The Evolution of UK Climate Finance

This policy paper evaluates the UK’s updated approach to international climate finance (ICF), which incorporates a £6 billion three- year official development assistance (ODA) target with a new £6.7 billion non-ODA target and a commitment to improve coherence between the UK’s ODA and non-ODA levers. Using publicly available information, we examine the overall levels and focus of the finance. We find overall ICF levels to remain broadly stable over the coming period amid rising needs, with a significant rise in the share of non-grant finance with limited benefits for least developed countries. We note a number of delivery risks and highlight six recommendations with a focus on opportunities to improve coherence, focus, impact, and ambition of the UK’s climate finance strategy.