Senior Cabinet ministers are set to meet City leaders on Tuesday to discuss unlocking private sector climate finance and disaster risk insurance for countries facing extreme weather events. Rachel Reeves, David Lammy, Ed Miliband and Steve Reed will attend the first multi-ministerial meeting with finance chiefs.
Foreign Secretary David Lammy (Labour) has pledged £12 million from the Government's reduced aid budget to enable faster payouts for nations experiencing climate shocks such as hurricanes and tornadoes. The funding aims to cut response costs and recovery times for countries hit by extreme weather.
Ministers target climate investment
The group will explore how the financial sector can channel investment into climate initiatives in emerging markets. The Government hopes the pre-arranged disaster relief funding will be triggered by warning signs like weather forecasts or actual events to speed up payouts.
The £12 million commitment comes after the Government slashed the UK's overseas aid budget from 0.5% of gross national income to 0.3% to fund increased defence spending. Britain's climate finance commitments are drawn from this reduced aid budget.
City's role in green finance
Lammy emphasised the economic opportunities for Britain in tackling the climate crisis. "The climate and nature crisis is the greatest global challenge we face," he said. "Failure to act will cause unprecedented environmental damage, fuelling displacement, conflict and famine."
The Foreign Secretary highlighted the potential for UK growth through green sector investment. "Tackling this crisis is also a huge opportunity for people and businesses here in the UK, delivering on our Plan for Change," Lammy said. "The green sector is worth trillions of pounds, and I'm determined that we seize on the economic growth, jobs and security it offers."
He described the City of London as "the world's leading sustainable development financing hub" with a crucial role to play in climate finance initiatives.
(PA) Note: This article has been edited with the help of Artificial Intelligence.
