Foreign, Commonwealth and Development Office

I have today laid a departmental minute outlining details of a new liability (the India green guarantee) which FCDO plans to undertake in order to guarantee up to US$1 billion (£746 million at the current exchange rate) in lending from the World Bank to India.

It works in more than 170 countries globally to reduce extreme poverty, boost shared prosperity and address global challenges such as climate change.

The India green guarantee to the World Bank will unlock additional lending worth US$1 billion for green projects in India. This financing will be used for projects that address climate change and will be designed to maximise impact through relevant approaches described in the departmental minute.

It is normal practice, when a Government Department proposes to undertake a contingent liability in excess of £300,000 for which there is no specific statutory authority, for the Minister concerned to present a departmental minute to Parliament giving particulars of the liability created and explaining the circumstances; and to refrain from incurring the liability until 14 parliamentary sitting days after the issue of the statement, except in cases of special urgency.

The UK is creating this new liability for two reasons. First, to meet a clear climate financing need. India is pivotal in the global effort to tackle climate change. It is raising its climate ambition but will need enhanced financial support in order to do so. Secondly, to alleviate constraints on World Bank lending to the Government of India. The departmental minute provides further detail on these issues and how the guarantee addresses them.

The liability is expected to last for up to 25 years. FCDO would only pay official development assistance if a default occurs as agreed with the World Bank. The departmental minute sets this out in detail.

HM Treasury has approved the proposal in principle. If, during the period of 14 parliamentary sitting days beginning on the date on which this minute was laid before Parliament, a Member signifies an objection by giving notice of a parliamentary question or by otherwise raising the matter in Parliament, final approval to proceed with incurring the liability will be withheld pending an examination of the objection.

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On Tuesday 16 and Wednesday 17 November, I chaired the ninth UK-Overseas Territories Joint Ministerial Council in London. The Council was the first in person since 2018 and was attended by elected leaders and representatives from Anguilla, Ascension Island, Bermuda, the British Virgin Islands, the Cayman Islands, the Falkland Islands, Gibraltar, Montserrat, Pitcairn Islands, St Helena, the Sovereign Base Areas of Akrotiri and Dhekelia, Tristan da Cunha and the Turks and Caicos Islands.

The key themes of discussion at this year’s Council were environment and oceans, the International Maritime Organisation III code audit, the UK-overseas territories relationship, economic resilience, law enforcement, the response to and recovery from covid-19, the importance of mental health and protecting the vulnerable, and improving inclusivity in our societies.

Mr right hon. Friends the Prime Minister, and the Foreign Secretary, as well as HRH The Duke of Cambridge, addressed the Council. Other ministerial colleagues attending the discussions included the Minister for the Pacific and International Environment (the right hon. Lord Goldsmith), the Under-Secretary of State for Transport, my hon. Friend the Member for Witney (Robert Courts), the Minister for Security and Borders, my right hon. Friend the Member for East Hampshire (Damian Hinds), the Exchequer Secretary to the Treasury, my hon. Friend the Member for Faversham and Mid Kent (Helen Whately), the Minister for Health, my hon. Friend the Member for Charnwood (Edward Argar) and the Under-Secretary of State for Education, my hon. Friend the Member for Colchester (Will Quince). I was also joined by the Under-Secretary of State for Foreign, Commonwealth and Development Affairs, my hon. Friend the Member for Aldridge-Brownhills (Wendy Morton)

The Council agreed priorities and set out a number of important commitments and areas for joint work in the year ahead.

We discussed the importance of protecting the unique environments and biodiversity in the overseas territories, recognising that these are on the frontline of the effects of climate change. The territories expressed thanks to the UK for facilitating their presence at the COP26 summit. We agreed to prioritise climate change and environmental issues in future funding for the territories.

We reaffirmed our commitment to supporting the overseas territories in building successful and resilient economies, acknowledging the impact of external shocks, such as the covid-19 and natural disasters on the small and vulnerable economies of territories.