The UK Government has committed £79 million in climate finance to fast-track clean energy projects in developing countries, aiming to support the global energy transition and mitigate the effects of climate change.
This substantial investment will focus on accelerating the adoption of renewable energy technologies in vulnerable regions, including African nations and small island states that face the greatest risks from the climate crisis.
The announcement was made at Cop29 in Azerbaijan by Energy Secretary Ed Miliband, who stated that the funding will target innovations in low-carbon energy, energy storage, zero-emission generators, and clean transportation solutions.
The UK’s investment also aims to decarbonise heavy industries such as steel, chemicals, cement, and concrete, contributing to the broader goals of a global green economy.
The £79 million forms part of the UK’s existing pledge to spend £11.6 billion on climate finance over five years, up to 2026. The key allocations of the £79 million include:
• £45 million for the World Bank’s Energy Sector Management Assistance Programme, which helps developing countries tackle energy challenges.
• £15 million to Innovate UK, which will support clean energy innovations in developing countries.
• £14 million to the UN Industrial Development Organization (UNIDO) for projects aimed at industrial decarbonisation and advancing clean hydrogen technology.
• £5 million to support initiatives in developing countries aimed at tackling methane emissions in the fossil fuel sector.
Miliband said: “Climate change does not respect borders, and the UK has seen a year of record-breaking warmth.
“That’s why we are determined to lead from the front and drive global change, to protect future generations at home and abroad.”
In addition to this funding, the UK has helped set the framework for voluntary carbon markets at Cop29, with new integrity principles designed to boost transparency and accountability in the generation, trade, and use of carbon and nature credits.
These measures are designed to ensure more financial resources flow into developing countries, helping them meet their climate goals.
The UK’s efforts come at a critical time, with experts highlighting the need for at least one trillion US dollars in climate finance to flow into developing countries annually by 2030 to meet the goals of the 2015 Paris Agreement.
With this commitment, the UK is reaffirming its leadership in driving global climate action and supporting a sustainable, low-carbon future for all.
