18:08 Alex Norris (Labour)

Fourthly, I was pleased with what the Minister said about aligning the work with the Paris climate agreement, but I want to probe that a bit more. In the recent general debate on climate change and global development—a very good debate indeed, with excellent contributions from across the House and a high degree of consensus—the Government assured the House that the big multilateral banks are aligning their climate finance with the targets of the Paris agreement. However, we are deeply concerned about the bank’s continued funding of fossil fuel projects after the Paris agreement, which the shadow Chancellor raised in his speech at Labour’s International Social Forum this weekend. At that conference, the Leader of the Opposition announced Labour’s plans to stop channelling finance through the World Bank’s climate investment funds, but instead to redirect them to the UN’s green climate funds—a move that would give more direct access to national and local actors, rather than concentrating funding in a handful of multinational development banks. I would be very interested to hear the Minister’s thoughts on that idea. In additoin, how will the Government ensure that all climate finance is spent in a way that ensures local ownership? Will he set out the ways in which the World Bank is aligning its investments with the Paris agreement, and how that will be monitored?

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18:17 Andrew Murrison (Conservative)

The hon. Gentleman would expect, and I would demand, that we use our seats on the boards of both those bodies to scrutinise carefully how money is spent, given the scope, and to ensure as far as we can that the expenditure accords with our own national priorities—I think he agrees with that, which is reassuring—and in particular our sense that more needs to be spent on the world’s poorest, on climate change and on gender equality. Those are clear UK values and norms which, given the scale of our contribution and that of like-minded partners, we expect to be expressed in how the money is disbursed.

I am running through all my points, but I still have “power stations” written down. I think it is intended to be a response to the comments of the hon. Member for Nottingham North on climate change. I thought that he might mention the coal-fired power station in Gujarat, which historically has been funded through the World Bank Group, through those initiatives. My defensive line—which, sadly, I will deploy, although he forgot to mention it—is that that is historical disbursement. I hope he has been reassured that our focus on climate change in the recent process makes that kind of expenditure at that scale far less likely to happen, although I completely understand the often differing imperatives of many of the countries with which we engage in this work. That is a debate for another day, but he who pays the piper calls the tune, and it is important that global public goods are satisfied by this kind of expenditure.

There are those who say, citing in particular China and India, “What are we doing spending all this money on middle-income countries?” Again, that is a debate for another time and place, but global public goods, as the name suggests, are global. We are all in this together, and we need to have some tangible way of persuading our middle-income partners and friends to develop their economies that in a way that protects our imperatives too, which have to do very largely with climate change and the other things I have described.

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