Published by Oil Change International.
This new Oil Change International report shows that Organisation for Economic Co-operation and Development (OECD) countries supported fossil fuel exports by an average of USD 41 billion from 2018 to 2020, almost five times more than clean energy exports. This directly contradicts internationally agreed climate goals, including the Paris Agreement objective to align financial flows with the low-carbon energy transition.
A majority of international public finance for fossil fuels is provided by OECD governed Export Credit Agencies (ECAs), with 71 percent of export financing for energy going to oil and gas.
OECD ECAs play a particularly influential role in getting large fossil infrastructure projects built. They invested in 56 percent of new hazardous liquified gas (LNG) export terminal capacity built in the last decade (providing at least USD 81 billion), helping drive the global fossil gas boom by getting these large keystone projects built. Overall, about 42 percent of all fossil fuel finance from ECAs under the OECD supported midstream infrastructure activities, such as pipelines, LNG ports, and shipping.
This new report recommends that OECD countries present an ambitious proposal to prohibit financing all oil and fossil gas projects in order to align with a 1.5ºC warming limit.
Authors of the report recommend that:
- Australia, Norway, Turkey, Korea, and Japan, urgently sign onto the Clean Energy Transition Partnership (CETP);
- OECD members that have already signed onto the CEPT, including the United Kingdom and Canada, fulfill their commitment to “driv[e] multilateral negotiations in international bodies, in particular in the OECD” to align with the Paris Agreement goals and present a proposal for an OECD oil and gas export finance prohibition;
- OECD members close the existing coal loopholes, to extend the coal-fired power prohibition to cover coal mining, transport, and associated infrastructure;
- OECD members ensure that under the Climate Change Sector Understanding (CCSU) no favorable investment conditions are offered to any project or technology derived from fossil gas, including but not limited to blue, gray, and black hydrogen and ammonia, or projects that extend the lifetime of fossil fuel assets.