At COP29, the UK unveiled a significant funding initiative to assist climate-vulnerable nations in transitioning to clean energy. Energy Secretary Ed Miliband announced the package, emphasising the UK’s leadership role in addressing global climate challenges. The funding will accelerate the adoption of low-carbon technologies in nations already bearing the brunt of climate impacts, including African countries and small island states. Key areas of focus include advancements in energy storage, zero-emission generators, clean transport, and industrial decarbonisation for sectors such as steel, cement, and chemicals.
Highlighting the urgency of climate action, Ed Miliband stated, “Climate change does not respect borders, and the UK has seen a year of record-breaking warmth. That’s why we are determined to lead from the front and drive global change, to protect future generations at home and abroad.” This initiative is aligned with the UK’s ambitious target to reduce emissions by 81% by 2035, a commitment aimed at safeguarding the planet while fostering green economic growth.
The funding package includes £45 million ($56 million) for the World Bank’s Energy Sector Management Assistance Programme (ESMAP), making the UK its largest donor, £15 million ($18 million) for Innovate UK to drive clean energy innovation in developing nations, £14 million ($17.6 million) for the United Nations Industrial Development Organisation (UNIDO) to support industrial decarbonisation and clean hydrogen projects, and £5 million ($6.3 million) to address methane emissions in the fossil fuel sector, supporting the Global Methane Pledge initiated at COP26.
This support forms part of the UK’s broader £11.6 billion ($14.6 billion) International Climate Finance commitment for 2021–2026, funded through the Official Development Assistance (ODA) budget. Climate Minister Kerry McCarthy emphasised the importance of aiding vulnerable nations, stating, “Developing countries are often on the front line of the climate crisis, at higher risk of floods, heatwaves, and food insecurity, despite doing very little to cause it. This funding is vital for building resilience and supporting their transition to clean energy.”
In addition to the funding commitments, the UK introduced new Integrity Principles for voluntary carbon markets. These principles aim to enhance trust in carbon and nature credit trading, ensuring these markets channel finance effectively to developing countries and deliver tangible benefits for people, nature, and the planet.
With this comprehensive package, the UK is demonstrating its commitment to tackling the climate crisis while fostering international collaboration and setting an example for other nations to follow.