COP29 and International Climate Finance

Jim Shannon Excerpts

Wednesday 30th October 2024 Westminster Hall

[Ellie Chowns]

Absolutely. The hon. Member makes a very important point, which relates to the one I made at the beginning: we cannot avoid the fact that we in the UK have an historical responsibility to take action on climate finance. We need to ensure that we are not storing up further problems for the future by providing climate finance in the form of loans, which make things harder for the poorest people in the poorest countries. Frankly, it is a scandal that, as he says, so many people in the poorest countries find that their Governments are spending more on debt repayments than they are on investment in crucial health and education, which build what we sometimes call the human capital that is so essential to sustainable development in such countries. I very much hope that the Government will lead on this issue and ensure that climate finance is in the form of grants—all of it, if possible, but at least the very largest proportion of it.

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Lady on securing this debate. I spoke to her beforehand, and the subject is incredibly important. According to international climate finance reports, 14 programmes have been initiated to support farmers across the globe to improve their access to clean energy. As she rightly said, that is an objective not only internationally, but at home. Does she agree that the Government must do more to assist farmers domestically across the United Kingdom of Great Britain and Northern Ireland with incentives for greener and cleaner farming?

[Ellie Chowns]

I thank the hon. Member for making that point. This debate is on international climate finance, but I am happy to address his question about the interaction between domestic policy and the climate crisis that we face. I was disappointed not to hear in the Budget statement any commitment on climate or nature. Indeed, reading the detail on page 37 of the Budget, we will have a real-terms 2% decrease in the Department for Environment, Food and Rural Affairs budget over the next two years. Investment, however, is vital. Nature-friendly farming in the UK is one of the crucial ways to reduce our own emissions and get a little closer to doing our fair share of mitigating climate change. Another issue close to my heart is the role of DEFRA in tackling water pollution, and again we are not seeing that. I agree that investment domestically in nature-friendly farming and environmental policies is crucial. We have to put our money where our mouth is, and we have to ensure that we ourselves are on track to meet our climate goals.

At COP28 last year, the stocktake found that the world is off track to meet the 1.5° target. In itself, that commits us to serious effects already. In real life, we see increasing drought and wildfires, and the increasing frequency and severity of flooding in our own country. We know that climate change is happening. We have to do everything possible domestically to tackle it.

My fourth point is that international climate finance must be additional to aid. In recent years, we have seen not only a shameful, in my view, reduction in the overseas development assistance budget—I strongly urge the Government to bring that back up to 0.7% as soon as possible—but the wrapping of all sorts of other costs into the ODA budget. A real risk, if we put international climate finance into the ODA budget, is less money to spend on health, education and all those policies that are so essential to tackling international poverty and inequality. International climate finance must be treated separately from ODA.

My fifth point is about where the money should come from. Again, that is an important topic on Budget day, and indeed I will digress slightly to comment on the Budget. One policy we have seen today is a retention of the fuel duty freeze, which is effectively a subsidy for fossil fuels. That is clearly incompatible with the Government’s rhetoric on climate change. We should lead the way as a country in pushing for “polluter pays” taxes to generate the finance necessary to meet what I hope will be strong and ambitious international climate finance goals, because—to recap—this is urgent. 2024 is on track to be the hottest year ever on record. This change is going only one way. I do not know how many economists and scientists we need to tell us that the investment must come early—as soon as possible—because the transition will get more and more expensive. The longer we leave it, the costlier it will be, not just financially, but in terms of the effect on human lives. COP29 is a crucial moment in the international climate negotiations.

I very much look forward to hearing from the Minister how she will ensure that the UK plays a leading role, putting our money where our mouth is and doing everything possible to influence international partners to ensure that climate finance is sufficient to address the challenge that we face.