The British government’s decision to slash its overseas aid budget has sparked criticism and raised serious concerns about its ability to fulfill critical climate finance commitments to developing nations.
Environmental experts and humanitarian organisations warn that this move could have devastating consequences for vulnerable countries already grappling with the escalating impacts of climate change, environmental crises, and food insecurity.
Critics argue that this decision reflects a shift in priorities, potentially leaving millions in developing nations without the necessary resources to adapt to environmental crises and transition to sustainable practices.
On Tuesday, Prime Minister Keir Starmer announced a reduction in the UK’s overseas aid budget from 0.5% to 0.3% of national income. The UK’s climate finance initiatives are funded through its overseas aid budget, which had already been reduced from 0.7% to 0.5% before COP26 in 2021.
The timing is notable, as Prime Minister Starmer prepares to meet US President Donald Trump in Washington to discuss shared European defence responsibilities. This latest cut raises doubts about the UK’s ability to fulfill its promise of increasing climate finance to developing nations, a pledge reaffirmed at COP29.
Global reaction
The international development community has reacted with outrage to the UK government’s decision, condemning it as “a betrayal” of the world’s most vulnerable populations and “a catastrophic blow” to global efforts to combat poverty, inequality, and climate change.
Experts have emphasized that this decision comes at a critical juncture, as climate disasters are becoming more frequent and severe, and humanitarian needs are reaching unprecedented levels. They argue that slashing the aid budget undermines the principle of global solidarity, which is essential to addressing interconnected challenges such as climate change, food insecurity, and economic instability.
This move, they warn, could exacerbate existing inequalities and deepen the suffering of millions who rely on international support to survive.
“When we’ve just had the hottest January on record and humanitarian crises are escalating, slashing the UK’s overseas development assistance is deeply shameful,” said Teresa Anderson of ActionAid International.
Tom Mitchell, Executive Director of the International Institute for Environment and Development (IIED), criticized the move, suggesting that the UK should cut harmful fossil fuel subsidies before reducing vital aid.
The UK had pledged to allocate £11.6 billion ($14.7 billion) in climate finance to developing nations between 2021 and 2026. While the Labour government insists it remains committed to this goal, experts warn that achieving it will be difficult given the pressures on the shrinking aid budget.
An analysis by the UK’s Independent Commission for Aid Impact found that more than half of the pledged funds were expected to be disbursed in the final two years of the commitment, making timely delivery uncertain. Furthermore, the UK’s accounting adjustments have increased the reported climate finance figures without necessarily increasing actual disbursements to recipient countries.
The UK’s decision follows a pattern seen across Europe, with Germany, Sweden, France, Belgium, and the Netherlands all implementing significant cuts to their overseas aid budgets. Combined with the US administration’s recent decision to freeze USAID spending, the global development and climate finance landscape is becoming increasingly uncertain.
Consequences for Pakistan
The UK has long been one of the largest donors of overseas aid to Pakistan, supporting critical areas such as education, healthcare, climate resilience, and economic development. However, in recent years, the UK’s aid budget to Pakistan has seen a significant decline, prompting calls for the remaining aid to be more effectively targeted toward marginalised groups and minority communities.
The UK government describes Pakistan as an “important regional and strategic partner,” with a relationship rooted in culture, shared history, diplomacy, development, security, trade, and economic ties. The UK is also Pakistan’s third-largest source of foreign direct investment, underscoring the depth of their bilateral relationship. Despite this, the reduction in overseas aid has raised concerns about the UK’s commitment to supporting Pakistan’s development and climate adaptation efforts.
As of October 2023, the UK’s overseas aid spending for Pakistan has undergone significant changes due to the government’s decision to reduce the overall aid budget. This has led to a sharp decline in funding.
In 2021-2022, the UK allocated approximately £305 million in aid to Pakistan, supporting girls’ education, disaster preparedness, and support for Afghan refugees. In 2022-2023, the aid was further cut to around £200 million, impacting ongoing projects in education, climate resilience, and refugee support. Several programs were scaled back or discontinued.
For the financial year 2023-24, the Foreign, Commonwealth and Development Office (FCDO) formerly DFID, allocated £41.54 million in official development assistance (ODA) to Pakistan, with an indicative budget of £133 million for 2024-25 representing a nearly 52% reduction compared to 2021-2022 levels. The reduction in UK aid has had far-reaching consequences for Pakistan, particularly in education, healthcare, climate resilience, refugee support and economic development.
The UK’s support for girls’ education, a flagship initiative, is facing significant funding shortages. This could impact millions of children, particularly girls, who rely on UK-funded schools and scholarships. Programs aimed at increasing school enrolment, improving teacher training, and building educational infrastructure are at risk.
The UK aid has been critical in combating infectious diseases, improving maternal and child health, and strengthening healthcare infrastructure. Reductions in funding could lead to higher mortality rates and reduced access to essential services, especially in rural and underserved regions.
Pakistan’s vulnerability to climate change highlights the urgency of maintaining aid commitments. According to a 2022 report, Pakistan experienced the highest number of climate-related disasters that year, despite contributing less than 1% of global emissions. In contrast, developed countries, particularly the G20, are responsible for most emissions driving climate change. The UK’s decision to cut its climate finance budget by 40% will have devastating consequences for countries like Pakistan, where climate impacts are deepening poverty and exacerbating vulnerabilities.
Pakistan is one of the countries most vulnerable to climate change, facing threats such as floods, droughts, and extreme heat. UK aid has funded disaster preparedness, water management, and sustainable agriculture projects. Cuts could weaken these efforts, leaving millions more exposed to climate-related disasters.
Pakistan hosts millions of Afghan refugees, and UK aid has been vital in providing humanitarian assistance. Reduced funding could strain resources for refugee support, exacerbating an already dire situation.
Development organizations, climate activists, and humanitarian groups are urging the UK government to reconsider its decision. They emphasize that the cuts will have far-reaching consequences for vulnerable populations in Pakistan and beyond.
ODA initiatives at risk in Gilgit-Baltistan
The UK’s Official Development Assistance (ODA) has funded several initiatives in Gilgit-Baltistan. This region is highly vulnerable to climate change with risks such as glacial lake outburst floods (GLOFs), landslides, and extreme weather events.
The UK has supported initiatives to mitigate the risks of Glacial Lake Outburst Flood (GLOF), which are a major threat to communities in Gilgit-Baltistan. These projects include early warning systems, community training, and infrastructure development to reduce the impact of floods.
Disaster Risk Reduction (DRR) Programs: Funding has been allocated to strengthen disaster preparedness and response capabilities in the region. This includes training local communities, improving emergency response systems, and building resilient infrastructure.
Improving access to quality education, particularly for girls and marginalised communities, has been a key focus of UK ODA in Gilgit-Baltistan. The UK has supported programs to increase school enrolment and retention rates for girls, particularly in remote and underserved areas. This includes building schools, providing scholarships, and training teachers.
UK-funded initiatives have established community schools in areas where formal schooling is unavailable, ensuring that children in remote villages have access to education.
UK has supported efforts to improve healthcare services in Gilgit-Baltistan, where access to medical facilities is often limited, particularly initiatives to improve maternal and child health, including training healthcare workers, providing essential medical supplies, eradication of polio virus, and raising awareness about health and nutrition.
Environmental Conservation
Given Gilgit-Baltistan’s unique biodiversity and fragile ecosystems, UK ODA has supported environmental conservation efforts including restoration of degraded forests, manage watersheds, and promote sustainable land use practices, protect endangered species and preserve the region’s rich biodiversity.
While UK has made significant contributions to development in Gilgit-Baltistan, the recent cuts to the UK’s aid budget threaten to undermine these efforts. The region’s vulnerability to climate change and its limited infrastructure and resources make continued support critical.
Key priorities for future funding include scaling up climate adaptation and disaster preparedness initiatives; expanding access to quality education and healthcare; promoting sustainable economic development and livelihoods; strengthening governance and community empowerment.
Roshaan Din Diameri hails from Gilgit-Baltistan. He is an anchor and reporter working for the Saach TV channel in Islamabad.