CSOs call on world leaders to end public finance for fossil fuels in 2021
Urgent action is needed to ensure 2021 marks the end of international public finance to fossil fuels. This would free up significant support for clean energy and a just and equitable transition worldwide.
In order to limit global warming to 1.5C, governments and companies must stop investing in new coal mines and oil and gas fields from 2021 onwards. with existing fossil fuel production wound down at the same time. However, public funds are being used to prop up fossil fuels, with G20 members providing at least three times as much public finance for fossil fuels (US$77 billion) as for clean energy (US$28 billion) every year.
Ahead of COP26, more than 200 civil society organisations are calling on governments and public finance institutions to:
- Immediately rule out any new international public finance to coal, oil, and gas projects across the entire value chain (extraction, transport, distribution, and power generation), including through export credit agencies.
- Avoid loopholes that allow indirect public finance for fossil fuels to continue through associated infrastructure, technical assistance, or financial intermediaries.
- Ramp up bilateral and multilateral climate finance to deploy renewable energy at scale, grant universal and affordable access to energy, and enable an equitable and just transition for affected communities and workers in the global south.
- Prioritise support to low-income countries that face the largest energy access and transition challenges, including by acting on debt relief and increasing grant-based finance.
- Ensure a whole-of-government approach to ending public finance for fossil fuels as part of efforts to align public finance with the Paris goals and improve transparency and reporting standards.