The announcement comes ahead of next week's meeting in Seoul of the International Development Association (IDA), the World Bank's arm focused on assisting low-income nations.

Development Minister Anneliese Dodds said, "Britain is back with a voice on the world stage. When we promised a new approach to development, built on partnerships and respect, we meant it. Leaders of low-income countries called for stronger IDA contributions, and we listened."

This contribution is expected to play a critical role in advancing the commitments made at the recent Cop29 UN climate summit, where multilateral development banks (MDBs) were tasked with providing substantial climate finance through grants and loans.

Experts welcomed the funding increase, despite recognizing fiscal constraints. Avinash Persaud, climate advisor to the Inter-American Development Bank, praised the commitment, saying, "While I wish it were more, this is a strong endorsement of the multilateral system." Similarly, Mafalda Duarte, executive director of the Green Climate Fund, called the move "positive."

Adrian Lovett, UK executive director of the campaign group ONE, highlighted the multiplier effect of such investments, urging other countries like France, Canada, and Sweden to follow suit and complete the funding package.

Fallout from Cop29

The funding announcement comes amid criticism and controversy surrounding the Cop29 summit, which concluded with accusations of mismanagement and insufficient commitments from wealthy nations. Developed countries pledged only $300 billion (£236 billion) annually—far short of the $1.3 trillion promised by 2035. Much of the remaining finance is expected to come from the private sector and innovative funding mechanisms.

Mukhtar Babayev, Azerbaijan's environment minister and Cop29 president, faced backlash for blaming "western nations" for being "immovable" on financial contributions. His comments drew sharp criticism from Christiana Figueres, former executive secretary of the UN Framework Convention on Climate Change (UNFCCC), who called his remarks a betrayal of the role of a Cop president.

Figueres emphasized the need for better preparation leading up to the summit, stating, "A complex agreement cannot be finalized in the last moment; it must be developed over the entire year, not just during the two weeks of the Cop."

Former UNFCCC secretary Yvo de Boer also criticized the presidency, arguing that it should represent the interests of all parties and avoid appearing biased toward national interests.

Despite the contentious outcomes of Cop29, the UK's funding boost to the World Bank is seen as a critical step in addressing the growing climate finance gap, reinforcing the need for global collaboration in tackling the climate crisis.