18:00 The Minister of State, Foreign, Commonwealth and Development Office (Anne-Marie Trevelyan)

IFAD is unique. It is both a specialised United Nations agency and an international finance institution. It provides loans and grants to developing countries for programmes that improve food security and nutrition, support adaptation to climate change, empower women and increase incomes. IFAD is a comparatively small organisation, with a very specific mandate. It works exclusively in the rural areas of developing countries—where around 80% of the world’s poorest people live—to help to end extreme poverty and hunger. Most of those people depend on agriculture, and growth in this sector is up to three times more effective than in other sectors in raising incomes among the poorest. Investing in IFAD makes sense in order to reduce both poverty and food insecurity. Agriculture is crucial to economic growth, and in some of the least developed countries, it can account for more than 25% of GDP.

Covid-19 and climate change have had a devastating impact on the lives and livelihoods of some of the world’s poorest people. IFAD’s 12th replenishment consultation focused on supporting recovery and building back better. Since then, Russia’s invasion of Ukraine has multiplied the threats for developing countries, exacerbating the risks of a food security crisis.

In the IFAD12 replenishment negotiations, the UK, together with the other member states, secured commitments from IFAD to allocate 100% of core replenishment funding to the poorest countries and at least 50% to Africa; to step up focus on climate change and ensure that at least 40% of core funding supports that; to dedicate at least 25% of core resources to fragile situations, particularly in the Sahel and the horn of Africa, strengthening collaboration with partners to help reduce humanitarian need; and to continue strengthening its focus on social inclusion, empowering women and girls, indigenous peoples and persons with disabilities.

I will cover that. The hon. Gentleman raises exactly the point about the challenges of food insecurity and the extended challenges that so many communities and countries face, not only because of the impacts of the disruption to supply chains from covid-19, but because the climate change impacts driving such things as famine are becoming more and more common.

I will set out IFAD’s aims over the coming replenishment period. It aims to increase the incomes of over 60 million people and help to improve the agricultural production of over 50 million people, while improving market access —the all-important aspect—to sell produce to over 50 million people and enhance the resilience of 28 million people, including, as the hon. Member for Blaenau Gwent mentioned, to the challenges that climate change is bringing to some of those communities.

IFAD is also increasing its work on climate change, building on the UK-supported adaptation for smallholder agriculture programme to channel climate finance directly to the most vulnerable. The programme has reduced forest and land fires in Indonesia and boosted prosperity for local people. The challenges of bringing enhanced sustainable management to over 3 million hectares of peatland across Indonesia, for instance, have helped to prevent 20 million tonnes of carbon emissions and restore nature. IFAD is focused on those most critical areas.

IFAD is also partnering with the Green Climate Fund and others to help countries access larger pots of climate finance, particularly in Africa. That includes the joint programme for the Sahel in response to the challenges of covid-19, conflicts and climate change. The programme will strengthen the livelihoods of small producers, especially women and young people in very challenging, fragile contexts. Since its creation, there has been strong support across the House for IFAD and its impact on the lives of millions of the world’s poorest and most marginalised people.

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18:10 Preet Gill (Labour)

I am grateful to the Minister for outlining the IFAD order. I welcome the support that the replenishment indicates for tackling poverty, food insecurity and climate change, and for promoting agricultural development in the world’s poorest countries.

Small-scale food producers in poor countries have been among the hardest hit by the food crisis, which has been compounded by the lingering effects of the pandemic, global inflation, accelerating climate change, and conflict. Our continued commitment to IFAD is therefore completely necessary if we are to achieve sustainable development goal 2 by 2030. I am happy to confirm that we will not seek to divide the Committee on this issue today.

We know the consequences when extreme poverty is allowed to fester: conflict, as in the Sahel; irregular migration and displacement; and the deep moral injury of lost lives, lost opportunities and lost human potential. It is firmly in the UK’s interests to continue to invest in IFAD’s work for that reason. Every billion of investment has increased the incomes of 8.6 million beneficiaries by 20%. IFAD’s work is at the frontline of some of the great challenges facing the world, creating enough sustainable jobs and food to meet the challenges of population growth; adapting and building resilience to climate change; and addressing a global hunger crisis that is, at this moment, killing someone in east Africa every 32 seconds. I therefore welcome that at least half of IFAD’s funding in the replenishment will go towards rural development projects in sub-Saharan Africa—a continent of 1.4 billion people just miles from Europe. Africa’s strategic importance to the UK should not be understated.

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