‘Untapped Potential’ of National Development Banks can unlock tens of billions for energy transition

First-ever report on G20 national development banks’ (NDB) energy finance shows they already provided $36 billion a year for renewables over the last decade (2016-2024) and could add at least $28 billion more by shifting away from fossil fuels.

9 July, 2026–  New research by Oil Change International shows how national development banks (publicly-owned domestic financial institutions) could unlock tens of billions of dollars globally for the renewable energy transition. These publicly owned banks already invest billions in clean energy and could do far more if given the right mandates by governments. 

The report comes as governments look for ways to speed up the shift away from fossil fuels and protect their economies from volatile energy prices. But outdated global tax, debt, and trade rules leave many governments—particularly in the Global South—with limited resources to invest in the transition and build greater energy sovereignty. 

This first-of-its-kind report shows how NDBs can play a much bigger role in funding a just energy transition, even within today’s financial constraints. It analyses how G20 NDBs have financed renewable energy and fossil fuels in the past and identifies how governments could shift billions more towards renewable energy. It also highlights banks that are already showing this is possible.

Much of the debate around financing the energy transition has focused on multilateral development banks (MDBs) and using public money to leverage private investment. Oil Change International’s ‘Private Fantasies, Public Realities’ report, released last year, reveals how this private-sector-first approach fails to deliver the necessary scale and quality of funding. NDBs are better positioned than their international peers to deliver a just transition on countries’ own terms. They have a stronger track record of ensuring reinvestment of money domestically and creating local jobs. 

If G20 NDBs redirected all of their fossil fuel finance to renewable energy, they could provide an additional $28 billion every year for a just energy transition. In recognition of their potentially transformative role, there has been growing interest in NDBs from governments. This includes a commitment from Global North governments last year at the once-a-decade UN Financing for Development Conference (FfD4) to support Global South NDBs to pursue locally-led green plans, as one part of their wider responsibility to pay their fair share of climate finance and cancel unfair debts.

The report profiles a number of NDBs:

• In Germany and Brazil, long-established NDBs are using innovative public financing mechanisms to direct billions to renewable energy, but could do even more. 
• In the UK, the relatively new National Wealth Fund could be supercharged using public bonds to fund public ownership of infrastructure and build new green industries.
• In Mexico, Claudia Sheinbaum’s government is using its various NDBs to fund and coordinate a renewable energy revolution, with plans to reach universal energy access in Mexico, including by providing free solar panels to low-income populations vulnerable to heat stress.
• In Costa Rica, Banco Popular stands out for its democratic governance model, steered by the public and national stakeholders such as unions.
• In Korea and Canada powerful NDBs help shape and steer economies – but are overwhelmingly funding fossil fuels, and must embrace renewable energy instead.

Adam McGibbon, Campaign Strategist at Oil Change International, said:

“National development banks are an underused tool to create a better world. 

These public banks can finance renewable energy jobs, provide universal energy access, repair the fossil fuel industry’s harm to people and ecosystems, and strengthen public services. Unlike private investors focused on short-term returns, they can invest for the public good.. Governments need to wield national development banks to reduce the fossil fuel dependency that is driving skyrocketing prices, trapping countries in debt crisis, and giving the U.S. continued power to wage illegal wars. 

“Our report shows how this is possible. Governments must use every tool in the box – and national development banks are an underappreciated tool they can use – right now.”

NOTES FOR EDITORS:

• The data is also available for download on Oil Change International’s energyfinance.org database. The new data on NDBs spans 7,800 transactions between 2016 and 2024 provided by 54 institutions in the G20. Our data is free and publicly available to make sure G20 governments can be held accountable to their promises to build a liveable and just future.