G20's fossil fuel funding contradicts climate pledges

Despite commitments to combat climate change, G20 nations have significantly funded fossil fuel projects in less affluent countries.

Fiona Harvey reports for The Guardian.


In short:

  • G20 countries allocated $142 billion to fossil fuel developments abroad from 2020 to 2022, favoring gas over coal and oil.
  • This financial backing occurred despite the G7's 2022 vow to cease such funding, highlighting a gap between pledges and actions.
  • Recent investments, particularly by Japan, indicate ongoing support for fossil fuels, exploiting policy loopholes.

Key quote:

"We must continue to hold wealthy countries accountable for their role in funding the climate crisis, and demand they move first and fastest on a fossil fuel phase-out."

— Claire O’Manique, public finance analyst at OCI

Why this matters:

Despite international agreements aiming to reduce carbon emissions and transition towards cleaner energy sources, funding for coal, oil, and natural gas projects by G20 countries in lower-income regions persists. This financial support is often justified as necessary for economic growth and energy security in recipient countries. However, critics argue that it locks these nations into a future dependent on fossil fuels, which are detrimental to the environment and global health.

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