LONDON, Sept 29 (Reuters) – Public funding for international fossil fuel deals fell by up to 78% last year across a coalition of 35 countries, though members of the group, including Germany and the United States, approved new projects, research by a group of NGOs showed on Tuesday.
Countries agreed atUN climate talks in 2021 to cease the practice by the end of 2022 and prioritise investment in clean energy instead. The agreement, known as the Clean Energy Transition Partnership, covers export finance, development finance and official development assistance.
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Tuesday’s report from think tank the International Institute for Sustainable Development, and NGOs Oil Change International and Friends of the Earth U.S. said trade wars, rising geopolitical tensions and the United States’ decision to withdraw from the coalition and prioritise oil, fossil gas and coal production put future efforts at risk.
“Multilateral cooperation on climate and energy is more fragile than ever,” the report says. “Furthermore, the significant reduction in support for international fossil fuels has not led to a corresponding increase in support for clean energy technologies.”
In 2024, overseas fossil fuel financing had decreased by up to 78%, or between $11.3 billion and $16.3 billion, compared with 2019-2021 levels, before the agreement was signed.
Germany, Switzerland and the United States were among the members to jointly approve $10.9 billion in new fossil fuel financing from 2023 to 2024, the report added.
Reporting by Virginia Furness; editing by Barbara Lewis
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Virginia Furness covers sustainable finance in London. She writes about how the financial sector is shifting to meet climate and development goals and the impact these changes are having on the flow of money, business, people and planet. She also covers development finance, carbon markets, natural capital and other ESG related issues.