Exchequer Secretary James Cartlidge will set out how innovative new loan agreements will support the most vulnerable countries to the effects of climate change.
Climate Investment
The big discussions on the third official day of COP27 in Egyp's Sharm El-Sheikh were all around the theme of climate finance, and there does appear to have been some movement on this. Speakers emphasised that finance flows remain inadequate and that effective climate action requires investment. During the event, political and economic leaders highlighted the power of equitable international financial structures addressing global problems.
Vulnerable countries hit by hurricanes and other climate catastrophes are set to be able to defer repayments freeing up resources to fund disaster relief, as part of the new UK-led initiatives. This is part of the UK's wider commitment at COP26 to support developing countries to adapt to the impacts of climate change and for the UK to be the world's net zero-aligned financial centre.
And today, UK Export Finance has become the world's first export credit agency to offer this in its direct lending to low-income countries and small island developing states. Exchequer Secretary to the Treasury, James Cartlidge, said: "Climate shocks are increasing in frequency and severity which is why we are supporting countries hit hardest. In the wake of a disaster, they face painful trade-offs between rebuilding their communities and making debt repayments."
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-Further Reading-
COP26 and beyond: Playing our part in protecting our planet
COP26, the UN's annual climate change conference, is more highly anticipated than ever as the world focuses on building back better from the effects of the COVID-19 pandemic.
Policy Highlights: September 2022
Government outlines plans to help cut energy bills. The most vulnerable households will receive £1,200 support provided in instalments over the year, shielding them from massive bill increases.
COP27 Day 1 & 2: World leaders take the stage
COP27 is well underway in Sharm El-Sheikh, Egypt, as speeches from António Guterres, the United Nations Secretary-General, among others opened the event.