France Risks Backsliding on Leadership in Ending International Fossil Fuel Finance
For immediate release
In a communication from the French government released on 6 April, France classifies fossil gas as a transition fuel and opens up possibilities for French public financing institutions to support gas power projects. This move represents backsliding on the leadership shown by France on ending international fossil fuel handouts and comes after Trump pressuring the European Union to buy more US Liquefied Natural Gas (LNG).
France committed to end international public finance for fossil fuels as part of the Clean Energy Transition Partnership (CETP) in 2021. Until now it has fully lived up to this commitment and has not provided any new international public financing for fossil fuels since the passing of the 2022 deadline for ending such support. This has contributed to wider efforts that helped realize a drop in international public finance for fossil fuels by up to two-thirds (a drop of up to USD 15 billion dollars a year).
While the government communication suggests gas investments might be needed to deliver electricity access, international public finance for gas is not typically used nor best suited for this – and for good reason. The science is clear that gas use needs to decline rapidly to meet climate goals, leaving no space for gas infrastructure expansion. Moreover, such expansion is unnecessary as renewable energy is now the cheapest and most reliable option for delivering electricity access. Unlike gas, it shields countries from increased reliance on volatile and expensive gas imports amidst growing global instability.
Gaïa Febre, International Policy Lead at RAC France says:
“Portraying gas as a “transition fuel” and possibly allowing its financing through public institutions to support gas projects is, on the contrary, a step backward in history. At COP28, nearly 200 nations committed to transition away from fossil fuels – a testament to the global resolve for change. France was particularly vocal in advocating for this transition. This year marks the 10th anniversary of the Paris Agreement, which was adopted at COP21, where France played a key role in shaping this historic accord. In doing so, France is also playing with its own legacy. In challenging times, we cannot afford to be weathervanes, shifting direction with the wind. Now is not the time for backtracking; we need countries like France to show coherence and determination, so we can count on them to lead toward a just world free of fossil fuels.”
Laurie van der Burg, Campaign Manager Global Public Finance at Oil Change international says:
“In the midst of growing global instability, it is critical that countries like France stand by their leadership in phasing out fossil fuels. Overseas investments in gas not only undermine this leadership – they risk deepening other countries’ reliance on expensive and unreliable gas imports. We have seen the harmful effects of such dependency in countries like Bangladesh, where expanded gas infrastructure has led to unaffordable gas imports, increased debt levels and blackouts. Instead of propping up fossil fuel profits, France should continue prioritizing its public money for renewable energy solutions which today are the cheapest, most reliable and fastest option for expanding electricity access in the Global South.
“France has been keeping its promise and stopped its international public finance for fossil fuels in 2022. It should not break it now.”
Sources:
www.seforall.org/system/files/2020-11/EF-2020-UL-SEforALL_0.pdf