Down But Not Out Deep cuts to fossil fuel finance, unfinished business on clean energy
Deep cuts to fossil fuel finance, unfinished business on clean energy
Deep cuts to fossil fuel finance, unfinished business on clean energy
In 2021, Clean Energy Transition Partnership (CETP) signatories committed to end their international public finance for fossil fuels within a year of joining the partnership and to fully prioritize their support for clean energy. This brief provides the latest progress report on the CETP’s implementation.
Policy Recommendations
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CETP signatories should maintain progress in ending international public support for fossil fuels, in the name of climate action, energy security, and affordability. This work should include members using their voice and vote at multilateral development banks and stopping gas finance.
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CETP signatories should redouble efforts to engage more countries in the initiative. Major financers such as South Korea, Japan, and China, as well as multiple multilateral development banks, still have not signed on.
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CETP signatories should implement commitments to phase out domestic fossil fuel subsidies. The credibility of the CETP depends on all signatories showing climate leadership domestically as well. Many CETP countries continue to provide significant domestic subsidies for fossil fuels.
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CETP signatories should materially scale up clean energy finance on fair and just terms, especially for transformative energy democracy and environmental justice priorities.
The brief’s findings include the following:
- International fossil fuel finance from signatories continues to drop. Compared with the pre-CETP baseline, in 2025 CETP members dropped their fossil fuel financing to USD 3.3 billion, representing an up to 80% drop. This continued and sustained drop in fossil fuel finance means the CETP is one of the most successful climate leadership coalitions when it comes to implementation.
- The 28% increase in clean energy finance in 2025 compared with the pre-CETP baseline does not match the drop in fossil fuel finance. Only 42% of the funding removed from fossil fuels has been redirected into clean energy.
- Some countries continue to break the pledge, despite the political and economic rationale for reducing fossil fuel dependencies being stronger than ever. Italy is the biggest fossil fuel financer, followed by Germany and Switzerland.