At least 19 countries announced on Thursday that they pledged to end overseas financing of fossil fuel projects without carbon capture techniques by the end of 2022, including large investors like the United States. and Canada.
“Investing in fossil fuel projects left as they are carries increasing social and economic risks … and has negative impacts on state income, local employment, taxpayers and public health”, write the signatories in a joint statement released during the COP26 international climate conference in Glasgow.
The G20 nations recently agreed to stop supporting coal-fired power plant projects abroad. The plan announced Thursday, at the initiative of London, includes gas and oil for the first time, and promises to redirect this money towards renewable energies.
“We need to put public funding on the right side of history. Putting an end to international funding for all these fossil energy projects is essential if we are to be able to maintain the 1.5 ° C target ”, of warming from the Paris Agreement, commented the British Secretary of State for Business , Greg Hands.
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According to the International Energy Agency (IEA), in order to be able to maintain the +1.5 ° C target, all funding for new fossil fuel projects should immediately be stopped.
However, according to the NGO Oil Change International, between 2018 and 2020, the G20 countries alone financed such projects to the tune of 188 billion dollars, mainly via multilateral development banks.
“This announcement is a step in the right direction,” commented Tasneem Essop, director of Climate Action Network International. “But it must be extended to more governments and public financial institutions, including multilateral development banks.”
Jennifer Layke, of the World Resources Institute also welcomed the initiative, recalling that “the IPCC is perfectly clear on the fact that to avoid a climate disaster we must put an end to our addiction to fossil fuels, and the elimination of funding is an essential step forward ”.
“This is a welcome step, but countries, especially the United States, must stand firm on these commitments and turn off the taps to fossil fuel companies,” commented Kate DeAngelis, Friends of the Earth USA.