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UK climate finance commitments to developing countries will be cut by about half in real terms, according to an analysis of the government’s latest target and changes to how climate-related spending is counted.
On March 19, 2026, the UK government said it would provide around £6 billion in international climate finance over the next three years (2026–2029). This replaces the previous target of £11.6 billion for 2021–2026.
Initial media reporting described the cut as about 14%, based on a simple yearly average (about £2.3 billion per year under the old period versus about £2 billion per year under the new one). The analysis cited in the article argues that this comparison is misleading because it does not reflect the scale of the overall annual budget reduction.
When inflation is taken into account and changes to the accounting approach are not offset, the effective reduction is estimated at roughly 50%.
Under the Paris Agreement, developed countries—including the UK—are expected to provide financial support to developing countries to address climate change.
In 2019, Prime Minister Boris Johnson’s government pledged to “double” the target from £5.8 billion for 2016–2021 to £11.6 billion for 2021–2026. The Labour government inherited this target in 2024.
At COP29 in 2024, the UK and other developed countries pledged nearly triple global climate finance to about $300 billion per year by 2035. With the £11.6 billion UK target due to expire in April 2026, expectations were for an increased commitment aligned with that ambition.
Instead, the government announced cuts to official development assistance to 0.3% of gross national income, down from 0.7%. The article notes this follows a broader pattern of aid reductions and cites the United States as having nearly eliminated climate finance contributions under the Trump administration.
Foreign Secretary Yvette Cooper said on March 19, 2026: “Over the next three years, the UK will spend around £6 billion of official development assistance as climate finance international.” She also pledged to balance mitigation and adaptation while maintaining a focus on nature conservation.
When the £11.6 billion target was set in 2019, the article says only direct climate-related grants were counted. In 2023, the Conservative government changed the definition to include contributions to multilateral development banks (MDBs), humanitarian aid, and investments in the private sector, all relabeled as climate finance.
The UK aid watchdog described this as “moving the goalposts,” allowing the government to meet the target without additional spending. The article says the current Labour government continues to use this accounting method.
Carbon Brief estimates that about £1.7 billion of the £6 billion would not have counted as climate finance before the accounting change. It adds that much of this reflects automatically counting a fixed share of UK contributions to MDBs as climate-related, even when it is not.
Inflation also reduces the real value of long-term finance targets. Using the GDP deflator with 2021–22 as the base, Carbon Brief estimates that the £11.6 billion target in 2019 would be equivalent to about £14.3 billion at today’s prices.
To maintain the same purchasing power, the government would need to commit about £14.3 billion over five years—around £2.86 billion per year. The new target is around £2 billion per year, which the article describes as a real-terms cut of about 30% versus the previous commitment.
The UK is not alone. CARE International’s analysis last year concluded that other major donors, including Germany and France, are also expected to reduce climate finance as aid budgets are cut.
The article says this leaves developing countries—described as being on the front lines of climate change—with less support from wealthy economies.
It also states that the UK is reorienting its approach by focusing less on direct non-repayable aid and more on unlocking private investment and “reforming” the international development system. The government aims to mobilise around £6.7 billion of climate and nature investment, with additional funding from private finance.
The International Development Committee raised “grave concerns” about the new commitments, and non-governmental organizations called the move a “step backwards.”
The article argues that the long-term consequences could include undermining trust in climate finance commitments. It notes that developing countries in UN negotiations argue developed nations are shirking direct funding and relying instead on complex and uncertain mechanisms.
It also highlights that private finance and MDB loans may be directed toward profitable projects (such as large-scale renewable energy) and may not adequately address urgent adaptation needs, potentially increasing debt burdens for developing nations.
The article warns that a domino effect could follow, with smaller economies feeling pressure to reduce support as well, potentially contributing to climate finance falling toward the modest target of about $300 billion per year by 2035.
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