UK aid for energy transition

Findings

• The UK’s energy transition efforts in developing countries are highly relevant to addressing the climate crisis. The UK has shown longstanding political commitment, offered substantial funding, and demonstrated technical expertise.  
• However, the UK’s approach lacks a comprehensive strategy for achieving its energy transition objectives, with more than 80 energy transition-related programmes and activities. This is likely to hamper coherent decision-making and must be addressed to secure the best value for money.  
• The UK’s international climate finance monitoring and learning system is strong compared to other donors. However, it provides an incomplete picture for the UK’s energy transition work, with data limitations that make it harder to measure impact.  
• The UK has adopted a responsive approach to forming and supporting Just Energy Transition Partnerships. But funding has been slower than intended, with actual project spend lagging behind expectations and progress on reducing coal use off track.  
• The UK has played a central role in creating several international alliances, but the proliferation of these alliances risks fragmentation and duplication.  
• A growing emphasis on mobilising private finance could divert support away from lower-income countries most in need, where investment is riskier. 
• There has been some good coordination between UK government departments, but unclear responsibilities and fragmented governance are weakening the UK’s overall approach.

Recommendations

The review makes six recommendations for strengthening the UK’s support for energy transition in developing countries. These include developing a clear and inclusive energy transition strategy that supports poverty reduction, improving coordination across departments, and using funding effectively through different channels.  

ICAI also calls for the UK to improve how it tracks results and learns from its energy transition programmes, clarifies the role of international partnerships and alliances, set realistic targets, and clearly define how it plans to attract additional finance tailored to different countries’ needs.