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Climate Finance: Tackling Loss and Damage
05 September 2023
Lead MP
Chris Law
Dundee Central
SNP
Responding Minister
Leo Docherty
Tags
Climate
Word Count: 12687
Other Contributors: 9
At a Glance
Chris Law raised concerns about climate finance: tackling loss and damage in Westminster Hall. A government minister responded.
Key Requests to Government:
The MP asks for assurance that the UK will not delay climate finance commitments due to aid cuts and expects firm commitments from developed countries at COP28 to establish a dedicated loss and damage fund. He requests new and additional funding beyond existing ODA budgets, emphasizing the need for grants rather than loans.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
The speaker is concerned about the substantial gap between climate finance pledges and actual funding, particularly noting that $100 billion a year for developing countries was promised but not delivered. He emphasises the urgent need for financial support to address loss and damage caused by climate change, highlighting impacts such as displacement in island nations due to rising sea levels and crop failures in east Africa. The speaker also points out that despite Scotland's efforts, the UK Government's decisions could undermine progress on addressing loss and damage.
Afzal Khan
Lab
Manchester Rusholme
Mr Khan asked about the Government's commitment to climate finance for loss and damage at COP28. He mentioned that there will be an estimated 1.2 billion climate refugees in the next 25 years, and cited the recent floods in Pakistan as a devastating example of the impact of climate change.
Caroline Lucas
Green
Brighton Pavilion
I congratulate the hon. Member on securing this important debate and argue that climate finance should be new and additional, not redirected from existing budgets. I suggest looking at the profits of oil and gas companies or fossil fuel subsidies as sources for such funding.
Dan Carden
Lab
Liverpool Walton
The hon. Member welcomes the Government's intention to deliver £11.6 billion of UK international climate finance but urges the Minister to clarify how this will be met within the timeframe, including front loading and ensuring it is new and additional. He highlights that fossil fuel corporations must compensate for their destruction and research showing the industry could cover economic losses in 55 vulnerable countries nearly 60 times over from profits between 2000-2019. The hon. Member emphasises estimates indicating an average GDP hit of 19.6% by 2050 for vulnerable countries even with a temperature increase limited to 1.5 °C.
Deidre Brock
SNP
Edinburgh North and Leith
I congratulate my hon. Friend on securing this debate on an important issue and argue that the Government's credibility on climate finance will continue to be undermined until the UK's official development assistance budget is restored to at least 0.7% of GNI. The hon. Member supports the idea that loss and damage funding should be additional and in the form of grants, not loans, questioning whether finance could be mobilised through cancellation of existing debt to help those most affected by climate change.
Fabian Hamilton
Lab
Leeds North East
Condemned the absence of Government Members in debates on climate finance and loss and damage. Highlighted the urgent need to address climate change, citing statistics from the International Development Committee and emphasizing the importance of solidarity with developing countries.
Dwyfor Meirionnydd
I congratulate the hon. Member on securing this essential debate, highlighting that finance must come in the form of grants and not loans, and emphasising the impact of climate change on population movement and migration.
Patrick Grady
SNP
Glasgow North
Recognised the importance of addressing climate justice and loss and damage, highlighting the urgent need for additional funding. Emphasised that support must go beyond existing pledges and should be in the form of grants rather than loans. Criticised the UK Government's avoidance of acknowledging climate justice. Called for innovative ways to leverage new funding, including contributions from private sector companies, particularly those benefiting from fossil fuel extraction.
Ruth Cadbury
Lab
Brentford and Isleworth
Ruth Cadbury highlighted the moral imperative for the UK to take leadership on climate finance, emphasizing the devastating impacts of climate change on vulnerable communities. She cited examples like droughts in Africa and floods in Pakistan, urging action based on historical successes such as the Montreal protocol. Young people frequently ask what will be done to stop the climate crisis, highlighting their concerns about inheriting a world damaged by inaction.
Sarah Champion
Lab
Rotherham
Ms Champion highlighted the urgency of addressing loss and damage caused by climate change, citing examples such as drought in east Africa and floods in the Himalayas. She noted that lower-income countries are disproportionately affected by these events due to their limited resources for mitigation and adaptation. The International Development Committee's report found that small island developing states (SIDS) are particularly vulnerable, with some facing existential threats from rising sea levels. The hon. Member apologises for interrupting and agrees with the previous speaker about the importance of ODA spend designed to help people stay safe and prosperous in their own homes, rather than spending on them when they arrive as refugees. She questioned the Minister about how much of the pledged money has been delivered and whether it constitutes new funding or is merely reallocated from existing overseas development assistance (ODA) budget.
Government Response
Leo Docherty
Government Response
It is a great pleasure to be here, Mr Betts. I am responding on behalf of the Minister for Development and Africa, my right hon. Friend the Member for Sutton Coldfield (Mr Mitchell). He would have taken this debate, but he is currently in Kenya attending the Africa climate summit, appropriately enough. We are all grateful to the hon. Member for Dundee West (Chris Law) for securing this important debate. I pay tribute to him for his ongoing work on the International Development Committee. We have heard a series of powerful, interesting and passionate speeches this morning, and I am grateful for all of them. As the debate has highlighted, floods, heat, storms and droughts triggered by climate change are increasingly threatening lives, homes and livelihoods. Poor, vulnerable and marginalised communities around the world, and women, girls and disabled people in particular, are disproportionately affected. The loss and damage are immense. Last year's devastating floods in Pakistan claimed 1,700 lives, put a third of the country underwater and left more than 20 million people in need of humanitarian assistance. That is why, at COP27, the UK and international partners agreed to set up a new funding arrangement for loss and damage, including a new dedicated fund. The UK invested £2.4 billion worth of international climate finance between 2016 and 2020 into adaptation, including investments in areas relevant to loss and damage—the subject of this debate. That included about £196 million on financial protection and risk management, £303 million on humanitarian assistance, and £396 million on social protection. The UK is doing what it can to help avert, minimise and address loss and damage from climate change, but given the scale of the challenge, we know we have to be more creative in the ways we support countries to manage the impacts, and that includes developing new financial mechanisms to provide support. An example of this is the Taskforce on Access to Climate Finance, launched by the UK in partnership with Fiji. The taskforce was launched following the UK-hosted climate and development ministerial in 2021. I am pleased to see that there will be a third climate and development ministerial held this year, with the UK, UAE, Vanuatu and Malawi co-hosting an event on how better development and climate actors can work together, which will build on the success of the first two. At COP27, the Prime Minister reaffirmed the UK's £11.6 billion climate finance pledge to vulnerable countries across the world and announced that the UK will triple climate adaptation funding to £1.5 billion in 2025, alongside the £1.5 billion we are investing in protecting the world's forests and £3 billion to protect and restore nature. This funding will help countries as they build their resilience, prevent biodiversity loss and reduce emissions, all of which are vital as we attempt to prevent and address loss and damage. The UK is doing what it can to help avert, minimise and address loss and damage from climate change, but given the scale of the challenge, we know we have to be more creative in the ways we support countries to manage the impacts, and that includes developing new financial mechanisms to provide support. An example of this is the Taskforce on Access to Climate Finance, launched by the UK in partnership with Fiji. The taskforce was launched following the UK-hosted climate and development ministerial in 2021.
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About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.