Countries cut international fossil fuel finance by up to 80%, but fall short on clean energy

PRESS RELEASE

October 27, 2026—Members of the Clean Energy Transition Partnership (CETP) have cut their international public finance for fossil fuels by up to 80% from the annual average before the partnership launched (the 2019–2021 annual average), new analysis shows. But members have redirected less than half of the funding cut from fossil fuels into clean energy, and most clean energy support goes to advanced economies.

Fossil fuel finance fell to USD 3.3 billion in 2025, an annual reduction of USD 8.5–13.2 billion across members, demonstrating sustained delivery on the partnership’s climate commitments.

These findings are outlined in Down But Not Out: Deep Cuts to Fossil Fuel Finance, Unfinished Business on Clean Energy, released today by the International Institute for Sustainable Development (IISD), Oil Change International (OCI), and Friends of the Earth U.S.

CETP members committed to ending direct international public finance for unabated fossil fuels and fully prioritizing clean energy instead. The assessment finds continued progress in ending fossil fuel support despite global geopolitical headwinds and ongoing energy crises. Eleven of the 16 high-income signatories now have energy finance policies fully aligned with the pledge, compared with 10 identified in last year’s progress report.

“The sustained reduction in fossil fuel finance shows that CETP members are delivering. That implementation record makes CETP one of the most successful climate coalitions. Countries like South Korea, Japan, and China, the largest providers of international public finance for fossil fuels outside CETP, should join the coalition by COP 31 to accelerate these cuts and redirect billions more in public finance towards clean energy,” said Adam McGibbon, campaign strategist at OCI.

Remaining fossil fuel support is concentrated among a few members, highlighting where stronger implementation could deliver further gains. Italy provided the most fossil fuel finance, at USD 6 billion in 2023–2025, followed by Germany at USD 2.5 billion and Switzerland at USD 1.6 billion. Export credit agencies, which provide government-backed loans, insurance, and

guarantees for exports, accounted for 64% of members’ fossil fuel support in 2025, making them a priority for closing policy loopholes.

Clean energy finance continues to rise. Members’ support in 2025 was USD 5.6 billion, 28% above the 2019–2021 annual average. However, the increase remains too small to match the reductions in fossil fuel support: only 42% of the funding removed from fossil fuels has been redirected into clean energy. Non-CETP G20 countries increased their clean energy finance by 36% over the same period.

Emerging and developing economies also need more support; they received just 24% of members’ clean energy finance in 2025, compared with 71% for advanced economies.

“Following April’s conference on transitioning away from fossil fuels in Santa Marta, Colombia, CETP offers a model for its ‘coalition of doers’ to tackle the financial incentives and macroeconomic dependencies that sustain fossil fuel use. COP 31’s climate-finance discussions, including the Veredas Dialogue, must build on this progress and scale up clean energy finance on fair terms for emerging and developing economies, alongside the additional climate finance those countries are owed,” said Natalie Jones, Senior Policy Advisor at IISD.

The United States’ departure from CETP in 2025 illustrates the risk of reversing progress. In fiscal year 2025, the U.S. Export-Import Bank financed nearly USD 8 billion in fossil fuel projects, compared with USD 117.5 million for clean energy.

Kate DeAngelis, Economic Policy Deputy Director at Friends of the Earth U.S., said: “The United States has shown what happens when a country leaves the Clean Energy Transition Partnership–its financing of fossil fuels skyrockets. As Congress reauthorizes the U.S. Export-Import Bank, it should restrict its fossil fuel financing, which would shut off a spigot of potentially tens of billions of dollars to this dirty industry.”

To guard against reversals and build on CETP’s progress, the report calls on members to uphold fossil fuel finance restrictions, phase out domestic fossil fuel subsidies, and expand clean energy finance without adding unsustainable debt. It also urges cooperation to pool investment risks and deliver members’ fair share of mitigation, adaptation, and loss and damage finance through new, predictable public funding, primarily grants.

ENDS

Notes for editors

The Clean Energy Transition Partnership (CETP) was launched at COP 26 in Glasgow in 2021 and now has 40 member countries and institutions. Members pledged to end direct international public finance for unabated fossil fuels within a year of joining and fully prioritize clean energy instead.

The brief draws on Oil Change International’s Public Finance for Energy Database, a free database tracking international public finance flows: www.energyfinance.org. The reported figures are conservative estimates because reporting is incomplete. The range in the reduction reflects uncertainty over Canada’s historical international fossil fuel finance.

Report available here https://www.iisd.org/publications/brief/deep-cuts-fossil-finance-unfinished-business-clean-energy  

Media contacts 

• IISD: Mark Raven, [email protected], +447841474125 
• Oil Change International: Khaliel Moses, [email protected] 
• Friends of the Earth U.S.: Lindsay Tice, [email protected], 202-783-7400, ext. 8403

About IISD

The International Institute for Sustainable Development (IISD) is an independent think tank working to accelerate solutions for a stable climate, sustainable resource management, and fair economies. Our work inspires better decisions and sparks meaningful action to help people and the planet thrive.

About Oil Change International

Oil Change International is a research, communication, and advocacy organization focused on exposing the true costs of fossil fuels and facilitating the coming transition toward clean energy.

About Friends of the Earth U.S.

Friends of the Earth United States fights to protect the environment and create a healthy and just world. We speak truth to power and expose those who endanger people and the planet. Our campaigns work to hold politicians accountable and transform our economic systems.