What’s next for international climate spending in the UK under the new fiscal rules?
Photo: Heidi Fin, Unsplash
The UK Government has a commitment to support developing countries to respond to the challenges and opportunities from climate change through the International Climate Fund (ICF), which is official development assistance (ODA). However, the Government is facing a tight fiscal situation, which it will have to accommodate in the upcoming Spending Review that locks in public spending until 2029. This report from the Centre for Economic Transformation Expertise (CETEx) recommends adjusting the treatment of guarantees as a fiscally efficient way of supporting the UK to expand its deployment of development guarantee instruments, with the aim of better managing potential exposure in the event of a default.