Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, further to the No10 press release, Cheaper travel for millions with a third off fares, of 22 July 2026, which international climate finance projects will have their funding converted into loans to fund the £454 million; whether the borrowing will core on the PSBR; and over what period the loans will be paid back.

The Government is switching £400 million of grant funding set aside for future international climate finance projects into loans, providing more flexible ways to meet our international climate objectives.

This will support Government’s intention to invest £400m of loan finance into the Tropical Forests Forever Facility, a new global forests fund which aims to preserve tropical forests, support forest communities and protect critical global ecosystems. Funds that flow from the TFFF to forest countries will not have to be repaid.

As we are investing in the form of a repayable loan, it is not funded through additional borrowing. The terms of this loan is subject to the Funds finalisation, completions of our due diligence checks and our conditions being met, in line with normal value for money and Official Development Assistance requirements.

We are continuing to engage with HMT on savings.