International Climate Finance

Bambos Charalambous Excerpts

Wednesday 30th October 2024 Westminster Hall

[Ellie Chowns]

Thank you, Sir Roger—I am still learning the ropes. I thank the Minister for coming to respond to the debate. It is my pleasure to introduce this debate on international climate finance, and I particularly appreciate the presence of so many colleagues, given that it is an extraordinarily busy day when, with the Budget, we are discussing domestic finance. I may have one or two words to say on that in a moment.

This debate is particularly important, because we are in the run-up to COP29—the conference of the parties—in Baku. It is supposed to be the finance COP, because it is crucial that we mobilise the necessary finance to tackle the global climate crisis. My purpose in securing this debate is to encourage the Government to put a bit more flesh on the warm words that we have heard so far. I recognise those warm words: for example, the Foreign Secretary saying that he wanted to put climate change “at the centre” of foreign policy—that is welcome—and the commitments from the Secretary of State for Energy Security and Net Zero on domestic investment. However, there is still much more to do.

I will give the Minister advance notice of the topics on which I would love her response. At COP29, we are looking for the international community to agree a new collective quantified goal for climate finance in the trillions of dollars, not the billions. That is the scale of the challenge that we face. Do the Government recognise that, and are they prepared to play their part in leading from the front to ensure that there is collective commitment to the goal?

International climate finance needs to tackle mitigation, as well as the urgent need to invest to reduce emissions of greenhouse gases. It needs to tackle adaptation, because an enormous amount of global warming is already built into the climate system through historical emissions. It also needs to tackle loss and damage: the costs that are already being borne particularly by the most vulnerable in the poorest countries, and are due to the historical debt that early industrialising countries built up through our burning of fossil fuels.

[Bambos Charalambous (Southgate and Wood Green) (Lab)]

For some low-income countries, one of the biggest factors is debt through private creditors, which I think is greater than the other debt that a lot of those countries owe. Does the hon. Lady agree that the matter of debt owed to private creditors must also be addressed to tackle the need for more funding for climate emergencies?

[Ellie Chowns]

The hon. Member raises an important point. There is a history of multilateral and bilateral efforts by Governments to tackle debt crises, and there is a role for government to play in regulating the private finance sector to prevent vulture finance, effectively, from preying on countries in that way. There is a key need for international co-operation to address that issue, because the lenders are from all over the world. If a country has debt relief through one process, it is crucial that it does not then find itself stuck in a debt crisis in relation to another lender. I would be glad to hear the Minister’s proposals on debt relief.

My third point is that it is essential that international climate finance comes largely in the form of grants, not loans. The UK Government generally have a good record: roughly 85% of the climate finance we have committed has been through the form of grants, and I believe that commitment is in place until 2026. Will the Minister commit to that figure remaining a floor? Will she seek to increase it, so that the vast majority of climate finance is provided in such a way that it does not build up debt repayment problems for the future?

International Engagement

Bambos Charalambous Excerpts

Monday 28th October 2024 Commons Chamber

[Anneliese Dodds]

I am very grateful to the hon. Lady for her remarks and, above all, for her work with the Commonwealth Parliamentary Association. Indeed, I commend all Members across the House who are engaged with that very important organisation, which brings parliamentarians together.

The Prime Minister’s resolution to support the Commonwealth could not be clearer. He is the first sitting UK Prime Minister to visit a Pacific island country. That is something we should all celebrate, rather than criticise. That commitment is very clear indeed. I had the absolute privilege of meeting the Prime Minister of Samoa when I was in New York for the UN General Assembly. I was very excited then to hear her talk about how the Commonwealth Heads of Government meeting was likely to run. It was a very successful meeting. We commend her and the whole Commonwealth family on it. I know the Prime Minister is very much of the same mind.

I associate myself with the hon. Lady’s remarks in thanking Baroness Scotland for her leadership, and in commending the wise words of His Majesty, which are always imbued with wisdom. That approach is the one the new UK Government are taking. We believe it is important to focus on the future. That is why, as I said a few moments ago, we prioritised focusing on economic development, young people’s employment, women’s economic empowerment, which is so often the key to growth, and action on the climate and nature crisis. That is what our Commonwealth friends are saying that they want to see in the future. We will stand with them on that, because it is to the mutual benefit of us all.

The hon. Lady asked about the Budget. The UK Government’s position is very clear: we do not want a return to the kind of turbulence that we saw over the past 14 years. Very sadly, we saw in-donor refugee costs in particular rising in a way that was completely uncontrolled, with programmes cut in half. That is not the current UK Government’s approach. We will ensure we have a properly planned approach to international development, because failing to do that is to let down our international partners.

The hon. Lady asked about our position on the UN Security Council. We have been very clear that we need to ensure there is better representation of global south partners, but we will always take our leadership responsibilities on the UNSC very, very seriously indeed. We have been doing that since coming into government.

The hon. Lady asked about Myanmar and abuses of human rights. Again, we have been very clear on the need for action to be taken. We have communicated that many times. We are very concerned about the position of those who have been impacted.

The hon. Lady asked specifically about language in the communiqué that was agreed at the conference about reparative justice. Just to be crystal clear, I am sure everyone in the House would agree that the slave trade was abhorrent. We condemn it, just as previous Labour Governments have done. As the Prime Minister made clear in Samoa, it is important that we start from there, but it is also important that we are just as clear that there has been no change in our policy on reparations. The UK does not pay reparations—I really could not say that more emphatically—and I know she is aware that that is the position of the UK Government.

Finally, the hon. Lady asked about IDA. I will finish on that, Madam Deputy Speaker. The previous Government were not clear about their approach to IDA replenishment. The new Government have been clear. The Prime Minister said at the UN General Assembly that the UK will increase its contribution and we urge other countries to do the same.

[Bambos Charalambous (Southgate and Wood Green) (Lab)]

I welcome my right hon. Friend’s statement. She touched on IDA. IDA needs a minimum of $27 billion from donor countries to help countries at higher risk of debt distress. Can she further elaborate on the discussions she had with international counterparts on IDA replenishment, ahead of IDA21 in early December this year?

[Anneliese Dodds]

I am very grateful to my hon. Friend for raising this issue. IDA is a critical part of the World Bank’s architecture. It is the fund that is focused on the very poorest countries that are most in need of support, but also those which can grow very quickly when they receive that support economically. It is extremely good value: every $1 invested in it results in $3 to $4 for those in the poorest countries. The UK has been clear, as I mentioned, that we will increase our contribution. We are urging others to do the same. Denmark and Spain said that they would do just that, which I think is a vote of confidence in IDA.