According to the UK Government, the funding for the £2 cap comes from a "reprioritisation" of the Department for Energy Security and Net Zero budget, switching money that had been set aside for international climate finance projects from grants into loans that must be repaid.
Rather than helping countries build a safer future, this risks saddling them with more debt and leaving less money to spend on everything from hospitals to schools and protection from climate change.
The announcement follows Oxfam's latest analysis which shows that around two-thirds of the climate finance provided by rich countries comprise repayable loans, increasing debt burdens for countries dealing with a crisis they did little to cause.
Joanna Trevor, Climate and Water Expert at Oxfam GB, said:
“We welcome the Government’s decision to introduce a national bus fare cap and make public transport more affordable. This will help reduce inequality by lowering living costs for people on low incomes while incentivising emission reduction.
“But there is nothing fair about asking countries that did the least to cause the climate crisis to borrow more money to deal with it. This is a morally unjust and false decision. It is like robbing someone and expecting them to pay you for the privilege. The people least responsible for the climate crisis should not be left paying the bill.
“Instead, the Government should tax the biggest and wealthiest polluters and ensure they pay their fair share. This is the fair and responsible way to fund affordable transport and international climate action.”
