The Independent Commission for Aid Impact (ICAI) has raised concerns about the United Kingdom’s accounting methods for calculating its international climate aid. According to the ICAI review, the UK has included an additional £1.7 billion ($2.15 billion) towards its £11.6-billion climate finance target without providing any additional funds to vulnerable developing countries. Climate and development groups have accused the UK government of using accounting tricks to meet its climate finance goal for the period of 2021-2026, after reducing its overall aid budget due to pandemic-related fiscal pressures.
The ICAI assessment states that the UK government has “moved the goalposts” by changing the calculation method for meeting the target and including all eligible aid, such as a 30% share of humanitarian funding, in the 10% of countries most vulnerable to climate change. The ICAI also highlights that reaching the £11.6-billion goal will be challenging, with 55% of the amount still to be spent in the last two years of the commitment, including up to £3.8 billion due in the final year after a general election.
Last year, developing countries’ climate negotiators expressed disappointment over media reports suggesting that Britain would not fulfill its international climate finance pledge. The government denied these claims. Recently, confidential government documents made public during a court case revealed civil servants’ concerns about meeting the commitment.
The Foreign, Commonwealth & Development Office (FCDO), the ministry overseeing the aid budget, stated that the UK remains on track to meet its international climate finance commitment. However, aid groups and opposition politicians criticized the government’s accounting change, warning that it could undermine the UK’s international climate policy leadership and fail to provide sufficient support to those most affected by climate change.
The ICAI recommended that the government develop a detailed internal plan to meet the remaining portion of the target and produce an annual report to demonstrate progress. It also called for the integration of gender considerations into all climate finance and monitoring of climate finance for small-island developing nations, fragile and conflict-affected states, and least developed countries.
The review found that the accounting changes resulted in more of Britain’s climate aid being translated into loans rather than grants, which may not be suitable for the poorest and most vulnerable countries. The FCDO spokesperson stated that the government would respond to the recommendations in April.
Climate and development experts emphasize the importance of addressing the human cost of climate change and providing honest support to countries most affected by global warming. They urge the UK government to commit to new and additional climate funds in line with the urgency and scale of the climate crisis.
