United Kingdom

The Foreign Commonwealth and Development Office (FCDO) is the lead agency for official development assistance in the United Kingdom (UK). Established in September 2020, the FCDO resulted from the merger of the Department of International Development and the Foreign and Commonwealth Office.

The UK provides development assistance in the form of grants, equity, and loans. In 2021, the UK government published its “Indo-Pacific Tilt,” underlining the UK’s strategic importance in the Asia and Pacific region.

The Department for Energy Security and Net Zero (formed from the split of the Department for Business, Energy & Industrial Strategy in May 2023) also handles some of the UK’s development assistance in energy and climate change.

Highlights of ADB–UK Engagement in 2023:

Sovereign Cofinancing. In 2023, the UK committed $360,000 to technical assistance to strengthen innovation in ADB’s transport assistance and meet the emerging requests from its developing member countries.

Nonsovereign Cofinancing. The Trade and Supply Chain Finance Program (TSCFP) supported over 28,700 transactions valued at $18.6 billion with banks domiciled in the UK from inception to December 2023. During the same period, the TSCFP supported over 510 UK exports and/or imports valued at $360 million. In 2023 alone, the TSCFP supported over 17,800 transactions valued at $1.1 billion with banks domiciled in the UK and supported 40 UK exports and/or imports valued at $24.7 million. Exports and/or imports were mainly to or from Bangladesh, Viet Nam, and Sri Lanka. Underlying goods involved mostly raw and non-energy commodities, food and agriculture-related goods, as well as textiles and apparel.

The UK also supported ADB’s TSCFP with a contribution to the Urban Climate Change Resilience Trust Fund that provided $1.5 million to finance TSCFP’s safeguards-related initiatives.

Trust Funds. In 2023, the UK committed $269.5 million to four trust funds:

• £107 million ($129.7 million) for the UK–ASEAN Catalytic Green Finance Facility (ACGF) Trust Fund. The fund was established under the ACGF to support developing member countries in Southeast Asia in transitioning to low-carbon and climate-resilient development pathways. It contributes to the objectives of the ACGF, which are to accelerate the development of green infrastructure by better utilizing public funds to create bankable projects and catalyze private capital, technologies, and management efficiencies.
• £68.5 million ($82.2 million) for the Urban Resilience Trust Fund. Its interventions will support integrated resilience planning, enhanced and effective investments in resilient infrastructure, and greater opportunities to exchange knowledge on mitigating and addressing climate and disaster risks. The focus will be on adaptation and resilience, nature-positive solutions, and mobilization of climate finance.
• £45 million ($54 million) for the Community Resilience Partnership Program Trust Fund. The fund aims to provide technical assistance and grant resources to scale up climate adaptation solutions at the community level.
• £3 million ($3.8 million) for the Ocean Resilience and Coastal Adaptation Trust Fund. It was established to increase the quantity and quality of investments in ocean health (including resilience and the blue economy) and coastal adaptation.

Special Funds. The United Kingdom (UK) is a founding member of ADB and has, since 1966, committed $1.9 billion to ADB special funds. Of this commitment, $1.8 billion has gone to the Asian Development Fund (ADF). The ADF provides grants to ADB’s low-income, developing member countries to help reduce poverty and improve quality of life.

Knowledge. In November 2023, the ACGF organized a study tour to the UK to support green municipal bond issuances in the ASEAN region. The tour focused on UK experiences with sovereign and municipal bonds for green financing. Twelve senior government officials from Cambodia, Indonesia, Thailand, the Philippines, and Viet Nam participated in an investor roundtable and knowledge-sharing sessions with key stakeholders from the City of London’s bond ecosystem. The delegation participated in the Climate Bonds Initiative’s (CBI) CONNECT'23 Global Conference, visited projects funded by green bonds, and attended investor training on transition financing through capital markets. The program was organized in partnership with the Foreign Commonwealth and Development Office and CBI.

UK Prime Minister Rt. Hon Rishi Sunak opened the 2023 Global Food Security Summit in London in November 2023. ADB’s Agriculture, Food, Nature, and Rural Development sector group discussed the progress of ADB’s $14 billion food security program (2022–2025). It highlighted three features of ADB’s efforts to build a climate-resilient and sustainable food system: introduce an incentive mechanism, adopt a holistic approach, and catalyze private sector investment.

Also, in November 2023, ADB hosted the financing donors for the annual consultation meetings of the Clean Energy, Urban, and Water Financing Partnership Facilities (FPFs) in India. ADB thanked the donors, including the UK, while highlighting the FPFs’ role in developing innovative solutions. Donors expressed their support for the FPFs, underscoring the importance of scaling up knowledge and innovation, ensuring greater visibility for donor contributions, and diversifying the funding base for the FPFs.

At a side event during the UNFCCC Climate Change Conference (COP28) in December 2023, the Philippines announced the completion of the country’s National Adaptation Plan (NAP) and the Implementation Plan for the Philippines’ Nationally Determined Contribution (NDC IP). In partnership with ADB and the UK, this ministerial-level event discussed critical actions and partnerships needed to deliver transformative action outlined in the Philippines’ ambitions and commitments under the country’s NAP and the NDC IP.