IISD: Why ECAs must shift from fossil fuel support to clean energy

(IISD, Winnipeg, 30 June 2022) If countries signing on to the COP26 Statement on International Public Support for the Clean Energy Transition shifted their almost US$28 billion/year from fossil fuels to jump-start the energy transition they would more than double their international clean energy finance. All international public finance institutions have yet to substantially scale up their clean energy support to catalyze a globally just energy transition and support energy security in a time of crisis. If the export credit agencies, development finance institutions and government departments of governments signing on to the COP26 Statement on International Public Support for the Clean Energy Transition were to fully redirect their USD 28 billion a year in overseas public finance for oil and gas, they would more than double their international clean energy finance, from USD 18 billion a year to USD 46 billion. As noted in our June 2022 ECA Watch What's New, between 2018 and 2020, G7 countries provided US$100bn towards oil, gas and coal projects through their export credit agencies (ECAs) or development finance institutions – over four times their contribution towards clean energy. As noted in our June 2022 ECA Watch What's New, between 2018 and 2020, G7 countries provided US$100bn towards oil, gas and coal projects through their export credit agencies (ECAs) or development finance institutions – over four times their contribution towards clean energy.