“This has the whiff of cash for favours about it. Labour claims to be committed to fighting the climate crisis, yet it’s accepting millions from a fund with deep ties to fossil fuels.”
Labour’s newly appointed climate envoy, Rachel Kyte, is facing scrutiny after it emerged that she holds a significant position on the climate advisory board of a controversial hedge fund-linked foundation.
The Quadrature Climate Foundation, with which Kyte is affiliated, is tied to Quadrature Capital—a Cayman Islands-based hedge fund known for investing in fossil fuel companies.
The timing and nature of this connection have raised concerns, especially in light of a substantial donation made to Labour just before the General Election.
Rachel Kyte, a climate expert, was appointed by Labour as the party’s climate envoy to fill a role axed by former Prime Minister Rishi Sunak. However, her position as co-chair of the Quadrature Climate Foundation’s climate advisory board has drawn attention due to the fund’s questionable environmental credentials. Quadrature Capital, registered in the tax haven of the Cayman Islands, has significant holdings in fossil fuel firms, including major players like ConocoPhillips and Cheniere Energy.
This revelation is particularly concerning given Labour’s strong rhetoric against fossil fuel investments and promises of commitment to green policies. Critics argue that appointing someone so closely linked to a fund investing in the very industries Labour claims to oppose is at odds with the party’s stated values.
Critics argue that appointing someone so closely linked to a fund investing in the very industries Labour claims to oppose is at odds with the party’s stated values.
The situation is further complicated by the timing of a hefty £4 million donation from Quadrature Capital to Labour, which came on 28 May 2024, at the very start of the election campaign. The donation, one of the largest ever received by the party, only came to light recently, sparking accusations of a potential conflict of interest and questions over whether this financial backing could influence Labour’s climate policies.
While Quadrature Capital has stated that the donation was intended to support a “social agenda,” sceptics are questioning whether the hedge fund’s significant investment in fossil fuels aligns with Labour’s environmental pledges.
However, according to OpenDemocracy, Daniel Luhde-Thompson, a strategic adviser at Quadrature, has also contributed over £500,000 to the Labour party this year, as reported by the Electoral Commission.
According to Open Democracy, Daniel Luhde-Thompson, a strategic adviser at Quadrature, has also contributed over £500,000 to the Labour party this year…
The news has prompted a backlash from environmental groups and political opponents, who are accusing Labour of hypocrisy. Just last year, the party was vocal in condemning the Conservative government for its perceived leniency towards the fossil fuel industry. Now, with this substantial donations from a fund investing in similar sectors, Labour finds itself in a difficult position.
A former Conservative MP told the Conservative Post: “This has the whiff of cash for favours about it. Labour claims to be committed to fighting the climate crisis, yet it’s accepting millions from a fund with deep ties to fossil fuels.”
Defending Kyte’s appointment, a Labour spokesperson insisted that her role on the Quadrature Climate Foundation board does not influence her position as the party’s climate envoy. They emphasised that Kyte is a globally recognised climate expert whose experience will be invaluable in shaping Labour’s green agenda.
“Rachel Kyte’s track record speaks for itself. She has been a leading voice in the fight against climate change and brings unparalleled expertise to this role,” the spokesperson said. “Labour is committed to a bold and transformative climate agenda, and we will not be swayed by external interests.”
Despite Labour’s reassurances, questions remain over the transparency of the party’s financial dealings and the potential influence of wealthy donors. The fact that the £4 million donation was only revealed after the election has further fuelled suspicions.
questions remain over the transparency of the party’s financial dealings and the potential influence of wealthy donors.
Political analysts suggest that Labour needs to be more transparent about its financial backers to maintain credibility. As the controversy unfolds, all eyes will be on how Labour navigates its climate policy amid these conflicting interests. With Rachel Kyte at the helm, the party must demonstrate that it can stay true to its environmental commitments without being compromised by the influence of major donors.
Photo: Labour’s newly appointed climate envoy, Rachel Kyte. CC BY-SA 4.0 licensed under the Creative Commons Attribution-Share Alike 4.0 International license.
