Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what plans her Department has to ensure the UK's international climate finance contributions are provided in the form of grants rather than loans.
The Government remains committed to spending 0.3% of Gross National Income on Official Development Assistance. Under ICF3, around 89% of climate finance was delivered through grants. We expect to continue to deliver the large majority of the UK’s ICF ODA as grants.
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 subject to the Fund’s finalisation, completion of our due diligence checks and our conditions being met. Funds that flow from the TFFF to forest countries will not have to be repaid.