Europe and U.S. push for oil-funding ECA curbs deal to outlast Trump

(Philadelphia Tribune, 22 November 2024) The EU, U.S. and other countries are hammering out a plan to throttle tens of billions of dollars of financial support for foreign oil and gas projects, weeks before President-elect Donald Trump moves into the White House. Negotiators are working toward landing a deal at the Organization for Economic Co-operation and Development gathering in Paris by Thursday, according to people familiar with the matter. An agreement would be a culmination of more than a year of effort to expand existing rules that prohibit member nations’ export-credit agencies from financing unabated coal projects. It’s an about-turn for the U.S., which had effectively stalled work on the broader fossil fuel restrictions for months amid concerns from the country’s Export-Import Bank. But with Trump taking office in two months, it’s a last-ditch bid to lock in a climate policy that environmental advocates say be difficult for the new administration to reverse while freeing up multibillion-dollar funds for global clean energy projects. The group’s members have a longstanding gentlemen’s agreement that effectively allows them to use export-credit agencies to give preference to domestic companies in international deals without running afoul of WTO rules. Member countries have an incentive to abide by the policies since they help ensure a level playing field. Restricting export-credit agency support for fossil fuels is viewed as crucial to meet global climate goals, a year after nearly 200 countries agreed to transition away from polluting energy sources. “There aren’t many policy tools that Trump can’t undo, and this is one of the few,” said Laurie van der Burg, Public Finance lead at Oil Change International. Oxfam America notes that: “A ‘Trump-proof’ climate deal of this magnitude is mission critical for the Biden administration — not only to secure its legacy on climate progress, but also help safeguard every community, both in the U.S. and globally, from damaging storms, heat waves, and rising seas. The climate crisis won’t stop for a climate denier in the White House, and this is the last chance for the current administration to stop billions in global handouts to fossil fuel corporations." Nearly 300 green groups have urged Biden to block LNG expansion ahead of Trump.