Corporate report

Independent Commission for Aid Impact's review of UK aid for international energy transitions: UK government response

Published 16 January 2026

We welcome this report and thank ICAI for their review of UK aid for international energy transitions. We welcome recognition of positive achievements including through the UK’s International Climate Finance (ICF) and the efficacy of our adaptive approach to energy transition in developing countries. ICAI’s recommendations are timely as the third commitment period of the ICF closes and planning for the next phase is underway. 

We agree that the energy transition towards clean, affordable and renewable energy is essential to support economic growth and poverty reduction while keeping global warming below dangerous levels. We accept 4 of the 6 recommendations and partially accept the remaining 2.

We recognise that this review takes ICAI’s work into new territory with a focus on non-ODA activities (some of the partnerships and alliances). We welcome the opportunity to engage with ICAI on its evaluative methodologies and how they might continue to adapt.

Our response to ICAI’s recommendations are as follows:

Recommendation 1

The UK should publish a comprehensive energy transition strategy with a clear definition and theory of change, which also reflects poverty reduction and inclusion goals.

Response: Partially accept

We welcome ICAI’s recognition of the UK’s leadership of the global energy transition, achieved through its political, financial and technical commitment. The UK remains committed to poverty reduction and inclusion goals, including gender equality. These goals are firmly integrated into UK programmes and projects, which ICAI acknowledges. We intend to publish details on our strategy for ICF in the coming months. Our approach to energy will be informed by the overarching strategic approach.

Recommendation 2

The UK should take a portfolio-level approach to identifying and allocating funding between different bilateral and multilateral channels, notably between the multilateral climate funds, based on comparative advantage and value for money.

Response: Accept

We agree that a portfolio-level approach is essential for coherence, impact, and value for money across ICF. The UK’s 2023 ICF Strategy commits to supporting developing countries through a balanced mix of bilateral and multilateral channels.

The UK plays a leading role in the Multilateral Development Banks (MDBs) and Multilateral Climate Funds, including the Climate Investment Funds (CIF) and the Green Climate Fund (GCF), delivering climate finance at scale, strengthening access for climate-vulnerable countries, and driving transformational change across the energy transition. Our bilateral programmes complement this by aligning with country-led priorities. We will update on the UK’s approach in the next ICF phase in the coming months.

Recommendation 3

The UK should establish clear, publicly accountable departmental roles with joint accountability to strengthen decision making and coordination on energy transition.

Response: Accept

We welcome ICAI’s acknowledgement of the “UK’s adaptive decision making”, which enabled the UK to efficiently and flexibly scale its support during ICF3.

We agree that the UK’s approach to decision making must continue to evolve to reflect the new domestic and international environment, and to support the new Ministerial ODA Delivery and Impact Board, achieving strategic coherence, effective coordination and governance. This will reflect clear departmental roles and accountability.

Recommendation 4

The UK should standardise and strengthen the implementation of monitoring and learning across its energy transition portfolio, particularly accountability for reporting and the use of data on transformational change, financial leverage, and the additionality of UK finance.

Response: Accept

We welcome ICAI’s recognition that the UK’s International Climate Finance (ICF) has a well-defined system for monitoring, evaluation and learning (MEL) at programme level, and that our MEL system is regarded as exceptional within the climate finance landscape. We are proud that ICAI highlighted the UK as one of the very few ICF providers aspiring to report results at an aggregate level. A robust MEL system is essential to ensure continuous learning from our programmes and to deliver maximum value for money.

We acknowledge that there is scope for improvement in the consistent use of evidence and data, particularly at portfolio level. Addressing this is a core objective of our new portfolio-level MEL programme over the next 5 years, commencing in January 2026.

Recommendation 5

The UK should clarify the role of its country partnerships and international alliances in supporting energy transition, introduce more realistic targets for the Just Energy Transition Partnership (JETPs), and create robust performance frameworks for alliances.

Response: Partially accept

Partnerships and alliances can create the political conditions for systemic change and support for aligned country-led action. The UK is an active participant in these but does not solely ‘own’ such initiatives. Such arrangements form and evolve through discussion and agreement within the international community. JETPs targets are owned by partner countries who have taken steps to incorporate them into national plans and commitments. We remain committed to supporting country partners while identifying broader lessons and learning.

Partnerships and alliances serve varied purposes. Most have no direct ODA spend, though same may indirectly link to the uptake and impact of other programmes. Where the UK allocates ODA to partnerships and alliances, robust frameworks are established at the outset and are used to monitor progress, as is the case with the South African Just Energy Transition Partnership (JETP). Where partnerships and alliances are linked with other programmes and finance sources these are each subject to their respective evaluation frameworks and deliver ancillary benefits through a partnership approach.

Recommendation 6

The UK should clearly articulate its objectives for mobilising additional finance, distinguishing between support for countries at different development stages and across the investment cycle.

Response: Accept

We welcome that ICAI identifies that “The UK has taken a robust system-wide approach to finance mobilisation”. We agree that the choice of financing instruments must be tailored to address investment needs in low and middle-income countries and that this should be reflected in our activity and strategy.

Support to low-income countries tends to be grant ODA and concessional finance, to promote energy access and low-carbon solutions for energy infrastructure build out. In parallel, we are developing solutions to address the perceived higher investment risk in such countries, through promoting reforms within the global financial system and multilateral funds to mobilise funds at institutional levels.