UK calls for “ambition” on COP29 climate finance goal but won’t talk numbers

Britain’s new foreign minister has called on governments to set an “ambitious” new goal for climate finance to help developing countries at the COP29 UN climate summit, but declined to discuss how much it should be.

In his first major speech in government, after the Labour Party won power in July, Foreign Secretary David Lammy told journalists, diplomats and green campaigners at London’s Kew botanical gardens that, at COP29, the UK will “push for the ambition needed to keep 1.5 alive”. That refers to a global warming limit of 1.5 degrees Celsius agreed by governments, which is set to be exceeded unless climate action is ramped up dramatically.

However, when asked by Climate Home, Lammy declined to say how high the UK government thinks the new global finance goal should be – or when it will put forward its proposal. “I can’t make announcements here because if I did, I’d go back to a storm with [UK finance minister] Rachel Reeves,” he said.

The new collective quantified goal (NCQG) will determine how much finance should be mobilised for developing countries each year starting from 2025. It is the main outcome expected from COP29 in Baku in November. The current goal of $100 billion per year is widely viewed as inadequate and was only met two years late in 2022.

Developing-country negotiators have complained that rich nations are refusing to discuss the size (or quantum) of the NCQG. Developed countries have instead pushed to expand the list of contributors to the goal to include wealthier, higher-emitting developing countries like China and Saudi Arabia.

Developing-country “frustration”

“It’s been frustrating for most of the developing-country negotiators,” Kenyan climate finance negotiator Julius Mbatia told journalists on Monday. He accused developed countries of trying to “dodge” their mandates and responsibilities and “avoid committing to a scale that they are actually not committed to deliver politically”. “It’s a tactic,” Mbatia said. “Unfortunately, it’s being played at the worst moment when we are talking about meeting the needs and priorities of vulnerable countries.”

Melanie Robinson, global climate director at the World Resources Institute, said on Tuesday the context has changed since the current finance goal was set 15 years ago, as the impacts of climate change have worsened. All countries now need to get onto a net-zero, climate-resilient economic development pathway that benefits everyone and restores nature, she said.

“We know just how huge that challenge is for all countries,” she added. “But while developed countries and China can probably find the finance to make that transition themselves, we know that developing countries will need international finance.”

Asked about developing countries’ frustrations, Lammy said: “I recognise the disjunct between rhetoric sometimes in the Global North and the real pressing needs that exist in the Global South as they look to see is that rhetoric going to be actually matched with funds.”

He said it remains the government’s “ambition” to deliver on the promise made by the former ruling party to provide £11.6bn ($14.7bn) in climate finance between 2021 and 2026, while Labour undertakes a regular review of spending plans. It had inherited from the Conservatives a £22bn ($29bn) “black hole” in Britain’s annual budget and a “tough fiscal environment”, he added.

The previous government cut the UK’s overseas aid target from 0.7% to 0.5% of gross national income. The new one has repeated the Conservatives’ pledge to reverse this when “fiscal circumstances allow”. Lammy said on Tuesday he wants to restore it “as quickly as possible, and of course that’s a discussion that I’m continuing to have with colleagues in the [finance ministry]”.

He added that the UK government will propose to Parliament a guarantee for the Asian Development Bank which will “unlock $1.2 billion in climate finance for developing countries in the region”. He repeated the previous government’s support for a capital increase for the International Bank for Reconstruction and Development “subject to reforms”.

Clean Power Alliance

In addition, Lammy announced that the UK will appoint two new envoys for climate and nature, reporting to climate minister Ed Miliband and environment minister Steve Reed respectively. It will also launch a Clean Power Alliance that aims to help countries leapfrog fossil fuels and transition to energy systems based on clean power.  The UK itself aims to get all its electricity from clean sources by 2030.

“Of course, there are different obstacles from different countries but, despite several other valuable initiatives pushing forward the energy transition, there is no equivalent grouping of countries at the vanguard of the transition,” Lammy said.

He added that the alliance would “focus on diversifying the production and supply of copper, cobalt, lithium and nickel – the lifeblood of the new economy”. These minerals are key to the global energy transition because they are needed for things like electric cables and batteries – and their processing is largely dominated by China, something that is a concern for Western politicians.

Lammy stressed the need to “bring these commodities to market faster while avoiding the mistakes of the past”, and said the UK would help developing countries “secure economic benefits while promoting the highest environmental standards for mineral extraction”.

Climate Home has reported on how mining of these minerals has hurt local communities in Indonesia and Argentina – and may fail to bring fair benefits to local communities in Zimbabwe. A United Nations panel said last week that supply chains for critical minerals should not harm the local environment or human rights.

Lammy said the UK would restore its international credibility on climate action – after perceived indifference from former Conservative prime minister, Rishi Sunak – by ending new licenses for oil and gas production and overturning an effective ban on onshore wind power.

“We’re bringing an end to our climate diplomacy of being ‘do as I say, not as I do’,” he said.

(Reporting by Joe Lo; editing by Megan Rowling)