This is a House of Commons committee special report, including a government response to an earlier committee report.
International Development Committee
UK Small Island Developing States Strategy
Date Published: Monday 13 January 2025
The International Development Committee published its Fourth Report of Session 2023–24 The UK Small Island Developing States Strategy (HC 476) on 1 May 2024. The Government’s response was received on 11 December 2024 and is appended below.
1. The Government welcomes the International Development Committee (IDC) inquiry and subsequent report on the UK’s Small Island Developing States Strategy. The FCDO is grateful to the IDC for identifying important thematic areas for continued and increased HMG policy and programmatic support on SIDS.
2. Small Island Developing States are vital partners for the UK. The UK Government is committed to supporting the most vulnerable states to build resilient and prosperous futures. The FCDO is working with the international community to build on the achievements of the UN 4th SIDS Conference (SIDS4) in May 2024 and drive further action on international climate action and global finance reform.
3. The UK is supporting SIDS to increase their climate resilience and protect their biodiversity through international advocacy and programmes. The UK is amplifying SIDS voices to build coalitions for reform, including tackling onerous bureaucracies that impede access to concessional finance, and efforts to get SIDS the support they need on loss and damage.
4. UK support also includes the recent announcements at COP29 of a further £10 million to the Global Environment Facility’s Special Climate Change Fund to provide adaptation finance to Small Island Developing States and £5.3 million to the Pacific Catastrophe Risk Insurance (PCRIC) to make sure more Pacific countries have the insurance they need in place before catastrophic weather events strike.
5. This Government response addresses the committee’s recommendations in the order in which they appear in the ‘Conclusions and Recommendations’ section of its report.
The Government must honour the commitment it made to provide the Committee with a written update on progress in delivering the SIDS Strategy across the six areas of focus by 30 September 2024. Points that the report should cover are listed in Annex 1. (Paragraph 14).
Partly Agree
6. The FCDO paused the drafting of the progress report following the announcement of the general election and appointment of the new Government. However, the FCDO will submit a progress report, as part of a wider UK SIDS Strategy refresh exercise, which will reflect the new Government’s priorities, as well as the recommendations of the IDC report.
The UK Government should use its membership of, and influence within, the OECD to advocate that ODA eligibility criteria be reformed to reflect SIDS’ vulnerabilities. This could take the form of a ‘small island exception’ as employed by the World Bank or a Multidimensional Vulnerability Index (MVI), such as that currently being considered by the United Nations. (Paragraph 25).
Partly Agree
7. The FCDO agrees that the current process for assessing SIDS’ readiness to be classified as high-income countries requires improvement. UK representatives are using our influence within the OECD to advocate for strengthened ODA processes to reflect and incorporate SIDS’ vulnerabilities better. The UK is currently working with like-minded donors to do this including through the UK co-chaired Partnership for Action of DAC and Alliance of Small Island States (AOSIS) members, launched at the UN SIDS4 Conference. All UK ODA spending is consistent with the international rules agreed by the OECD’s Development Assistance Committee. The rules on ODA-eligible spend can only be changed if all 32 OECD Development Assistance Committee members agree.
8. The UK supports the Glasgow Climate Pact’s principle that providers of finance should consider vulnerability in finance decisions. The World Bank’s Small Economies Exception is a good example of this. The FCDO appreciates the ongoing work at the UN to develop a multidimensional vulnerability index (MVI), which can be a useful tool to assess vulnerability. However, further improvements are needed to the UN MVI and the UK will continue to engage to improve its technical robustness.
The UK Government should use its co-chairmanship of the Green Climate Fund’s board to advocate for policies that will improve SIDS’ access to GCF resources, consistent with the commitments outlined in its 2024–27 Strategic Plan—especially in the area of simplified application procedures. (Paragraph 28).
Agree
9. The Government is committed to improving access to climate finance for all, including for SIDS which are widely acknowledged to face particular challenges in accessing climate finance. This includes improving access to the Green Climate Fund (GCF), the world’s largest dedicated climate fund for developing countries and a key part of the climate finance architecture.
10. As Co-Chair of the Board of the GCF in 2024, alongside the Dominican Republic (itself a Small Island Developing State), the UK has supported the delivery of reforms needed to improve access and bring the fund closer to those it serves, including SIDS, in line with the 2024–2027 Strategic Plan. This has included a restructuring of the GCF’s Secretariat to improve the service it offers partner countries, and work to streamline and speed up project approval processes. The UK has ensured progress on two policies key for improved access - regional presence, and reforms to the Fund’s approach to accreditation - both of which will come to the Board for decision in 2025.
11. During 2024, the GCF has approved over $2.5 billion of funding (with co-financing of over $7.1 billion) which has included new projects in Barbados, Tonga, Cook Islands, Belize and a regional Caribbean programme. 11% of the GCF’s total portfolio of $15.9 billion as at end March 2024 is allocated to SIDS, with 50% of adaptation funding targeted at SIDS, LDCs and Africa.
12. The Government remains committed to working with fellow GCF Board Members, the incoming Co-Chairs, the GCF’s Executive Director, and all stakeholders, to build on the progress made in 2024. The UK remains focused on the GCF achieving the commitments set out in its 2024–27 Strategic Plan, including enhancing the speed and simplicity of access to the Fund.
The UK Government should ensure that any climate finance it reports as grant funding is disbursed to recipient countries as such, and not in the form of loans. (Paragraph 33).
Partly Agree
13. The scale of investment required by emerging markets and developing economies (EMDEs) to deliver a just climate transition is enormous. By 2030 EMDEs excluding China will require $2.4 trillion a year for climate alone. Driving more private capital for climate and development is an important component of wider efforts to reform the international financial system and is a key priority for our low- and middle-income country partners, featuring prominently in the Bridgetown Initiative, UN SDG Stimulus, the Nairobi declaration and the Paris Agenda for People and the Planet.
14. The UK uses ODA, often in the form of grants, to develop support specialist agencies to develop and deliver financing innovations which can mobilise significant investment into more challenging sectors and geographies and be scaled by markets. The UK is committed to meeting the UK pledge to spend £11.6 billion in International Climate Finance between 2021/22 and 2025/26. The UK ICF portfolio crowds in private finance, with £7.8 billion private finance mobilised to EMDEs to date.
15. Developing countries require significant investment to drive up their economic development, meet the SDGs and stay on a path to a net zero society by 2050. Global ODA will play an important role, but it is essential that the international community also catalyse responsible investment that mobilises private finance and meets high quality standards, leads to improved economic and social outcomes and avoids creating more debt among developing countries.
Therefore, in addition to using its own influence within international financial institutions to advocate for reforms that benefit SIDS, the UK Government should also explore how SIDS might be better represented on the World Bank and IMF boards, potentially using the Green Climate Fund’s governance structure as a guide. (Paragraph 36)
Agree
16. The UK is championing the priorities of vulnerable countries, including SIDS, at the International Finance Institutions. The UK is working through international finance institutions to ensure they are responsive to the needs of those most vulnerable countries. This includes supporting system reform to reduce the barriers that vulnerable countries face in accessing essential finance, encouraging tailoring of MDB systems to work for their unique contexts and needs, and pioneering innovative tools to strengthen debt sustainability, such as Climate Resilient Debt Clauses. The UK will continue to champion greater voice for the lowest income and most vulnerable countries on the World Bank and IMF Boards – alongside longstanding support for the African and Caribbean Banks where countries from those regions own more than 55% of the shares.
Now that the agreement is in place, the UK Government should use its seat on the Loss and Damage Fund board to advocate that the Fund disburses its funding in the form of grants. (Paragraph 43).
Partly Agree
17. The UK was one of the first countries to pledge support to help to establish the new Fund for responding to Loss and Damage. Through our seat on the Fund’s Board, the UK will push for minimum allocations for the poorest and most vulnerable countries and communities, particularly for SIDS and Least Developed Countries (LDCs) to ensure that they receive the support that they urgently need. UK representatives will push for ambitious financing for the Fund including by diversifying the funding base and exploring new and innovative sources of financing. The UK also recognises the need for highly concessional finance for interventions to address Loss and Damage.
The UK Government should pledge new and additional funding to the Loss and Damage Fund. (Paragraph 45).
Disagree
18. The UK made an early pledge of up to £40 million at COP28 to demonstrate commitment to the establishment of the Fund for Responding to Loss and Damage (FRLD) and urges others to also contribute. Drawing on the ICF enabled the UK to make an early commitment. The UK will use our seat on the Board of the new Fund to promote financing at scale to tackle loss and damage. This will include identifying mechanisms for the Fund to access new and additional finance. The UK’s contribution to the Fund is part of the UK’s £11.6 billion commitment to help to tackle climate change in the poorest and most vulnerable countries in the world. The FRLD is still in the process of being established and the UK will consider whether to contribute further funds once progress has been made on an operating model and resource allocation.
In the light of the ILC’s impending report on the topic, the UK Government should commit to working with like-minded states to explore ways of (i) formally recognising the continuity of Small Island Developing States’ legal statehood, should all their inhabitable land disappear due to sea-level rise and (ii) recognising countries’ legal maritime zone boundaries as fixed, even if their coastlines retreat due to sea level rise. (Paragraph 49).
Partly Agree
19. The UK recognises that sea level rise is matter of critical concern for many SIDS. The UK has changed its position to accept that baselines under the UN Convention of the Law of the Sea (UNCLOS) – and hence the maritime zones measured from them - may remain fixed in law. The UK supported text to this effect in the CHOGM Ocean Declaration and published a Written Ministerial Statement on 28 October setting out the Government’s position.
20. The Government has taken careful note of the Pacific Islands Forum 2023 Declaration on the continuity of statehood in the face of sea level rise and are considering its content in detail. The UK recognises the significance of this initiative in addressing the unique challenges faced by Pacific Island nations and are closely considering its content and implications in detail. The International Commission’s Study Group is also conducting an in-depth review of international law through the lens of the law of the sea, statehood, and protection of persons and the UK will be considering its consolidated report in 2025 carefully.
21. Sea-level rise is a complex, global challenge, requiring robust science to guide our hand as we strive for maximum ambition in tackling climate change. The UK is proud to work with international partners to deliver innovative research addressing the threats posed by sea-level rise. Through CLARE, our £110+ million research programme on climate adaptation and resilience, the UK supports evidence-based adaptation action for coastal island communities, for example supporting island communities in Fiji, Mauritius and Maldives to increase their resource self-reliance, reduce vulnerability to climate risks, and increase climate adaptation capacity.
In its partnerships with SIDS, the Government should therefore commit to making multi-year funded programmes the norm. (Paragraph 58).
Partly Agree
22. The FCDO currently has several multi-year programmes focused on supporting SIDS, including through our two centrally managed programmes: Small Island Developing States Capacity and Resilience (SIDAR), and Sustainable Blue Economies (SBE). The FCDO aims to strengthen and develop these as the Spending Review process proceeds and as the government considers how to allocate resources most effectively during the Spending Review period. Multi-year programmes will always be subject to financial allocations within the Spending Review context, and agreements with partners must feature break clauses where they span different periods.
The Government should consider providing a small amount of direct funding annually to the Alliance of Small Island States Secretariat to support its work of amplifying SIDS’ collective voice in international fora. The 4th SIDS Conference in May presents the ideal forum at which to announce this. (Paragraph 61).
Partly Agree
23. The FCDO has already provided financial support to AOSIS for several years and is currently agreeing the next round of support with Palau, the incoming AOSIS Chair for 2025–26. This support to date has included £471,000 in 2023–24, including funding for ocean and sustainable development advisers and preparatory events for the UN 4th SIDS Conference. Due to the timing of the pre-election period, the UK delegation did not make any financial announcements at the UN 4th SIDS Conference.
In its approach to SIDS, the FCDO should ensure that the gendered impacts of SIDS’ environmental and developmental challenges are identified and addressed, and that UK support for SIDS is designed and implemented in a way that considers the impact of any interventions on women and girls. It should: (Paragraph 69)
a. ensure that the FCDO’s bilateral aid programmes with SIDS, as well as centrally managed programmes, are on track to meet the commitment, outlined in the White Paper, that 80% of bilateral aid programmes have a focus on gender by 2030;
b. support SIDS in collecting gender-disaggregated data to map the differential impact of development challenges and policy interventions on women and girls;
c. make the promotion of gender equality an explicit, discrete investment criterion of the Blue Planet Fund.
Agree
24. The Government recognises that women and girls and other vulnerable and disadvantaged groups are disproportionately impacted by the economic shocks and climate impacts experienced by SIDS. The UK is prioritising a gender-responsive and socially inclusive approach to programmes in SIDS. FCDO remains committed that at least 80% of our bilateral aid programmes will have a focus on gender equality by 2030. While gender does not specifically feature in the external draft of the strategy, the FCDO is committed to mainstreaming gender across our programming and championing women’s voices in international advocacy.
25. For example in the Caribbean, our £350 million UK Caribbean Infrastructure Fund integrates gender equality, working to ensure that infrastructure meets the needs of all, promoting employment and livelihood development for women, and helping tackle risks of gender-based violence in the infrastructure space. The Caribbean Economic Development Programme has a strong focus on women’s economic empowerment through policy development and support to women-owned firms under the Compete project (£10.1 million UK contribution). Our £15 million Violence Prevention Partnership is working to help the Government of Jamaica tackle some of the gender issues driving high levels of violence by and among young males, as well as violence against women and children.
26. The UK recognises that the lack of timely, accessible, disaggregated data in SIDS constrains their ability to plan and implement appropriate policies and programmes to increase development and resilience for the benefit of all. The UK has been working to ensure that sex-disaggregated data is received where relevant for our development projects in SIDS, such as data on beneficiaries and employment, and appropriate analysis. The UK is also helping to tackle the systemic data challenges in SIDS. The UK is already providing some support to improved economic data in the Caribbean, and more recently, the UK worked with Dominica, Grenada, Saint Lucia and St Vincent and the Grenadines to help improve their ability to produce and disseminate relevant and useful disaggregated data on key welfare indicators. The project will build capacity within National Statistics Offices, modernizing and improving data production and distribution.
27. The Blue Planet Fund (BPF) Investment Criteria were developed and used to support the development of strategic and impactful BPF programme portfolio. They included reviewing gender performance as part of a criterion on poverty reduction potential. The Investment Criteria are currently being refreshed in light of the findings of the Independent Commission for Aid Impact’s review of the Blue Planet Fund, including to strengthen the focus on gender equality and social inclusion through a dedicated criterion.
The Government should prioritise the laying before Parliament of the primary legislation necessary for ratifying the Global Ocean Treaty before the next election. (Paragraph 75).
No longer relevant/Overtaken
28. The BBNJ Agreement is an important step toward coordinated global action to tackle the climate and nature crisis. The Agreement demonstrates the ongoing role of multilateral institutions in facing global challenges and cements the UN Convention on the Law of the Sea (UNCLOS) as the cornerstone of ocean governance. It will enable greater conservation of the two-thirds of the ocean that lies beyond national jurisdiction. It will support the delivery of the Kunming-Montreal Global Biodiversity Framework – that includes the target to effectively conserve and manage at least 30% of the ocean by 2030.
29. The Government is committed to ratification of the BBNJ Agreement, which is in line with our determination to reinvigorate the UK’s wider international leadership on climate and nature. Work is in hand on the measures needed to implement the detailed and complex provisions of the Agreement before the UK can ratify.
This Committee urges the Government to implement the next steps on domestic opportunities for climate leadership outlined in the Climate Change Committee’s January 2024 Briefing Note. (Paragraph 80).
Agree
30. The Government values the important role the Climate Change Committee plays as our independent advisor on climate change. The Government pays close attention to the advice of the Climate Change Committee and is leading an increase in climate ambition from the UK domestically which will enhance our climate leadership.
31. The Government is committed to taking urgent action to achieve our targets, as the CCC recommend in their 2024 Progress Report. The net zero transition will not only be the economic opportunity of the century, but it will also support the creation of hundreds of thousands of good jobs across the UK, protect our economy from future price shocks that reliance on fossil fuels create, while delivering a range of social and health benefits.
32. That is why making Britain a clean energy superpower is one of the five missions of this Government - delivering clean power by 2030 and accelerating to net zero across the economy. The Government will deliver an updated plan in due course out to the end of carbon budget 6 in 2037 with full detail of policy packages for all the sectors.
33. As set out on 12th November 2024 to the House of Commons by DESNZ Secretary of State Ed Miliband and to the House of Lords by Lord Hunt of King’s Heath, the 2035 UK Nationally Determined Contribution is based on advice from the independent Climate Change Committee (CCC). This commits the UK to reducing economy-wide greenhouse gas emissions by at least 81% by 2035, compared to 1990 levels, excluding emissions from international aviation and shipping. It is a clear progression on the UK’s previous NDC pledging to reduce emissions by at least 68% by 2030. It was informed by the outcomes of the Global Stocktake from COP28 and is aligned with limiting global warming to 1.5°C. It is aligned with the level of ambition in Carbon Budget 6 (2033–37) on the pathway to net zero by 2050.
34. Further detail on this will be given to the UN by February and laid before Parliament.