Question to the Department for Energy Security & Net Zero:

To ask His Majesty's Government which projects from the International Climate Finance fund will now receive a loan rather than a grant; and if the loans are not in the recipient country’s own currency, whether they will absorb the currency exchange rate risk for those loans.

The Government is switching £400 million of grant funding set aside for future international climate finance projects into loans, which could include projects such as the Tropical Forests Forever Facility. This provides more flexible ways to meet the Government’s international climate objectives.

The terms of any loan including the currency denomination and the treatment of any associated exchange rate risk, will depend on the final design of individual investments and will be considered in line with normal value for money and Official Development Assistance requirements.