Britain’s foreign secretary, Ed Miliband, is set to indicate that he will put the climate crisis and overseas development at the heart of UK international relations by taking up the country’s seat on the board at the World Bank. The move means Miliband will play an active role in shaping the changes to the global lender that developing countries have called for, while also ensuring the climate remains a core focus for overseas aid.
Miliband, who was energy and net zero secretary under Keir Starmer, will say:
“International development is not an add-on to British foreign policy – it is central to it. By taking on the role of UK governor to the World Bank, I want to send an unambiguous signal that this government is serious about its global leadership on development and climate.”
His announcement comes as fires continue to devastate Greece, and after Scotland called for extra support to tackle a blaze that engulfed the Cairngorms. Conditions approaching drought have prompted hosepipe bans, and the heatwave that swept across Europe in June is estimated to have cost the continent’s grain farmers €2bn (£1.7bn) in lost revenue.
By taking up the World Bank seat personally, Miliband is sending a clear signal that while other politicians even now argue against net zero policies, the Foreign Office will continue to drive climate action.
The move comes at a crucial time for the international lender, which has come under pressure to reverse a previous focus on climate finance. Last month, the publicly funded bank was urged for 45% of its finance to be directed to climate-related ends.
Experts welcomed Miliband’s decision as a boost to climate action. Lord Stern, a professor of economics at the London School of Economics, said the foreign secretary’s take-up of the UK governor’s seat would
“send a powerful and important signal”to the world.
“As a former chief economist and senior vice-president of the World Bank, I know that the UK can punch above its weight,”he said.
“But only if the leadership is there from the top. In recent years, that has slipped. Ed Miliband will be restoring development and climate to the priority in our international relationships that they must have, in a world facing climate and biodiversity crises, and with real and growing threats to the wellbeing of the world’s poorest.”
Other countries have been wary of challenging the US on its anti-climate stance, for fear of reprisals and after widespread cuts to developed countries’ overseas aid. The UK is one of six countries with its own seat at the World Bank board.
Mohamed Adow, a director of Power Shift Africa, a thinktank, said Miliband could champion changes at the lender that would help the poor.
“The real test is whether the UK uses its influence to push the World Bank to deliver far more finance for climate action and adaptation, to get money to countries faster, and ensure the poorest nations are not forced deeper into debt to respond to a crisis they did least to cause,”Adow said.
“If this appointment marks the start of renewed British leadership on global climate and development, it will be warmly welcomed across Africa.”
Miliband will face a shrinking aid budget and tough decisions over allocation. Starmer is due to reduce aid to 0.3% of gross national income, a sharp reduction from 0.5% under the Conservatives and the 0.7% reached under the last Labour government. Overseas aid has also fallen from £11.6bn a year in 2021 to £2bn in 2026.
Britain’s prime minister, Andy Burnham, was criticised for saying his planned £2 cap on bus fares in England would be funded mainly by changing international climate finance grants into repayable loans. The loans will go to the Amazon Fund, an investment fund set up by the Brazilian government.
Jonathan Hall, the managing director of the charity Conservation International UK, said that to restore its credibility, the government should rescind the cuts Starmer made despite that ecosystem collapse overseas threatened national security.
“Miliband now needs to reintroduce a clear target for a third of the UK’s £6bn climate aid budget to”,said Hall,
“a goal which was lost under his predecessor,”
The UK will take over the leadership of the G20 group in November.
Rachel Kyte, the UK’s climate envoy and a former senior World Bank official, said:
“We will be in the midst of an energy and food security crisis from the blockage of the strait of Hormuz. Compounding that is a severe El Niño. We will need every ounce of capacity in the international financial architecture to help some parts of the world through the severity of these impacts. Ed has seen what it takes to mobilise the world to action before, pulling every lever we have available to us. If needed, we will do it again, for our own and everyone else’s security.”
What does the move mean for UK foreign policy?
The decision signals that development and climate will be treated as central parts of UK foreign policy rather than secondary concerns. By taking the World Bank seat personally, Miliband will be able to influence the lender’s direction more directly and represent the UK at a time when pressure is building for richer countries to support climate finance.
Why is the World Bank role significant?
The position is usually delegated to a junior minister, but Miliband’s decision to take it himself gives the UK’s governor’s seat greater political weight. It also places him in a position to help shape changes to the lender that developing countries want, particularly around climate finance and aid priorities.
How are climate and aid budgets being affected?
Miliband will have to operate within a shrinking aid budget and difficult allocation choices. Starmer is due to reduce aid to 0.3% of gross national income, compared with 0.5% under the Conservatives and 0.7% under the last Labour government, while overseas aid has fallen from £11.6bn a year in 2021 to £2bn in 2026.
Britain’s prime minister, Andy Burnham, was criticised after saying his planned £2 cap on bus fares in England would be funded mainly by changing international climate finance grants into repayable loans. Those loans will go to the Amazon Fund, an investment fund set up by the Brazilian government.
What are experts saying?
Lord Stern said the move would send a strong signal internationally and restore climate and development to their proper place in Britain’s relationships with other countries. Mohamed Adow said the real test would be whether the UK uses its influence to speed up finance for climate action and adaptation, prevent poorer nations being pushed deeper into debt, and support countries that did least to cause the crisis.
Jonathan Hall said the government should reverse the cuts Starmer made and reintroduce a clear target for a third of the UK’s £6bn climate aid budget to, a goal that was lost under Miliband’s predecessor. Rachel Kyte warned that global energy and food security risks, including the blockage of the strait of Hormuz and a severe El Niño, mean the international financial system will need maximum capacity to respond.
Why does the timing matter?
The announcement comes as fires continue to burn in Greece, Scotland requests support for the Cairngorms blaze, drought conditions trigger hosepipe bans, and European farmers face losses from the June heatwave. The UK will also take over leadership of the G20 in November, increasing the significance of the World Bank role and the wider climate agenda.
Other countries have been reluctant to challenge the US on its anti-climate stance, partly because of fear of reprisals and widespread cuts to developed countries’ overseas aid. The UK is one of six countries with its own seat on the World Bank board, giving Miliband a platform to push for the changes climate advocates want.
Key Facts
- Ed Miliband will take up the UK’s seat on the World Bank board personally.
- He says international development is central to British foreign policy.
- Starmer is due to reduce aid to 0.3% of gross national income.
- Overseas aid has fallen from £11.6bn in 2021 to £2bn in 2026.
- The UK will take over leadership of the G20 in November.
