Funding bus fare cap through climate loans will worsen debt burden on climate-vulnerable countries, Bond warns

In reaction to the UK government’s decision to switch international climate finance grants to loans, to fund a bus fare cap, Romilly Greenhill, CEO of Bond, the UK network for NGOs, said:

“It is disappointing that the new Prime Minister is picking up where the previous one left off, by continuing to raid the diminished UK aid budget to prop up much-needed funding for the cost of living crisis here in the UK.

The cost of living crisis in the UK needs to be urgently addressed, but robbing Peter to pay Paul is not the answer and pitches marginalised communities in the UK against marginalised communities in lower-income and climate-vulnerable countries. Climate finance must not worsen the debt burden of countries that are already suffering the worst – and most costly – impacts of a climate crisis they did not cause.

This decision may also constitute a further cut to the UK aid budget, which has already been gutted by the Labour government, and sets a worrying tone for this new Cabinet’s approach to supporting people in need worldwide while also reversing progress towards a safer, healthier and more stable world for us all.

We urge the new Prime Minister, Foreign Secretary and Secretary of State for DESNZ to work together to ensure high-quality international climate finance is protected, and rule out further cuts to the UK aid budget.”

ENDS.

Notes to Editors:

1. The UK government announcement on the bus fare cap policy is available to read here.
2. Read the reaction to the announcement by Climate Action Network UK here.
3. Bond unites and supports a diverse network of over 350 civil society organisations from across the UK, and allies to help eradicate global poverty, inequality and injustice.
4. For further information or interviews, please get in touch with Emily Loynes at [email protected] or 07909947850