What’s next for international climate spending in the UK under the new fiscal rules?

This short report recommends adjusting the treatment of guarantees as a fiscally efficient way of supporting the UK to expand its deployment of development guarantee instruments, with the aim of better managing potential exposure in the event of a default. This will help to both improve management of the in-year official development assistance (ODA) budget and encourage the Foreign, Commonwealth and Development Office (FCDO) to expand its use of guarantees for climate investment.