UK aid for energy transition supports developing countries to deliver the emission reduction goals set in the 2015 Paris Agreement. In 2021, the UK committed to supporting low- and middle-income countries to access the innovation and tools needed to transition to ‘net zero’ during the UN Climate Change Conference in Glasgow. Since then, the UK has channelled a significant part of its overall pledge of £11.6 billion in aid for international climate finance towards helping developing countries meet their clean energy aims.
This review will assess the relevance and effectiveness of the UK’s support for clean energy transition in developing countries from 2021-22 to 2025-26. It will focus on the UK’s strategic priorities, its partnerships and alliances with other countries, and the effectiveness of its efforts to mobilise and leverage private finance to support the energy transition objectives of low- and middle-income countries.
Findings
- The UK’s energy transition efforts in developing countries are highly relevant to addressing the climate crisis. The UK has shown longstanding political commitment, offered substantial funding, and demonstrated technical expertise.
- However, the UK’s approach lacks a comprehensive strategy for achieving its energy transition objectives, with more than 80 energy transition-related programmes and activities. This is likely to hamper coherent decision-making and must be addressed to secure the best value for money.
- The UK’s international climate finance monitoring and learning system is strong compared to other donors. However, it provides an incomplete picture for the UK’s energy transition work, with data limitations that make it harder to measure impact.
- The UK has adopted a responsive approach to forming and supporting Just Energy Transition Partnerships. But funding has been slower than intended, with actual project spend lagging behind expectations and progress on reducing coal use off track.
- The UK has played a central role in creating several international alliances, but the proliferation of these alliances risks fragmentation and duplication.
- A growing emphasis on mobilising private finance could divert support away from lower-income countries most in need, where investment is riskier.
- There has been some good coordination between UK government departments, but unclear responsibilities and fragmented governance are weakening the UK’s overall approach.
