A new report shows that between 2019 and 2021, the G20 and global development banks spent nearly twice as much as they did on financing international fossil fuel projects on renewables.
Between 2019 and 2021, global development banks and G20 countries, including France, Germany and Italy, will provide at least $55 billion (HUF (HUF) 22.9 thousand) annually in international public financing for oil, gas and coal.
That astronomical amount represents a 35 percent drop from 2016 to 2019, but it nonetheless threatens key climate pledges.
“This fossil fuel financing was twice their clean energy subsidy, which averaged only $29 billion (€29.3 billion) per year. This support is in direct conflict with the G20 countries’ commitment to adjust financial flows to a 1.5°C level under the Paris Agreement,” the report said. We cannot afford the new fossil fuels.”
How does international public finance work?
Public finance refers to the money that governments and international organizations invest in foreign business. For example, the World Bank gets its money from money borrowed from member countries and from international capital markets. She says the money is used to fund various infrastructure projects around the world euronews.
According to the International Energy Agency, to keep global warming below 1.5°C above pre-industrial levels, all new fossil fuel projects must be stopped by the end of this year.
Last few years At COP26 in Glasgow 39 countries and institutions have signed a joint pledge to end international direct public financing of fossil fuels by the end of this year. However, money continues to flow into offshore oil and gas projects.
“Currently, G20 countries and multilateral development banks mostly use international public funds to support fossil fuel companies and prolong the fossil fuel era,” the report warns.
What European countries finance international fossil fuels?
The report analyzes international fiscal data for Germany, Italy, France and the United Kingdom, as these four European countries are members of the G20. They all signed the Glasgow Declaration, in which they committed to ending international direct financing of fossil fuels.
1. Germany
Between 2019 and 2021, Germany provided $2.8 billion (1,158 billion HUF) in public financing for fossil fuel projects. At the same time, Germany provided $2.2 billion (910 billion HUF) to clean energy through international public financing institutions – the third largest amount among the G-20 countries.
2. Italy
In 2019-2021, Italy provided $2.8 billion (1,158 billion forints) in public financing for projects related to fossil fuels. In the same period, only $112 million (46.3 billion forints) was saved for clean energy.
3. France
France has spent 260 million euros (106 billion HUF) to finance fossil fuels. However, the country is completely excluding coal. Through international public finance institutions, Paris has also secured $2.8 billion (1,158 billion forints) for clean energy – the highest amount among the G-20.
4. United Kingdom
Between 2019 and 2021, the UK spent $258 million (HUF 107 billion) annually on international fossil fuel financing. The report also cited institutions such as the European Investment Bank and the European Bank for Reconstruction and Development, which have invested $670 million (277 billion forints) and 640 million dollars (265 billion forints), respectively, in international fossil fuel financing.
Only a radical change can save us from climate catastrophe
The report urges G20 countries and international banks to shift international support entirely from fossil energy sources to clean energy. If they did, their current annual average allocated to clean energy would triple to $85 billion (Fort35 billion).
According to a recent report by the United Nations Environment Agency, current commitments on climate change “leave no credible path” for keeping warming below 1.5°C.
We’ve had the opportunity to make incremental changes, but that time is up. Only a radical transformation of our economies and societies can save us from accelerating climate catastrophe
– said Inger Andersen, Executive Director of the United Nations Environment Programme.
(Cover image: The Fairbridge coal-fired power plant on November 26, 2013. Photo: Chris Ratcliffe/Bloomberg/Getty Images)
