EU Ministers Undercut Fossil Fuel Phaseout Leadership with Weak Finance Position Before COP30

Today, EU Finance ministers approved the EU Council Conclusions on Climate Finance ahead of COP30.

In response, Laurie van der Burg, Public Finance Manager at Oil Change International, said: 

“The EU wants to be seen as a climate finance leader, but this is more self-praise rather than progress. It is good to see stronger signals on adaptation finance, but the EU still falls short of ending its fossil fuel subsidies or contributing its fair share to global climate finance. Both are essential for the global fossil fuel phaseout the EU claims to champion. Instead, by overhyping private finance mobilization, the EU is trying to dodge legal responsibilities to provide public climate finance at the needed scale and quality. 

“It is hypocritical to expect debt-ridden Global South countries to fund renewable energy through costly private loans, when the EU’s own energy transition progress has relied on public investment and planning.

“Without serious commitments to scale up public climate finance, including by ending fossil fuel subsidies, taxing the ultra-wealthy, and reallocating military spending, the EU risks losing credibility ahead of COP30.” 

Notes to the editor

Oil Change International’s recent research shows that:

• Rich countries can raise $6.6 trillion annually to pay for climate action at home and abroad.
• Just energy transition progress is being driven by public finance and planning. But the EU and peer countries’ are putting forward proposals that heavily rely on attracting private finance to the transition in the Global South. Private Finance has failed to meet energy transition needs with a track record of driving 4-7 times less investment than promised.