Climate Finance: Tackling Loss and Damage

Clive Betts Excerpts

Tuesday 5th September 2023 Westminster Hall

[Several hon. Members rose—]

[Mr Clive Betts (in the Chair)]

Order. We have three Members indicating that they wish to speak in the debate. I will start up the wind-ups just before 10.30 am, so that leaves around 10 minutes for each Member who wishes to speak.

--- Later in debate ---

[Dan Carden (Liverpool, Walton) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Betts. I congratulate the hon. Member for Dundee West (Chris Law) on securing this debate and his excellent contribution. I also congratulate the Chair of the International Development Committee, my hon. Friend the Member for Rotherham (Sarah Champion), and my hon. Friend the Member for Brentford and Isleworth (Ruth Cadbury) on their powerful contributions.

This is an important debate. In March this year, I was proud to be elected president of the Forum of Young Parliamentarians of the Inter-Parliamentary Union, which is like a United Nations of legislatures. It represents 180 national Parliaments around the world. I vow to use the position to make young people’s voices heard on the world stage. I hope my contribution will be a small part of fulfilling that promise, because young people will be not only the victims of climate change but the greatest contributors to action against it. It is a profound injustice that those least responsible for causing the climate emergency will suffer the worst of its consequences. At the same time, debt burdens and increased food and energy prices mean that many climate-vulnerable countries have less fiscal capacity to deal with those consequences—for adaptation, mitigation, loss and damage, or the resulting harms to health, the environment and ways of life.

I welcome the confirmation, in an answer to my written question, that it remains the Government’s intention to deliver £11.6 billion of UK international climate finance between April 2021 and March 2026. I hope, however, that the Minister will stand up to those in his own party who would like to see the UK abandon that commitment. I urge him to take the opportunity today to clarify how the UK will meet its commitments within the existing timeframe, including front loading climate finance and showing how that climate finance will be new and additional.

To meet our commitments, however, we need to go further. We must properly tax the big polluters; we know that fossil fuel corporations knew the harms their products were causing. They covered up the science for years, funded disinformation and spread doubt, delaying action that could have saved countless lives. Those very same companies are currently raking in obscene, record-breaking profits, predominantly due to the effects of the war in Ukraine. Polluters must begin compensating for the destruction they have caused to our environment and to the lives of the people who have done the very least to cause the climate emergency.

Research from Greenpeace has shown that the fossil fuel industry made enough in profits between 2000 and 2019 to cover the costs of climate-induced economic losses in 55 of the most climate-vulnerable countries nearly 60 times over. It is the responsibility of the richest countries, which set global tax rules, to make that a reality. The importance of doing so could not be clearer. Estimates have shown that the world’s most vulnerable countries can expect to suffer an average GDP hit of 19.6% by 2050 and of 63.9% by the beginning of the next century. Even if global temperature increases are limited to 1.5 °C, vulnerable countries face an average GDP reduction of 13.1% by 2050 and 33% by 2100.

Even if 1.5 is kept alive, a properly functioning loss and damage mechanism is urgently needed. Failure to do that will be felt particularly acutely across the continent of Africa, with eight of the top 10 worst affected countries being there. In the first six months of 2022, there were 119 climate and weather related events in developing countries, causing £26.2 billion worth of losses in the countries affected. That shows the scale of the challenges we face as part of an international community.

My colleagues have made the case for a moral responsibility for loss and damage. It is also in our economic self-interest, however, to take greater action now. We must build on the breakthrough agreements of last year’s COP. Now is the time to operationalise the loss and damage fund—to put the money in and to get it working—in order to direct finance to those communities with the greatest need. I will continue to make those calls, alongside colleagues, and I will be proud to make them at COP28, which I hope to attend in my new role later this year. The Minister should rest assured that young people will continue to make those calls until they are listened to.

[Mr Clive Betts (in the Chair)]

We now move on to the Front Benchers. I think they may have worked out that there is more time than their allotted 10 minutes, although they are not required to take longer and I would like the mover to have a bit of time at the end to wind up.

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[Fabian Hamilton]

I thank my hon. Friend for that intervention, because that is exactly the point. I am now privileged to have two grandsons, the youngest of whom is three and a half years old. He is not quite knowledgeable about climate change yet, but the seven-year-old is. It is something they study at school, and my hon. Friend is absolutely right. At every primary school that we visit—we all do it—the first thing they raise is: “What are you going to do to stop this planet becoming uninhabitable because of our own actions and history?” We have to answer to them. They will inherit the Earth, not us.

My hon. Friend the Member for Liverpool, Walton went on to say, as other Members did, that Africa will be the biggest continental victim of climate change globally, and—as others also said—that loss and damage support is in our own self-interest.

I again thank the hon. Member for Dundee West for securing this debate. As we know, the climate emergency is the greatest challenge the world faces. Where are the Government Members, who should also be talking about this? The UN has warned that our planet is on course for a catastrophic 2.8° of warming, in part because the promises made at international climate negotiations have not been fulfilled. As we know, this would have devastating consequences for our natural world, and dangerous and destabilising effects on all countries, not least, as I think the hon. Member and my hon. Friend the Member for Rotherham mentioned, many of the islands of the Caribbean. Indeed, the CARICOM ambassadors have lobbied me as shadow Minister for the Caribbean, which is one reason I am winding up on behalf of the Opposition today.

As we know, 2.8° of warming would usher in an era of cascading risks, as the uncontrolled effects of global heating result in more frequent extreme heat, sea level rises, drought and famine. We have seen devastating examples of extreme weather this summer, as heatwaves and wildfires have caused devastation and loss of life. As has been said this morning, this will end up hitting us in the UK as well. We are seeing its effects already, with floods and heatwaves becoming the norm, not the exception. As the SNP spokesperson, the hon. Member for Glasgow North (Patrick Grady), said just now: look outside; it is quite unseasonable. I returned from a holiday in Majorca on Friday. It is warmer here today than it was when we left Majorca. That is quite wrong.

This will end up, of course, hitting us in the UK, too. We are seeing the effects already. Global heating will hurt us all. But the truth is that developing countries and people living in poverty are the most exposed to the worst consequences of the climate emergency. At COP27 in Egypt last year, the issue of loss and damage was front and centre of the discussions. Like the UK Government, we supported the recognition of the issue of loss and damage at COP27. The agreement to create a new fund was an important step forward in recognising the consequences of the climate crisis for the world’s most climate-vulnerable countries.

This is a matter of solidarity, and the reality is that those most likely to be affected by climate change are the least able to afford to adapt to it. Every speaker today has made that point. The UK Government already support poorer countries to cut emissions and to adapt to climate change. Loss and damage, however, is about coping with its disastrous effects. This is not about mitigating or preventing; it is about helping the poorest countries to cope with the effects that have already happened.

Supporting poorer countries is not only the right thing to do, but in our self-interest. We need all countries to act on climate and reduce their emissions and the destabilising effects of climate breakdown, which will end up coming over here, including, for example, in the risk of climate refugees, as we said.

But on the necessary actions to keep global warming to 1.5°, yet again we hear the unmistakable sound of the can being kicked down the road. As a result, that is now at grave risk, as the UN has said. It appears that even those on the Government Benches do not trust their Government to act on these issues. On 30 June, the Minister for the International Environment, Zac Goldsmith, resigned, accusing the Prime Minister of being “simply uninterested” in climate action and the environment. We can see why he might think that.

It is now 14 years since a promise of $100 billion of finance was made to developing countries to help them to fight the climate crisis. There is growing recognition of the urgent need to reform how multilateral development banks and the international finance system can support climate action and unlock resources. Earlier this year, there was a major summit of world leaders on a new global financial pact, hosted by President Macron, but the Prime Minister chose not to bother turning up.

We now hear that the Prime Minister is not even planning to attend the UN General Assembly this year, where climate change will be top of the agenda, as it should be. That is a lamentable and short-sighted snub, an illustration of how the Government are squandering Britain’s potential for international leadership. That comes as the Government’s statutory climate advisers warned this month that the Government are missing their targets on almost every front. They said:

“The UK has lost its clear global leadership position on climate action.”

The Minister of State, Foreign, Commonwealth and Development Office, the right hon. Member for Sutton Coldfield (Mr Mitchell), has committed to publishing this year how the Government will meet their £11.6 billion climate finance target. During recent FCDO questions in the House, he said that he would do so “probably in September”. I therefore press the Minister present today on whether he is still committed to that and whether he will publish the ODA allocations for international climate finance in 2022-23 and 2023-24.

We need a Government who can step up on climate action, delivering cheap, home-grown zero-carbon power at home so that we have the credibility to pressure other countries to fulfil their obligations and play their part. A Labour Government would put addressing the climate crisis at the heart of our foreign policy—every single foreign policy. Central that will be Labour’s proposed clean power alliance of developed and developing nations committed to 100% clean power by 2030, just over six years away. That will be a positive version of OPEC, positioning the UK at the heart of the single most significant technological challenge and opportunity of the century. Alongside that, we will push for climate action to be recognised as the fourth pillar of the UN, increase our climate diplomacy in key states and work with international partners to press for a new law of ecocide to prosecute those responsible for severe, widespread or long-term damage to the environment.

For the sake of every human being on the planet, all the creatures that live on this planet and all of our children, including my two grandsons, Britain should never be a country that absents itself from the world stage, particularly not when it comes to the climate crisis—the biggest long-term issue we face. A Labour Government would certainly once again lead at home and abroad.

[Mr Clive Betts (in the Chair)]

I call the Minister to respond. He has a reasonable amount of time, but would he leave at least a couple of minutes at the end for the mover to respond?