UK strengthens approach to global energy transition following ICAI review
8 Oct 2026
The Independent Commission for Aid Impact (ICAI) has welcomed early government progress in responding to its review of UK aid for energy transition, while highlighting areas where further work is needed to translate commitments into delivery.
The review, published in November 2025, examined UK support for energy transition in developing countries and made six recommendations aimed at improving strategy, coordination, monitoring, partnerships and the mobilisation of finance. Six months later, ICAI wrote to the government to follow up on progress implementing the recommendations. The government provided us with an update, which we have published along with our assessment of this statement and supporting evidence.
ICAI found strong evidence that the government is moving towards a more coherent and strategic approach to supporting energy transition in developing countries, despite the challenges posed by aid budget reductions.
The aid watchdog highlighted the role of the UK’s new international climate finance strategy (ICF4), which includes a dedicated focus on transforming the global energy system. ICAI noted that the government is also adopting a clear and specific definition for energy transition.
The follow-up assessment identified improvements in strategic planning, portfolio management and cross-government coordination. New governance arrangements, including a dedicated cross-government group, and strengthened oversight of climate finance, were seen as positive steps towards greater coherence and accountability.
ICAI additionally welcomed efforts to strengthen monitoring, evaluation and learning, including plans to improve data, refine key performance indicators and embed learning across the UK’s international climate finance portfolio.
However, ICAI said further progress is needed in several areas. The 2025 review identified that the UK was already supporting at least seven different alliances and diplomatic initiatives with overlapping energy transition aims. While the government has taken steps to streamline alliances and partnerships, ICAI found progress on demonstrating results remains slow and there are still questions over how performance will be measured. ICAI also called for greater clarity on how the UK will support investment across different country contexts and stages of the development and investment cycle.
ICAI’s assessment notes that while the new strategy contains commitments on poverty reduction, equality and inclusion, it remains too early to assess how these ambitions will be implemented in practice, particularly as bilateral aid is reduced.
ICAI will carry out a further follow-up assessment in 2027, focusing on how the government’s new commitments and governance arrangements have been implemented, and whether they are delivering the intended results.
ICAI Commissioner Harold Freeman, who led the review, said:
“We are encouraged by the progress the government has made in a relatively short space of time. The new international climate finance strategy shows evidence of stronger strategic planning, better coordination and a clearer approach to supporting developing countries to transition to clean energy.
“The challenge now is turning strategic objectives into practical results, particularly on partnerships, accountability and mobilising investment where it is needed most.”
Read the full government progress update and ICAI’s latest assessment.