Policy Updates

On June 4, 2025, new findings from the Global Climate and Health Alliance showed that only 21 of 195 countries party to the UNFCCC Paris Agreement have submitted updated NDCs for 2035, nearly four months past deadline with most NDCs mentioning health benefits, such as reduced air pollution, but few including systems to track health outcomes.

The GCHA reviewed 11 countries’ NDCs and found that while many reference health benefits, only the UK’s plan includes specific air quality monitoring. Kenya’s NDC aims for 100% renewable energy and a 35% emissions cut by 2035, yet does not explicitly measure air pollution benefits. Brazil’s NDC focuses on deforestation and fossil fuel transition but lacks clarity on new oil extraction and zero deforestation pledges. The US, after submitting its plan, has withdrawn its targets, weakening global momentum.

Recent NDCs highlight varied approaches: New Zealand targets “super pollutants” but is seen as unambitious; Japan’s continued fossil fuel use has significant health impacts; Canada is phasing out coal; and the UAE is developing a national monitoring system. However, most plans fall short of the 1.5°C goal, with the UK as a notable exception.

The World Bank estimates that halving global exposure to dangerous air pollution by 2040 would require annual investments to rise from US$9 billion in 2020 to US$14 billion in 2040. Despite this, climate finance commitments remain inadequate, and the ;abbrUS exit further strains resources.

On May 27, 2025, the UK FCDO celebrated milestones of the LSAP in Belize, funded under the UKCIF, where the UK US$32million to the Coastal Road Upgrading Project aimed at boosting economic resilience and creating sustainable livelihood opportunities in Gales Point and Mullins River villages.

Achievements include formalizing 80 MSMEs, surpassing the target of 40. Of these, 43 are female-owned and 37 male-owned. Additionally, 72 participants received entrepreneurial development training, with 59 earning certification. A Buy Belizean exhibition featuring 14 MSMEs is scheduled for June 14, 2025, in Dangriga Town.

The initiative reflects a strong commitment to inclusive economic development, job creation, and community empowerment, showcasing the deep engagement of local communities and the success of UK -Belize partnerships.

On May 27, 2025, BOND highlighted the UK government's opportunity to address global debt challenges as a countermeasure to the ODA cuts which are set to drop to 0.3% of GNI by 2027, and urged action on debt to mitigate the impacts of reduced funding and growing climate and development crises.

The organization emphasized the UK’s pivotal role, given its jurisdiction over sovereign debt contracts, and proposed reforms like a UN debt framework convention and improved transparency. It also advocated for legislative updates to compel private creditor participation in debt relief and measures to prevent liquidity crises in LICs.

BOND underscored that action on debt could restore fiscal space for developing nations, enabling investments in social services, climate adaptation, and economic development, while reinforcing the UK’s global leadership and commitment to poverty reduction.

On February 1, 2025, the UK government has announced GBP22 million (US$26 million) in additional humanitarian assistance for Myanmar in 2024-2025 to support nearly one million vulnerable people.

This funding will provide essential healthcare, nutrition assistance, and treatment for diseases such as tuberculosis and malaria. The support will also strengthen climate resilience by improving food security, water management, and disaster preparedness, helping communities withstand extreme weather events.

On January 24, 2025, the UK government’s discussions within the House of Commons on the Climate and Nature Bill were suspended.

This bill would make it legally binding for the UK to meet its international climate agreements. It was originally introduced by Liberal Democrat Roz Savage and was prevented over concerns from the Labour party that it was too ambitious and was unlikely to be upheld.

On December 3, 2024, UK Permanent Representative to the UN Ambassador Barbara Woodward made a speech at the FfD4 Second Preparatory event, highlighting the need to focus on international financial architecture reforms, and foster a bigger, better, and fairer financial system.

The FfD4 outcome hopes to build upon the Addis Ababa Action Agenda’s focus on an enabling environment, particularly towards women’s economic empowerment.

It will focus on vulnerability and the countries at risk of being left behind in order to improve shock responsiveness and progress State Contingent Debt Clauses and Disaster Risk Financing.

BII also announced a US$30 million investment in InfraCredit, to promote local currency financing to support the clean energy transition.

On November 28, 2024 UK Development Minister Anneliese Dodds announced the provision of GBP2 billion (US$2.6 billion), and increase of 40%, over three years to the IDA to go towards projects promoting economic growth, tackling poverty, and addressing the impacts of climate change.

The UK pledge for IDA20 was GBP1.4 billion (US$1.8 billiom) which was nearly a 50% cut from it's IDA19 pledge which was GBP3.1 billion (US$4 billion).

BOND welcomed the UK’s decision to increase its contribution to the World Bank’s IDA 21^st replenishment, calling it an important show of leadership ahead of the pledging conference. However, they urged the government to avoid cuts to other assistance areas by increasing the aid budget beyond 0.5% of GNI and setting a clear path to restore it to 0.7% in the upcoming Spending Review.

On November 19, 2024, at COP29, New Zealand, the UK, and IISD joined COFFIS, a coalition founded by the Netherlands.

The coalition focuses on increasing transparency on the use of fossil fuel, improving international agreements to enable the phase-out process, and supporting each other in national phase-out efforts.

IISD was designated as an organizational partner to support the coalition and coordinate knowledge-sharing among participant countries. The coalition will report again on its progress in 2025.

On November 13, 2024, UK Foreign Secretary David Lammy announced greater support for countries at the forefront of the climate emergency, and emphasized the need for new partnerships to help tackle illegal deforestation and support indigenous people.

At COP29, he committed to a new initiative supporting forest tenure rights for indigenous and local communities across the Amazon Basin. GBP9 million has also been made available to local scientists working to protect the Congo Basin, home to the world’s largest tropical peatlands to help protect vital natural CO2 storage areas.

GBP100 million of funding will be given for BII's new Mobilisation Facility, which will drive up to GBP500 million (US$647 million) of private capital into investments that support other countries in their transition towards net-zero.

Lammy also announced a guarantee of US$280 million to the new IFCAP initiative, which the UK is a founding partner together with the ADB, and other financing partners. The UK’s guarantee contribution will unlock US$1.2 billion of additional climate finance, at no upfront cost to the UK.

The UK's commitment to spend GBP11.6 billion (US$15 billion) of climate finance from 2021/2022 to 2025/2026 will continue to be honored. This includes at least GBP3 billion (US$3.8 billion) on nature, from which GBP1.5 billion (US$1.9 billion) will be dedicated to protecting and restoring forests.

Lammy underscored the UK’s commitment to halting and reversing deforestation, to protect areas which play a key role in absorbing CO2 emissions. This includes announcing partnerships aimed at improving forest management and a new 10-year investment to reduce illegal logging. The program will build on long-running UK initiatives to improve the governance of forests, support the trade of sustainable forest products, and crackdown on illegal ones.

On November 11, 2024, the CGD, examined the GBP1.5 billion (US$1.9 billion) UK ODA cuts within the context of the new government’s commitments, and explored what might be expected in the coming period.

In the new budget, total UK ODA, including the IDRCs, will drop from GBP15.3 billion (US$19.8 billion) in 2023, to GBP13.9 billion (US$18 billion) in 2024, and then rise to GBP14.3 billion (US$18.5 billion) in 2025.

The CGD noted that the UK needs to meet its ICF target which forms the UK’s commitment to international finance under the Paris Agreement. Given so much of UK ODA is made up of IDRCs, a significant proportion of what remains needs to be redistributed into climate finance, impacting emerging UK development policy priorities.

The UK is conducting reviews of their development policy led by Nemat (Minouche) Shafik, formerly Permanent Secretary at DFID, who has also held senior roles at the Bank of England, World Bank and IMF, London School of Economics, and Columbia University.