The UK is roughly halving the climate aid it allocates to developing countries, when accounting changes and inflation are factored in, according to new analysis by Carbon Brief.
On 19 March, the government announced that the UK would provide “around £6bn” of international “climate finance” over the next three years.
This replaces a previous goal to provide £11.6bn across the 2021-2026 period to help nations in the global south cut their emissions and deal with climate threats.
The new target was reported as a spending reduction of up to 14% compared to recent years, reflecting the UK’s wider plan to cut development aid and spend more on defence.
In fact, Carbon Brief analysis reveals that the cut is far larger in real terms, with the new target worth around 30% less per year once inflation is taken into account.
When also excluding the government’s use of widely criticised “creative accounting” to boost apparent spending, the new pledge is roughly 50% lower than the old one.
The drop in climate finance means that – alongside other major donors – the UK is diverging from an international target, agreed in 2024 at COP29 in Baku, to ramp up climate aid to $300bn a year by 2035.
‘Innovative reforms’
Under the Paris Agreement, the UK and other developed countries committed to provide financial support for climate action in developing countries. This “climate finance” comes from the UK’s wider budget for “official development assistance”.
Successive governments have pledged set amounts of climate finance over five-year periods, supporting everything from solar energy in Nigeria to mangroves in Indonesia.
In 2019, the Conservative government promised to “double” the previous target of £5.8bn for the financial years 2016-17 to 2020-21 and reach a total of £11.6bn between 2021-22 and 2025-26.
The current Labour government inherited this goal in 2024, at a time of geopolitical instability, conflict and threats to global climate action.
Alongside other developed countries, the UK then pledged at the COP29 climate summit in2024 to roughly triple the total amount of global climate finance to $300bn a year by 2035.
With its £11.6bn target expiring in April 2026, the government has been under pressure to set a new goal that would increase climate finance in line with this global ambition.
Instead, since COP29, the UK has announced it will cut overall aid spending to 0.3% of gross national income, compared to the historic 0.7%, to raise money for military spending.
This continues a trend of aid cuts started by the former Conservative government and mirrors similar cuts taking place in other countries. Most notably, the US has virtually eliminated its contribution to international climate finance.
In March, foreign secretary Yvette Cooper finally announced details of how the UK’s headline cuts in overseas aid would impact specific spending priorities between 2026-27 and 2028-29, including climate finance. She said:
“Over the next three years, the UK will spend around £6bn of official development assistance as international climate finance. We will balance support between mitigation and adaptation and maintain a focus on nature.”
This amounts to a clear cut in annual climate-finance spending, even without considering the impact of inflation or accounting changes, as the chart below shows.

Despite Cooper’s pledge to “maintain a focus on nature”, the government also scrapped the “ring-fencing” of funds for nature and forest conservation, as well as the practice of setting five-year goals to provide more certainty to climate-aid recipients.
(The relatively vague “around” £6bn is also notable, given the previous targets were set at precisely £11.6bn and £5.8bn. This could allow the government to ultimately spend less than £6bn.)
The government is also clear that it is shifting its focus to using public development aid to “unlock private investment for development”, framing its overall approach as “innovative development reforms”. Cooper stated that, as well as the £6bn in climate finance:
“We will aim to generate an additional £6.7bn of UK-backed climate and nature positive investments and to mobilise billions more in private finance.”
Cooper described “climate and nature” as two of the government’s four “priority” themes for its dwindling aid spending.
Nevertheless, the international development committee of MPs expressed “deep concern” about the new climate pledge and NGOs called it a “backward step”.
Accounting changes
Media coverage of Cooper’s announcement stated that the new climate-finance target was 13-14% lower than the previous one.
This is based on the difference between average annual contributions out to 2029 under the new pledge – around £2bn – and the £2.3bn average from the previous period.
However, Carbon Brief analysis suggests that this straightforward approach makes the target seem more ambitious than it actually is.
When the £11.6bn target was set in 2019, only specific, climate-related projects funded directly by the UK government counted towards it. Then, in 2023, the Conservative government decided to loosen the criteria for the funds it counted towards the target.
This included relabelling existing support for multilateral development banks (MDBs), humanitarian aid and more private-sector investments as “climate finance”.
This approach – which mirrors that of other climate-finance donors – means the government is now on track to hit the £11.6bn target. (For more details, see Carbon Brief’s previous coverage.)
NGOs criticised this “creative accounting” at the time. Similarly, the UK’s official aid watchdog described the changes as “moving the goalposts”, as they meant the government could meet its target without providing as much new money. Nevertheless, the current Labour government has retained the changes.
The government released a list of specific aid allocations alongside Cooper’s recent announcement, which includes how much it plans to give to MDBs, as well as the UK-owned development body, British International Investment (BII).
Most of this money would not have been counted as climate finance under the old accounting system. Under the new system, a large portion of it will be.
Carbon Brief estimates that £1.7bn of new climate finance over the next three years – roughly 28% of the total – would not have counted as climate finance before the government’s accounting changes.

As the chart above shows, much of the money reclassified as climate aid will derive from automatically counting a fixed share of UK funding for MDBs as “climate-relevant”.
MDBs, including the World Bank and the African Development Bank, are major contributors to global climate finance. Member states, such as the UK, pay money into these banks, which then use their financial resources to support development projects.
Notably, while virtually all of the UK’s traditional climate finance has been provided as grants to developing countries, MDBs provide most of their support as loans. The prevalence of loans in global climate finance is a long-standing point of contention for developing countries.
Including inflation
The second key factor that influences the comparison between the UK’s old and new climate-finance targets is inflation. Experts have highlighted the importance of correcting for inflation when considering long-term finance targets.
This issue is particularly important now, as in recent years there has been significant inflation in the UK and around the world. This means the finance that the UK committed to give back in 2019 would not go as far today as it did then.
Adjusting for this inflation, Carbon Brief estimates that the £11.6bn target would equate to £14.3bn today, using 2021-22 – the start of the £11.6bn target – as the base year.
This means the government would have to pledge £14.3bn over five years – or £2.86bn a year – just to match the spending power of its previous goal. This new goal of £2bn a year is effectively a 30% real-terms cut in annual climate finance from the UK.
As the chart below shows, the previous climate target from five years ago is roughly twice as large per year as the new 2026 target, after correcting for inflation and once accounting changes have been removed.

Of course, ultimately, the government relied on accounting changes to meet the previous £11.6bn target as well.
Nevertheless, this comparison shows the significant backsliding in ambition, from 2021 when the plan was an £11.6bn goal, relying on a narrow range of sources – to a 2026 target that is lower in real terms, while drawing from a wider range of sources.
Global cuts
In 2024, developed countries such as the UK collectively agreed to raise their global climate-finance contributions to $300bn a year by 2035, as part of their Paris Agreement obligations.
This international target replaced the previous goal of $100bn per year by 2020, which was belatedly met in 2022.
While the new target will include large contributions from the private sector and MDBs, there is an expectation that a significant portion of it will still come directly from developed countries.
In this context, it is clear that the trajectory of UK climate finance is going in the wrong direction – falling, rather than increasing
The UK is certainly not alone in this regard. Speaking in parliament, Cooper told MPs that “allies such as Germany, France and Sweden have made similar choices” to cut aid in order to fund military spending.
Very few developed countries – and none of the biggest donors – have officially announced new or updated climate-finance targets for the coming years.
However, analysis by aid organisation CARE International last year concluded that other major climate-finance donors, including Germany and France, will also see their climate finance fall over the coming year, following cuts to their aid budgets.
The most significant drop has come from the US, which has effectively cut its international climate finance from several billion dollars a year to zero, under the Trump administration.
In addition to cutting its overall contribution, the UK is signalling that it will focus less on grant-based climate finance from government spending and more on “unlocking” billions of pounds in private-sector finance for climate action, as well as on “reform of the international development system”.
Such approaches may end up playing a major role in nations hitting the $300bn target by 2035.
However, this is highly contentious, with many developing countries arguing at UN negotiations that developed countries are reneging on their responsibilities to directly “provide” climate finance.
Methodology
The UK has announced that it will spend “around £6bn” on international climate finance between 2026-27 and 2028-29. Alongside this announcement, it released a list of “official development assistance (ODA) programme allocations 2026-27-2028-29”. These include details of “planned multilateral ODA programming” – covering MDBs – and spending on “arm’s-length bodies, private sector investments, subscriptions”, including BII.
Carbon Brief calculated the climate-related shares of core MDB finance – which the UK now counts as climate finance – using the climate shares for each MDB identified by the Organisation for Economic Co-operation and Development (OECD) in 2023. These estimates may be conservative, as MDBs have committed to increasing the shares of their projects that are climate-related.
Carbon Brief calculated the extra BII contributions that the UK will count as climate finance by assuming, based on the most recent BII annual accounts, that 41% of its commitments each year will be climate-related. Previously, only 30% of BII contributions were counted as climate finance, so Carbon Brief assumed the difference between these shares would be additional.
The government has also said it now automatically counts 30% of all humanitarian assistance provided to the 10% most climate-vulnerable countries as climate finance. Based on figures provided to Carbon Brief via freedom of information request, this amounts to roughly 10% of all humanitarian assistance in recent years. The government has said it will “spend approximately £1.4bn each year in the places with the highest humanitarian need over the next three years”. Carbon Brief assumed that 10% of this – £140m each year – would count as climate finance.
To calculate the impact of inflation on the £11.6bn target, Carbon Brief used the UK Treasury’s GDP deflator, with 2021-22 as the baseline year.
The figures in this analysis are estimates based on the data released by the government so far. Climate-finance data is subject to various accounting changes and the final figures – when they are released – are likely to be different.
The post Analysis: UK is ‘halving’ its climate finance for developing countries appeared first on Carbon Brief.
Analysis: UK is ‘halving’ its climate finance for developing countries
Climate Change
London talks raise hopes for green shipping deal
A relatively ambitious deal to reduce the shipping industry’s 3% of global emissions now looks more likely after four days of closed-door talks in London, observers say.
The International Maritime Organization (IMO), which oversees the negotiations, said there had been “constructive discussions” and “genuine willingness within the group to make concrete further progress”.
Em Fenton, senior director at the NGO Opportunity Green who attended the talks last week, said they “demonstrated a strong spirit of solidarity in the face of blatant attempts to undermine the credibility, ambition and equity of a hard-fought multilateral agreement”.
After several years of debate, governments provisionally agreed in April 2025 on a “Net-Zero Framework” (NZF) – a series of emissions reduction targets for shipowners aimed at incentivising them to use cleaner fuels, backed up with financial rewards for meeting the targets and fees for missing them.
But in October 2025, after a high-profile intervention by US President Donald Trump and threats of US sanctions and visa restrictions, the US convinced a majority of voting nations to postpone the adoption of the NZF for a year.
UCL analysis found that, of those who expressed a view at last week’s talks, 38 were in favour of an NZF-style solution while only 17 were against. Those opposed are “consistently composed of strongly fossil fuel-aligned governments”.
An observer of the talks, who did not want to be named, said the countries opposed include the US, Russia, India, Thailand, Argentina, Ecuador and Uruguay, as well as eight oil-rich Gulf nations and shipowner-reliant Liberia and Panama. Governments that support an NZF-style deal include China, Brazil, Mexico, Türkiye, Canada, Australia, Chile, nine African nations, most European countries and small islands.
A new framework to tackle shipping emissions could be adopted if two-thirds of countries that are present and signed up to a regulation called Marpol Annex VI – endorsed by just over 100 states – vote in favour of it, as they did in April 2025.
UCL’s analysis said it was “reassuring” that governments which had taken strong positions in the media against the NZF were being more compromising in the negotiations.
Tweaks are probable
While there is majority support for the NZF, UCL said adopting it would be difficult politically. “The process from here could therefore be as much about producing what appears to be a new package, but one that broadly ends up with similar outcomes in relation to objectives,” UCL argued.
But tweaking the NZF, which resulted from years of negotiations, comes with risks, it warned. For example, changes could reduce the new system’s planned support for low-income countries, turning them against it. Fenton said compromising should not mean “abandoning the principle of justice in the maritime transition”.
UCL said the speed at which shipowners must reduce their ships’ emissions or face fees is likely to be reduced in the short-term but raised in the long-term to meet a goal of net zero emissions by mid-century.
This was a compromise put forward by NZF-supporter Brazil. However, an analysis by the the Institute of Marine Engineering, Science and Technology (IMarEST) has found that this change would lead to more overall emissions than the original NZF trajectory.
UCL has warned it could incentivise liquefied natural gas as a shipping fuel over greener options, which include hydrogen-based methanol and ammonia.
Analysis by UCL and the Rocky Mountain Institute suggests that, while a slower start to the NZF would reduce transport costs in the short term, it would increase them later due to the costs involved in switching the industry over from more polluting fuel to cleaner fuel.
NZF won’t meet emissions goals
IMarEst’s analysis finds that even in its current form – the most ambitious deal on the table – the NZF will not be sufficient for shipping to meet its emissions reduction goals.
It says that only a Pacific proposal to place a levy on ships’ total emissions – rather than just those above a certain level – would meet the industry’s targets to reduce emissions 20% between 2008 and 2030, 70% by 2040 and then reach net zero “by or around, i.e. close to 2050”. This is highly unlikely to be adopted.
Additional talks will be held from November 23-27 and from November 30-December 3 before a potentially final round of official negotiations begins on December 4.
The post London talks raise hopes for green shipping deal appeared first on Climate Home News.
Climate Change
At regional summit, Pacific islands ask for COP31 support for clean energy and finance
At a key leaders’ summit in Palau, Pacific island nations burdened by worsening climate change impacts and costly fossil fuel imports called for November’s COP31 climate summit to deliver finance to help the region transition to renewable energy and build more resilient communities.
Heads of government from the 18-member Pacific Islands Forum (PIF) – which includes COP31 co-president Australia – met in Palau’s capital Koror for a week-long summit, where they demanded access to climate finance, ocean action and a regional boost for renewables at COP31.
Palau’s president Surangel Whipps Jr. said during a plenary session that the Pacific must focus on delivering climate and ocean commitments. “It will require greater regional leadership, stronger regional coordination and, above all, unity of purpose,” he said.
The meeting, which ended last Friday, was marked by the absence of some leaders – among them the heads of state of the Solomon Islands, Vanuatu and Fiji, which will host a preparatory session for COP31 in October (referred to as the pre-COP31). There were also tensions over Taiwan’s participation, with China objecting to its presence as an observer.
The forum’s final declaration, published after it ended and signed by all its members, reaffirms that climate change is the “single greatest threat to the security, livelihoods and wellbeing of Pacific peoples”, and notes “the importance of a focused, high-level declaration” at the pre-COP31 to build “political momentum towards COP31”.
Australia and Pacific islands have invited world leaders to attend the pre-COP31 gathering, which will be held in Fiji and Tuvalu from October 5 to 8. While usually a technical meeting for negotiators, the island nations aim to issue a political declaration at the gathering calling for strong outcomes in Türkiye.
Chris Bowen, Australia’s climate minister and COP31 president of negotiations, said in a speech during the Pacific forum that his country is “determined to use COP31 to progress the agenda to make it easier for countries to access the climate finance they need”.
“We won’t miss the opportunity to ensure COP31 is a Pacific COP. Not just because of the location of pre-COP but because of the agenda we are shaping through the Action Agenda at COP31,” he said.
The Action Agenda is a large portfolio of climate initiatives and coalitions uniting governments, businesses and civil society outside of the formal negotiations on everything from health to methane emissions.
Renewable energy investment plan
Announced a year ago, the island nations launched a $14-billion investment plan for a “100% Renewable Blue Pacific” at the forum in Palau. The plan lists strategic projects that would reduce the region’s high dependence on fossil fuel imports, whose soaring costs have become a major burden since the Iran war.
The projects include a $52-million programme managed by Australia to develop off-grid renewables in remote communities across the Pacific, as well as a $100-million blended finance fund aimed at supporting private-sector investments in wind and solar, among others.
Currently, some countries in the Pacific are spending up to a quarter of their GDP importing diesel to power electricity generation, according to a new report by the University of New South Wales in Australia. The investment plan launched at the forum aims to reduce these costs by adding 2.2 gigawatts of renewable generation and around 9 gigawatt hours of electricity storage.
To channel funds into the region, the plan also highlights the role of the recently established Pacific Resilience Facility (PRF), a regional fund that seeks to swiftly disburse funds to climate-vulnerable communities at the local level. Bowen said he would promote the facility to world leaders attending COP31 and “ask for their support”.

Call to transition away from fossil fuels
Separately, the forum endorsed the Belau Declaration which emphasises the need to keep the 1.5C Paris Agreement temperature goal alive. A UN report last week showed that overshooting this limit is now inevitable, but deep emissions cuts could still bring global temperatures back down by the end of the century.
Pacific nations expect to rally support for this declaration at the pre-COP, with Fiji’s climate minister Lynda Tabuya saying in a statement: “Palau is where we build the political mandate. Pre-COP is where we take it to the world.”
The political declaration also says that countries must accelerate the global transition away from fossil fuels “towards a renewable energy future”, and calls for greater recognition of the importance of ocean health in addressing climate change.
UN sets out narrow path back to 1.5C warming after inevitable overshoot
As part of the forum’s outcomes in Palau, countries also noted Tuvalu’s efforts to host the second global conference on transitioning away from fossil fuels, which will gather government representatives in April next year to follow up on this year’s inaugural conference in Santa Marta, Colombia.
Speaking to journalists at the forum, Vanuatu’s climate minister Ralph Regenvanu questioned Australia’s role in talks about phasing out fossil fuels at COP31, adding that “the very least a country like Australia should be doing is stopping future expansion, and it’s not doing that”. During the PIF, the country approved the extension of a major mine that digs and exports coal for steel-making, giving it permission to keep producing until 2055.
Rising seas trigger “development emergency”
As leaders met in one of the world’s regions most threatened by sea-level rise, UN Secretary-General António Guterres released a new report warning that rising seas are now “one of the most profound threats to populations around the world in developed and developing states alike”.
Presenting the report at UN headquarters in New York, Assistant Secretary-General for Economic Development Navid Hanif said rising sea levels are not a “future risk any more” but an accelerating “development emergency” that could hinder progress in vulnerable regions like the Pacific and least developed countries.
The report warns that seas are rising “faster than at any point in recorded history”, with 2024 setting a new record of 5.9 millimetres. This has been driven by human-induced climate change mainly through a process known as thermal expansion – where rising heat causes the ocean to expand – as well as the melting of ice sheets.
Pacific islands seek backing for new regional fund ahead of COP31
The report notes that about 1.2 billion people around the world are exposed to coastal flooding, and says some low-lying islands in Vanuatu, the Solomon Islands and Fiji are already facing forced relocations. Globally, rising seas could cost more than $1 trillion every year by 2050, it adds.
“We cannot stop sea level rise this century but we can determine how much worse it becomes. About half a metre of sea level rise is already locked in in this century because of warming that has already occurred, but beyond that our choices matter enormously,” Hanif told journalists.
Bill Hare, CEO of think-tank Climate Analytics, said the report was a “wake-up call” to the leaders of high-emitting countries that their failure to cut carbon emissions is “creating major risks for the future alongside the impacts we can already observe around us”.
Guterres is set to host a high-level meeting on addressing the threat of sea level rise this month during the UN General Assembly, where countries are expected to adopt a declaration that calls for stronger action, expanded access to finance and “ongoing dialogue” to tackle the issue.
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At regional summit, Pacific islands ask for COP31 support for clean energy and finance
Climate Change
Palestine: Israel’s bombing has left Gaza vulnerable to climate change
Israel’s bombardment of Gaza during the conflict that broke out in October 2023 has wrecked progress towards adapting the enclave to climate change and left two million Gazans vulnerable to heatwaves, drought and disease, the Palestinian Authority (PA) said in a new climate plan submitted to the United Nations.
Palestine’s third nationally determined contribution (NDC), uploaded to the UN climate body’s website this week, says that while “the aggression on the Gaza Strip did not make the climate worse”, “it removed the housing, water and sanitation systems, health facilities, energy networks, roads and livelihoods through which people absorb a climate they were already struggling with.”
The 91-page document lists the types of infrastructure it says Israel has destroyed and notes how the destruction will worsen the impacts of climate change. It says the bombing of hospitals and rising hunger have make it harder for Gazans to cope with the health impacts of climate-driven heatwaves and waterborne diseases.
The destruction of water tanks, boreholes and desalination plants, meanwhile, have left Gazans struggling with the effects of water shortages and drought, while mass unemployment reduces people’s ability to afford climate-driven price rises. The erasure of most of the Strip’s homes makes it more difficult for people to avoid the sun’s increasing heat, the NDC said.
Many Gazans are now living in the ruins of collapsed buildings or in makeshift shelters and tents that offer little or no protection from high temperatures.
Palestine’s previous goals to cut emissions and adapt to climate change in Gaza, expressed in its last NDC five years ago, were based on a pre-war baseline that “no longer describes anything that exists”, the NDC says. Progress made since 2021 has now been destroyed, it adds.
Green reconstruction of Gaza
Instead of continuing to aim for these adaptation and emissions-reduction goals, the PA is now calling for the green reconstruction of Gaza. It says buildings should be constructed again in an energy-efficient manner with solar panels and served with modern water, waste and transport systems.
While the PA, controlled by the Fatah political party, continues to claim legitimate control of Gaza, the strip was effectively governed by Fatah’s rival Hamas between 2007 and the recent war. Control is now split between Israel and the political wing of Islamist militant group Hamas, after a US-backed ceasefire took effect in October 2025, although a UN-backed committee plans to take over.
The United Nations, European Union and World Bank have jointly estimated that Gaza needs $71.4 billion of investment in the next two years to recover and build back. This process should be Palestinian-led, they said in April.
But US President Donald Trump has said the US should “take over” and “own” Gaza and redevelop it as the “Riviera of the Middle East”. Israel’s right-wing prime minister Benjamin Netanyahu has said that Israel should control the territory with civil administration managed by Palestinians favourable to Israel.
With occupation, targets conditional
In the other part of Palestine, the West Bank, the Palestinian Authority carries out some government functions, but ultimate control rests with Israel, which has occupied the West Bank since 1967.
Because Israel controls planning in most of the West Bank, the NDC argues that the PA cannot pursue all the climate projects it wants. In addition, Israel restricts the movement of PA officials, making data collection difficult, and controls the West Bank’s electricity supply meaning that the PA cannot control whether it comes from dirty or clean sources of energy.
Given this situation, the NDC says that all of Palestine’s new climate targets are conditional but it will aim to reduce emissions 12.8% below a business-as-usual baseline by 2035 and 17.1% by 2040. If the Israeli occupation ends and Palestine regains full sovereignty over its land and resources, it will aim for reductions of 15.1% and 19.1% by 2035 and 2040 respectively under an “independence pathway”.
That could allow, for example, for greater electrification and reducing emissions per unit of growth, the document said.
To achieve the 2035 emissions-reduction target and adapt to the impacts of climate change, the PA says it needs $8.6 billion in total. This funding would be spent on measures like encouraging solar farms and rooftop solar and scaling up solar water heating to cover four-fifths of households. To complement the planned increase in solar power, the authority wants to modernise the electricity grid and install battery storage.
In the transport sector, it aims to promote the uptake of electric vehicles, develop bus rapid transit corridors and scrap old polluting trucks and buses. In Gaza in particular, it wants to deploy 66 electric buses when the conflict ends.

To adapt to climate-driven drought, the NDC includes initiatives to reuse wastewater through treatment plants, build desalination plants in Gaza to remove salt from seawater, and promote irrigation for farmers.
The new climate plan was prepared by Palestine’s Environment Quality Authority, with support from the United Nations Development Programme and the governments of Britain and Spain.
The United Nations recognised Palestine’s statehood in 2012 and it joined the UN’s climate convention and signed the Paris climate agreement – which requires countries to submit more ambitious NDCs every five years – in 2016.
The Israeli foreign ministry did not respond to a request for comment. But in late 2024, then Israeli climate envoy Gideon Behar told Climate Home News that the war and the resulting environmental destruction in Gaza was the fault of Hamas.
The post Palestine: Israel’s bombing has left Gaza vulnerable to climate change appeared first on Climate Home News.
Palestine: Israel’s bombing has left Gaza vulnerable to climate change
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