International Climate Finance

Climate change is a global challenge that affects us all. No country is projected to be spared from the impacts of further global temperature increases and we are already facing serious challenges to the natural environment; to food production; and to water resources. Without concerted global action to limit and manage the impact of climate change, we could reverse the huge gains in global poverty reduction which the UK has helped achieve over the last 3 decades.

UK International Climate Finance (ICF) helpsplays thea UKcrucial deliverrole onin ouraddressing commitmentsthis toglobal developingchallenge. countriesThree undergovernment departments have responsibility for investing the ParisUK’s Climate£5.8 Agreement.billion Theof UKICF isbetween supporting2016 developingand nations2021:

• Foreign, toCommonwealth pursueand green-growthDevelopment pathways,Office access(FCDO) clean- energy,formerly reducethe deforestationDepartment andfor protectInternational nature,Development build(DfID)
• Department greenfor infrastructureBusiness, Energy and increaseIndustrial capacityStrategy (BEIS)
• Department for climateEnvironment adaptationFood and resilience
  Rural Affairs (Defra)

ClimateOur changeICF anddelivers naturein lossthe arenational amonginterest, thedelivering mostall pressing4 challengesaims thatof wethe faceUK globally.aid Urgentstrategy:

• strengthening actionglobal ispeace, neededsecurity beforeand 2030governance
• strengthening toresilience reduceand emissionsresponse into linecrises
• promoting withglobal aprosperity
• tackling 1.5extreme degreespoverty pathway and avoidhelping the worstworld’s impactsmost ofvulnerable

If we do not tackle climate change, whichit will hitundo low-the andprogress middle-incomemade countriesglobally to meet the hardest.

OurSustainable choicesDevelopment Goals. We directly support the goals on climate action and actionsaffordable now,and clean energy, as well as indirectly supporting many others.

Overview

Domestically and internationally the UK is a leader on climate change. We played a pivotal role in securing the yearsParis Agreement in 2015, where the world came together to come,agree willa haveplan profound,to long-termlimit consequencestemperature forrises ourto planetbelow and2 degrees. We have reduced our wayemissions ofquicker life.than Thisany includesother country in the naturalG20, environmentdrawing on the depth and biodiversity,breadth globalof prosperity,UK povertylow eradication,carbon healthknowledge and resilienceexpertise toand shocks.creating Withoutnew effectiveeconomic globalopportunities. actionSince to1990 limitthe andUK manageeconomy thehas impactgrown ofby climatetwo change,thirds upwhile toemissions 132have millionfallen peopleby (PDF,over 389KB)40%. couldWe behave pushedended intoUK extremesupport povertyfor byunabated 2030.coal power generation and, across the world, UK businesses are helping to make the global low carbon transition a reality.

The UK Internationalhonours Climateits Financeinternational (ICF)obligations. playsAlongside aother crucialdeveloped rolecountries, we have committed to jointly mobilise $100 billion per year in addressingclimate thisfinance globalto challenge.developing Thecountries UKfrom haspublic committedand private sources. This was instrumental in securing the landmark Paris Agreement. As part of this commitment, we pledged to spendingprovide £11.6at least £5.8 billion of International Climate Finance (ICF) between 2021/20222016 and 2025/2026,2020. ensuringThis ais balanceofficial development assistance from FCDO, BEIS and Defra. It aims for an even split between mitigation and adaptation and mitigation.places Thisus includesamongst the world’s leading providers of climate finance. We have also committed up to £1$5 billion towith supportGermany cleanand energy,Norway research,for developmentcountries  andwho demonstration,bring andforward atambitious leastprojects £3to billionhalt ondeforestation.

Investing protecting,our restoring,climate andfinance sustainablytoday managinghelps nature,reduce withcosts £1.5tomorrow. billionEvery on£1 forests.invested Thewell UKin willclimate-related alsorisk treblereduction oursaves adaptationmore spendingthan from£3 £0.5(and billionup to £50) in 2019avoided todisaster £1.5impacts. billionSimilarly, inevery 2025.pound  UKspent ICFcutting isCO2 officialpays developmentfor assistanceitself (ODA)between five- and 4twenty-fold governmentby departmentsoffsetting havethe responsibilityfuture forcosts investingof climate change. Our ICF: does this by:

• Foreign,building Commonwealththe resilience of the poorest people and Developmentcommunities. OfficeIt (FCDO)
• Departmentsupports countries to prepare for Energyand Securityadapt to climate change, improving how disasters are managed and Netreducing Zerothe (DESNZ)harm they cause and the costs of responding

BRACED Programme, FCDO

• Departmentworking forto Environment,ensure Foodthat the vast expansion in infrastructure in developing countries is low carbon and Ruralclimate Affairsresilient (Defra)
• Department– forusing Science,our Innovationfinance to build capacity and Technologyunlock (DSIT)greater flows of private finance towards clean growth, bringing down the costs of a global low carbon transition in the process;

TheCarbon UKInitiative isfor proudDevelopment, ofWorld itsBank roleGroup

• supporting workingwork withto otherhalt countriesdeforestation toand create thenew Sustainablesupply Developmentchains Goalsthat (SDGs),are whichboth representprofitable collectiveand ambitionsustainable. andWe ahelp sharedcommunities visionto foruse aland betterin worldways bythat 2030.reduce Unlessemissions weand tackleimprove climateproductivity whilst protecting and naturerestoring loss,forests thethat developmentsupport gainsimportant ofbiodiversity recentand decadesfragile areeco-systems.

Capacity underbuilding threatto spot early signs of reversal.deforestation in Colombia

OverviewLatest statistical releases

DomesticallyRead andthe 2024 internationallyInternational Climate Finance results for the UK.

Previous isresults

2023 aInternational leaderClimate onFinance climateresults change.for Wethe playedUK.

Although aICF pivotalResults roleare innot securingOfficial Statistics, where possible we follow the ParisCode Agreementof inPractice 2015,for whereStatistics. theThis world UK cameClimate togetherFinance toresults: agreestatement aof planvoluntary tocompliance limitwith temperaturethe risesCode toof belowPractice 2for degrees.Statistics (ODT, We15 areKB) demonstrates the firststeps majortaken economyin recent years to halveimprove itsthe emissionstrustworthiness, –quality havingand cutvalue themof byICF 50%Results.

We betweenare 1990committed andto 2022 2022,understanding whileand growingmeasuring the economyimpact byof 79%.our Weinvestments, haveand alsoannually cutpublish emissionsa fasterset thanof anykey results.

View other G7ICF countryresults overpublications theand lastKPI decademethodologies.

Evaluation

Learning andis haveessential someto achieve maximum impact and value-for-money of theICF. world’sUnder mosta ambitiouscross-departmental legallyICF bindingmonitoring, targets.evaluation Weand havelearning endedprogramme, UK3 supportindependent forevaluations unabatedwere coalexternally powercommissioned generationto and,address acrossevidence gaps related to ICF policy and strategy.

See the world,evaluations on the GOV.UK UK businessesClimate areFinance helpingResults topage.

Case makestudies

Celebrating the global10th lowanniversary carbonof transitionthe aClimate reality.

Investment Funds (CIFs)

TheSolar UKpower honourscomplex itsin internationalOuarzazate obligations.Morocco

Climate Alongsidefinance otherpractitioners developedfrom countries,around wethe globe are committedgathering toin continuingJanuary 2019 in Morocco to delivercelebrate onthe 10-year anniversary of the pledgeClimate toInvestment jointlyFunds mobilise(CIFs) $100– billionone perof yearthe inworld’s largest and most ambitious climate finance mechanisms.

Co-founded by the UK in 2008, the CIFs are designed to help developing countries fromtransition publictowards low-carbon and privateclimate-resilient sources,development.  andThe UK is the largest contributor, having invested £2 billion (almost $3 billion) of the $8 billion disbursed to workingprojects towardsthat areduce newemissions, support clean growth, build climate financeresilience goaland fromprotect 2025.forests.

WeThe areevent amongstis being held at the world’s leadinglargest providerssolar farm in Ouarzazate on the edge of climatethe financeSahara andDesert. ourThis climategroundbreaking finance500 isMW ofConcentrated aSolar highPower quality,complex, withwhich aUK significantfunding proportionhelped providedestablish, insupplies clean power to 1.1 million Moroccans. Its sheer scale has driven down the formcosts of grants.this Wecutting-edge ensuretechnology thatby climate50%, financeenabling programmesthe areMoroccan designedgovernment to beraise responsiveits renewables energy target to country42% needs;by are2020. 

Over adaptablethe topast changing10 circumstances;years, arethe capableCIFs ofhave drivingfunded transformationalover change300 andprojects offerin valuemore forthan money.70 countries and are expected to:

In

• deliver order26.5 toGW meetof new clean power - more than the scaletotal power capacity of financethe neededNetherlands
• provide 8.5 million people with improved access to tackleenergy - equivalent to the climatepopulation crisis,of weSierra willLeone
• place continue36 tomillion workhectares toof mobiliseforests theunder privateimproved sectormanagement and- positionequivalent to the UKarea asof theGermany
• support green45 financemillion capitalpeople to cope with the effects of climate change - more than the world,population includingof takingSudan.

UK stepsPACT to(Partnering setfor aAccelerated world-leadingClimate sustainableTransitions)

The financeUK regulatoryPACT framework.Programme: market engagement event

WeUK willPACT also(Partnering usefor partnershipsAccelerated toClimate accelerateTransitions) theis requireda transitions,bilateral includingcapacity building programme, delivered through Justthe EnergyUK’s TransitionInternational PartnershipsClimate Finance (JETPsICF). AndThe weprogramme willresponds addressto the specificcritical needsglobal ofneed thoseto onbuild the frontlinescapacity of thecountries climateto crisis,accelerate inthe particularimplementation theof Leasttheir DevelopedNationally CountriesDetermined Contributions (LDCsNDCs)).

UK PACT will work with high-emission, high-ambition developing countries, with £60 million between 2018 and Small2021, Islandthrough Developingbilateral Statesprogrammes, (SIDS).skill-shares and a global challenge fund.

TheUK UK’s ICFPACT’s focusesprogramme onobjectives drivingare transformationto:

• work andwith systemicpartner shiftscountries requiredseeking to achieveimprove the Pariscapacity Agreementand goalscapability of key institutions (public, private, and delivercivil society) to reduce emissions and poverty
• focus on theimplementation Glasgowand Climateclimate Pactambition, .by Weaddressing arebarriers,  strengtheningconstraints and areas of opportunity at different levels of government based on the gender-responsivenesscountry’s political and inclusivityeconomic ofcontext and sectoral priorities

UK climatePACT financeis forfunded bothby adaptationOfficial Development Assistance (ODA) and supports the UK government’s development objectives of alleviating poverty, through the acceleration of climate mitigation, includingin byline increasingwith the proportionCOP 21 Paris Agreement.

UK PACT also raises visibility of the UK’s work on climate change internationally, including in areas of UK strength, such as green finance thatand climate legislation. The UK reduced emissions quicker than any other country in the G20, whilst growing its economy. It has gendercommitted equalityto asreduce aour principalemissions orto net zero by 2050. There are significant objectivelessons asfor definedus byto theshare OECDfrom Developmentthis Assistanceprocess, Committeeas Genderwell Equalityas policyto marker.learn from other countries.

Delivery model

AlongsideUK ICFPACT, is demand-driven and utilises a strong presence on the UKground isto takingbuild actionpartnerships with governments, to ensureidentify thatopportunities allwith ourpotential newfor bilateraltransformational impact and to complement wider International Climate Finance and ODA spendingprogrammes.

It is aligneddesigned to be flexible and adaptive, with 3 core components to its delivery model. BEIS has procured a delivery partner to lead the Parisdelivery Agreement..of each component:

• Parisbilateral alignmentcountry-specific isprogramme embeddedfunds: into FCDOBEIS’s Programmehas Operatingpartnered Frameworkwith Palladium International Limited to ensuredeliver ongoingthe alignment.bilateral Thisprogramme, which will helpsupport innovative projects in our partner countries to ensureprovide thatcapacity building in line with our partner countries’ priorities

• skill shares and secondments: BEIS has partnered with PA Consulting Services Limited to deliver this programme, which will provide both short-term peer-to-peer skill shares with country counterparts, and long-term secondments into key institutions

• Challenge Fund: BEIS has partnered with ICF Consulting Services Limited to deliver the UK’sChallenge bilateralFund, which will provide support for innovative capacity building projects in a wider range of ODA-eligible spendcountries isto consistentpromote withemissions thereductions and low carbon andsolutions

Calls climatefor resilientproposals

Active developmentcalls pathwaysfor thatproposals

There are criticalcurrently no active Calls for deliveringProposals on– theplease Parischeck Agreement.     back soon.

Our

Past annualcalls results  

for proposals

• China-UK PACT
• Colombia-UK PACT
• Mexico-UK PACT

Sustainable Energy for Women and Girls (SEWG) programme

OurPowering ICFHealth Care: Phoebe’s Story

The Sustainable Energy for Women and Girls (SEWG) programmesprogramme areaims havingto support a globalshift impact,in asthe setway outclean energy markets operate, with a focus on improving access to and awareness of clean energy options, supporting health, safety and economic opportunities for women and girls in ourdeveloping publishedcountries. annualOne of the strands of this work, a health facility electrification project managed by the United Nations Foundation, is powering primary health clinics with solar energy solutions, where there is no electricity access or where it is unreliable. Funded by SEWG using the UK’s International Climate FinanceFinance, (ICF)it results.is Fromdelivering Aprilpower 2011to 62 clinics across Uganda and Ghana.

By installing a reliable, renewable energy source in these clinics, women can more safely give birth at night in well-lit delivery rooms, whereas previously mid-wives used mobile phone torch light to Marchdeliver 2024babies ourand ICFadminister has:    care to patients. Medical equipment can also be more effectively sterilised, and clinics can preserve vaccines and other medicines.

Phoebe, the Assistant Nurse in charge of one of the health centres with the new solar panels said:

directly

I supportedchose overto 110become milliona peoplemidwife because my mother was saved by doctors and I felt like I owed a debt to copehelp. withI came to this clinic 4 years ago, but for a long time, many women didn’t come here. We didn’t have any electricity. Mothers would die while giving birth at night. All of us were afraid. The electricity has really helped us. We’re now able to carry out all main operations. The community knows about the effectselectricity and they are coming here now. The power provides access anytime.

Improving Resilience in South Sudan (IRISS), BRACED



Improving Resilience in South Sudan (IRISS), BRACED

According to the Climate Change Vulnerability Index, South Sudan is amongst the most vulnerable countries in the world and projections indicate that the impact of global warming there will be felt 2.5 times more than the global average. Over 90% of the people in South Sudan are reliant on climate sensitive sectors for their livelihoods and climate change

• provided 82could millionhave peoplea withmajor improvednegative accessimpact on their income.

  The Improving Resilience in South Sudan programme (IRISS), funded by ICF, builds community resilience to cleanfloods energy

• reducedand ordroughts avoidedin 105South millionSudan. tonnesIt works with communities to develop knowledge and skills so that they can produce long lasting sources of greenhousefood gasand emissions,reduce equivalenttheir todependence overon aid. Through a quartercombination of thenew emissionsfarming producedtechniques, vegetable gardening and village savings and loan associations, IRISS helps community members to build climate-resilient agriculture skills to take back to their villages and farms.

  The training and provision of tools and seeds funded by this programme has expanded the UKavailability inof 2022

• avoidedfood, 750,000from hectaresthe traditional harvest of ecosystemjust loss
• mobilisedone major cereal crop, to an additionalalmost £7.8continuous billionharvest privateof financevegetables tothroughout tacklethe year. So far, it has trained over 2,900 people in climate change

resilient agriculture techniques.

Read more about ourthis, latest 2024and Internationalother resilience programmes – Building Resilience and Adaptation to Climate FinanceExtremes resultsand forDisasters.

The Clean Technology Fund (CTF)

Empowering a Greener Future through Clean Technologies

Climate-friendly energy can reduce poverty and build economic growth in developing countries. That’s why the UK, whichworks includeswith the underlyingCTF pipelineto code,finance large-scale renewable energy technologies like solar power, and viewto previouspromote ICFenergy efficiency. The success of the Fund’s programmes shows others, including the private sector, that climate smart technology is worth investing in.

The Clean Technology Fund (CTF). resultsPhoto publicationscredit: andWorld KPIBank methodologies.Group/ Abengoas Solar

EachSouth yearAfrica’s weKaXu publishSolar aOne setConcentrated ofSolar ICFPower project, with funding from the CTF, Resultsrecently coveringwon an award from the collectiveUnited achievementsNations offor ourit’s ICFapproach programmesto throughtackling aclimate setchange. The plant works by using around 330,000 mirrors to reflect and concentrate the sun’s rays, generating enough renewable energy to power 80,000 South African households. It is expected to save around 315,000 tonnes of keyCO2 performancea indicators.year, Although ICF Resultsequivalent areto nottaking Official66,000 Statistics,cars whereoff possiblethe weroad. Not followonly this, KaXu is also helping stimulate the Codelocal ofeconomy. PracticeSince for2012, Statistics.the This UKplant Climatehas Financegenerated results:over statement1,700 ofjobs voluntaryin compliancethe Northern Cape, a province with a high rate of youth unemployment.

The local community also benefit through a 20% equity stake. Dividends from this support local education, health and housing initiatives that will benefit the Codelivelihoods of Practicesome forof StatisticsSouth Africa’s most vulnerable citizens.

Clean Technology Fund (ODT, 15

Blue KB) demonstratesForests Programme

Blue Forests video

Mangrove forests are some of the stepsmost takeneffective inhabitats recenton yearsearth at storing carbon which could otherwise be released as carbon dioxide and so contribute to improveglobal thewarming. trustworthiness,As qualitywell as supporting endangered species and valueabsorbing of ICF Results.carbon dioxide, they perform a range of other ecosystem services such as storm protection, prevention of coastal erosion and climate change adaption and resilience for the hundreds of millions of people that rely on them.

WeStill, they are committedone toof understandingthe world’s most threatened tropical ecosystems. Less than 1% of the remaining mangrove forests are adequately protected. Their loss erodes coastlines and measuringreduces the impactability of ourpoor investments,communities on these coastlines to cope with the impacts of climate change.

Madagascar houses Africa’s third largest expanse of mangrove forests. Secure management and annuallylegal publishbarriers aare setneeded to stop unregulated and unsustainable exploitation of keythe results.mangroves.

Blue Forests Programme

The Blue Forests project, supported by UK ICF, Resultswill arereduce onemangrove wayloss weby monitorworking these,with however,local wecommunities, alsothe publishprivate programme-specificsector dataand includingthe annualgovernment. reviews,It Logwill frames,explore andgreen business casesopportunities atbased DevTracker.on sustainable mangrove forestry and fisheries management. Coastal communities then benefit through increased resilience to climate change and the conservation of threatened marine biodiversity.

Evaluation

LearningThe project is essentialexpected to achieveprotect maximum20,000 impactha of mangroves through community forest management and value-for-moneybenefit of ICFover 100,000 forest dependent people with the development of multiple sustainable livelihoods.

Blue Forests Programme

The Renewable Energy Performance Platform (REPP.)

The UnderRenewable aEnergy cross-departmental ICFPerformance Platform (REPP monitoring,)

Virunga evaluationPower, an African developer, investor, and learningoperator programme,3of independentrenewable evaluationspower wereprojects externallyand commissionedrural distribution grids, wanted to addressdevelop evidencetwo gapsriver-based relatedmini to ICF policyhydro-power plants in the Murang’a and strategy.Bungoma counties of Kenya. To get these projects off the ground they needed to show private investors that the projects would be sound and successful.

SeeThe UK is the evaluationssole funder of REPP, an organisation focused on providing access to financial and technical assistance. Partnering with REPP allowed Virunga Power to carry out activities like environmental impact assessments and feasibility studies. This addressed concerns of potential investors and the UKproject Climateis Financenow Resultsexpected pageto attract significant private and public finance. At the Internationalsame Climatetime, Financeit programmes:demonstrates synthesisthat ofsmall learningscale page.renewable energy projects in sub-Saharan Africa are a viable investment.

Case

These studies

2 power plants will provide improved access to clean electricity to around 340,000 people in rural communities, helping to stimulate rural economic growth. REPP is now working with partners to develop more hydro, biomass and solar power projects in Kenya which could power 18,000 homes.

For more information visit: Renewable Energy Performance Platform

Further information on on ICF projects projects can be found on https://devtracker.fcdo.gov.uk/[https://devtracker.fcdo.gov.uk/).

Contact details

For further details about the the ICF, get in touch with with FCDO, DESNZ or, BEIS or Defra using the contact details below.

fcdo.correspondence@fcdo.gov.uk  / 020 7008 5000

ukicf@beis.gov.uk

ODAHub@defra.gov.ukDefra Contact Form / 03459 33 55 77

Further information

Access to funding

There is currently no direct route through which an organisation outside of the UK Government can independently develop a project to be considered for ICF funding. We recommend that in-country projects apply to the delivery partners that we invest in for funding.

External review

The work of of ICF was was last reviewed by the Independent Commission for Aid Impact in 2024.2014. You can read details of the review below -

• Independent Commission for Aid Impact Audit of of ICF (February 2019)(December 2014)

• Government Response to ICAI Audit

UK reporting of of ICF Spend Spend

• UK

  UK’s Biennial2018 FinanceReport to the EU

• 7th National Communication and Biennial Report to the United Nations Framework Convention on Climate Change (PDF, 410KB)

Government departments

ICF is a cross-government collaboration led by 3 different departments. Find out more on the wider work of each department:

• 8thForeign, NationalCommonwealth Communication and BiennialDevelopment ReportOffice
• Department toof theBusiness, UnitedEnergy Nationsand FrameworkIndustrial ConventionStrategy
• Department onfor ClimateEnvironment, Change
  Food and Rural Affairs