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Written question asked by Cat Smith (Labour) on Friday, 28 August 2026, in the House of Commons. It was due for an answer on Wednesday, 2 September 2026. It was answered by Kirsty McNeill (Labour) on Monday, 7 September 2026 on behalf of the Foreign, Commonwealth and Development Office.

Climate Change: Finance

Question

To ask the Secretary of State for Foreign, Commonwealth and Development Affairs, what assessment he has made with Cabinet colleagues on the potential impact of the level of global climate finance that is provided through loans on indebtedness in lower income countries.

Answer

The UK only provides climate finance directly to lower income countries' governments in the form of grants.

The UK also supports the Multilateral Development Banks and multilateral climate funds to provide climate finance, including through loans. These institutions have robust frameworks that explicitly take into account both the income and debt levels of countries to ensure financing is sustainable. Poorer countries and those with higher debt levels are prioritised for grants. Loans provided to lower income countries are highly concessional with grace periods and low interest rates making them far cheaper sources of funding than countries would otherwise be able to access.

The UK expects other partners to consider and assess debt sustainability in their provision of climate finance.

Secondary information

Type
Written question
Reference
21173
Session
2026-27
Subjects
Climate change Developing countries Finance Loans
Link
View this Written question on www.parliament.uk