Foreign Secretary David Lammy announces £12 million funding package as senior Cabinet ministers meet with City of London leaders to advance sustainable finance for developing countries.
The UK government has unveiled a new £12 million funding initiative aimed at supporting climate-vulnerable countries with faster disaster response, while also promoting green economic growth at home.
The announcement, made by Foreign Secretary David Lammy on Tuesday, 8 July, coincides with high-level meetings between senior Cabinet ministers and financial leaders in the City of London. The discussions are focused on strengthening the UK financial sector’s role in channelling sustainable investment into emerging markets and developing economies.
£12 million to boost disaster preparedness
The new funding will provide pre-arranged finance and insurance for countries at high risk of climate-related disasters such as hurricanes and droughts. Triggered by early warning systems and forecasts, the mechanism enables rapid payouts and quicker recovery, reducing long-term economic damage.
This approach not only helps safeguard vulnerable communities globally but also supports the UK’s green economy by encouraging private sector involvement and innovation in sustainable finance.
Strategic economic opportunity for the UK
Foreign Secretary David Lammy emphasized that the climate crisis presents both a global threat and a significant economic opportunity for the UK:
“The climate and nature crisis is the greatest global challenge we face. But tackling it is also a huge opportunity—one that can drive economic growth, job creation, and security here in the UK.”
He pointed to the green economy, already valued in the trillions, as central to the government’s Plan for Change. The UK’s green sector grew three times faster than the wider economy last year and attracted £43 billion in private investment.
With the City of London ranked as the world’s top centre for sustainable finance, the UK is uniquely positioned to lead global efforts in green investment—particularly as emerging markets are expected to account for 65% of global growth by 2035.
Global climate finance and regulatory collaboration
This new package builds on recent UK-led initiatives to expand pre-arranged finance globally and encourage public market investment in developing nations. It follows the launch of an international coalition at the Financing for Development Conference in Sevilla last week, led by Minister for Development Baroness Chapman.
Additionally, the Foreign Secretary announced that the UK’s Financial Services Centre of Expertise will begin supporting ASEAN financial regulators. The initiative will leverage expertise from the UK’s Financial Conduct Authority to help align regulatory frameworks across Southeast Asia, making it easier for UK investors to access green growth opportunities in the region.
Driving sustainable finance forward
Today’s measures aim to unlock billions in climate finance and reinforce the UK’s leadership in sustainable development. With global climate investment reaching $2.1 trillion last year, the government sees a strategic role for London and UK financial institutions in accelerating green growth—both at home and abroad. Photo by Duncan R2, Wikimedia commons.