Energy projects in developing countries to receive £79m in UK climate finance

Energy projects in developing countries are set to receive a boost of £79 million in UK climate finance. The announcement was made by the Government to support initiatives aimed at accelerating the energy transition in developing nations. The funding will focus on driving clean power innovation in countries most affected by the climate crisis, such as African nations and small island states.

At Cop29 in Azerbaijan, Energy Secretary Ed Miliband unveiled the funding commitments, highlighting its importance in supporting vulnerable regions and unlocking global growth through decarbonisation. The funding will be allocated towards various innovations, including low-carbon technologies, energy storage, zero-emission generators, clean transport, and decarbonisation in key industries like steel, chemicals, cement, and concrete.
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This financial injection falls under the UK’s existing commitment to allocate £11.6 billion in climate finance over a five-year period leading up to 2026. A significant portion of the funding, £45 million, will be directed towards the World Bank’s energy sector management assistance programme, aiding developing and emerging countries in addressing energy challenges.

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Moreover, Innovate UK, the UK’s national innovation agency, is set to receive £15 million to drive clean energy innovation in developing countries. The UN Industrial Development Organisation will benefit from £14 million to support projects focusing on industrial decarbonisation and clean hydrogen. Additionally, £5 million has been earmarked to assist developing countries in addressing methane emissions from fossil fuels.

Mr. Miliband emphasised the urgency of global action on climate change, noting that the UK has experienced record-breaking warmth, underscoring the need for leadership and collaboration to safeguard future generations. The UK has also played a role in shaping voluntary carbon markets at Cop29, introducing UK integrity principles to enhance transparency in carbon and nature credit generation and utilisation.

As world governments strive to reach a new global finance climate agreement at Cop29, experts have indicated that an annual flow of at least one trillion US dollars into developing countries by 2030 is crucial to meet the goals set out in the 2015 Paris Agreement. This financial support is essential in limiting the impact of global warming and ensuring a sustainable future for all.

In summary, the UK’s pledge of £79 million in climate finance for energy projects in developing countries underscores its commitment to driving clean energy innovation and supporting regions most vulnerable to the effects of climate change. The funding will not only aid in energy transition efforts but also contribute to global decarbonisation initiatives, highlighting the importance of international cooperation in tackling the climate crisis.