New analysis by Oil Change International shows that several major countries continue to pump $4.4 billion in public finance into international fossil fuel projects despite committing to end this support by the end of 2022.
Six countries including the United States, Germany, Italy and Japan have at least 26 fossil fuel projects awaiting approvals, with Germany having the biggest number of projects pending. Without this funding, these projects, which are incompatible with limiting global warming to 1.5°C, are unlikely to proceed.
The new Fossil Finance Violations project tracker shows that the majority of the 16 large international public finance providers that signed the Glasgow Statement have kept their promise and not financed fossil fuels since the deadline elapsed (Belgium, Canada, Denmark, France, New Zealand, Portugal, Sweden, Spain and the United Kingdom). However, several major countries are continuing to finance fossil fuel projects in breach of the commitment.
The main countries continuing to finance fossil fuel projects despite committing to stop doing so include:
- The U.S. has approved the most fossil fuel finance in 2023 so far, providing a total of $1.5 billion for 4 projects. While the U.S. has reportedly adopted a policy to follow through on its commitments to end international public finance for fossil fuels, it is refusing to publish it. The Biden Administration has been heavily criticized for continuing to greenlight international fossil fuel projects, despite a 2021 Executive Order and its support for the Glasgow Statement.
- Germany, which has the most fossil fuel projects awaiting approval of public finance support with at least 9 under consideration. The country has approved $472 million in finance for 3 projects so far in 2023, and has a pre-request for liquefied natural gas (LNG) deliveries from the U.S. worth $3 billion. Germany recently published a new draft policy for consultation to restrict fossil financing that is vaguely-worded and falls short of its Glasgow promise.
- Italy, which has approved almost $1.2 billion in finance for 3 projects so far this year, making it the second-largest Glasgow signatory for approving fossil finance. Its fossil finance policy released early this year is considered by campaigners to be ‘worst-in-class’.
- Japan is one of the world’s largest providers of public finance for fossil fuels. As part of the G7, Japan signed onto a commitment to end international public finance for fossil fuels that is near identical to the Glasgow commitment in June 2022. However, Japan has approved at least $449 million in finance for 3 projects so far in 2023.