G20 ECAs and public finance institutions are still bankrolling fossil fuels

(Oil Change Int'l/FOEUSA, Washington, October 2021) This 36 page reprort documents how G20 countries and the multilateral development banks (MDBs) they govern in 2018-2020 provided at least US$63 billion per year in international public finance for oil, gas, and coal projects. This fossil fuel finance was 2.5 times more than their support for renewable energy, which averaged only US$26 billion per year. This continued support for fossil fuels from trade and development finance institutions counters G20 countries’ commitments under the Paris Agreement to align financial flows with a safe climate future as well as their 2009 commitment to phase out fossil fuel subsidies. It also undermines the effectiveness of climate finance, which is still not delivered at either the scale promised (US$100 billion per year from 2020) or needed. ECAs continue to be the largest supporter of international fossil fuel projects, providing billions annually in 2018-2020: ECAs provided an average of US$40.1 billion annually to fossil fuels — 82% of ECA support. This 36 page report shows that the science is clear — governments must rapidly wind down fossil fuel production and use to avoid the worst climate impacts, noting that the recent Intergovernmental Panel on Climate Change (IPCC) report is a “code red for humanity.”