visimoney
TLDR:
- UK accused of “moving goalposts” on climate finance commitments
- Reclassified £1.7bn of existing aid as environmental funding
Ministers in the UK are under scrutiny for reclassifying £1.7bn of existing aid as environmental funding in order to meet international climate commitments. The government’s official aid watchdog, the Independent Commission for Aid Impact (ICAI), raised concerns about this accounting shift, stating that the UK may still not reach its £11.6bn climate finance target due to budget cuts. The report highlighted that the UK proposed changes in accounting methodology to adjust the goalposts for achieving the commitment, ultimately leading to the reclassification of existing funds. While the UK’s initial pledge was praised, concerns were raised about the impact of the reclassification on the effectiveness of aid to the most vulnerable countries at risk from climate change. The report also noted a lack of transparency in the new accounting practices, making it difficult to hold the government accountable for its commitments.
Full Article:
Ministers in the UK are under scrutiny for reclassifying £1.7bn of existing aid as environmental funding in order to meet international climate commitments. The government’s official aid watchdog, the Independent Commission for Aid Impact (ICAI), raised concerns about this accounting shift, stating that the UK may still not reach its £11.6bn climate finance target due to budget cuts. The report highlighted that the UK proposed changes in accounting methodology to adjust the goalposts for achieving the commitment, ultimately leading to the reclassification of existing funds. While the UK’s initial pledge was praised, concerns were raised about the impact of the reclassification on the effectiveness of aid to the most vulnerable countries at risk from climate change. The report also noted a lack of transparency in the new accounting practices, making it difficult to hold the government accountable for its commitments.
The UK’s reclassification efforts involved finding £1.7bn by reclassifying core contributions to multilateral development banks, classifying a fixed proportion of humanitarian programs as green finance, and identifying additional funds through a scrubbing exercise. However, the report criticized these methods, pointing out that the shift towards loans instead of grants via multilateral development banks could be less appropriate for the poorest and most climate-vulnerable countries. The report emphasized the need for the UK to deliver the remaining 55% of the £11.6bn pledge within the final two years and expressed concerns about the allocation of funds to address the needs of the most vulnerable regions affected by climate change.
