Leaders and Laggards: New Analysis Shows Global Shift Away from Fossil Fuel Financing Continues Despite U.S. Exit

• Despite the U.S. withdrawal from the Clean Energy Transition Partnership (CETP), a global coalition of countries continues to reduce international fossil fuel financing, with public funding dropping by two-thirds since 2019 based on latest data.
• Norway and Australia have fulfilled commitments to end international fossil fuel financing, while Spain and Sweden have strengthened existing restrictions. 
• Germany has emerged as the primary violator of the CETP agreement, raising concerns as a new government takes office.
• Other signatories must stand by their CETP commitment to tackle the climate, energy security and energy affordability crises, including through launching a joint clean energy finance pledge. 

New analysis released today by Oil Change International shows that despite political headwinds and the Trump Administration withdrawing, a global coalition of countries continue to shift billions in government finance away from international fossil fuel projects, strengthening their policies to further restrict fossil fuels and boost clean energy. 

The 40-signatory Clean Energy Transition Partnership (CETP), forged in Glasgow at the 2021 COP26 UN Climate Summit, commits governments and institutions to end taxpayer finance for international fossil fuel projects and fully prioritize their public finance for clean energy. Analysis published late last year shows that this partnership is working, with international fossil fuel finance falling considerably among signatories – by two-thirds (USD 15 billion) in 2023 compared with a 2019 pre-CETP baseline. Broadly, signatories have eliminated or considerably reduced their fossil fuel financing, even in countries where policies allow fossil fuel loopholes.

Countries have however not increased their clean energy finance at the same scale. In the context of aid budget cuts and an woefully inadequate climate finance target adopted at COP29, it is key that signatories match their fossil fuel restrictions with increased, debt-free finance for renewable energy as they work on their Clean Energy Action Plan and the UK builds its Global Clean Power Alliance.

OCI’s regularly-updated CETP policy tracker published today, shows that since the last update in October 2024:

• Norway and Australia have published policies ending taxpayer finance for international fossil fuel projects, fulfilling their CETP promise. 
• Spain graduates to a leader for the first time, after publishing a policy for CESCE, the government export credit agency, that ends fossil fuel finance in line with the CETP agreement.
• Sweden has closed a gas power loophole in its export finance policy that could have allowed support for oil and gas extraction. 
• The United States left the CETP in February 2025 following the inauguration of the Trump Administration. The Biden Administration joined CTEP in 2021, but struggled to ensure compliance by US EXIM, the US’s export credit agency, which claimed the commitment did not apply to them. The US remains bound by a near-identical G7 commitment to end fossil fuel finance. Financial analysts say that the policies of the Trump Administration will not stop the energy transition.
• Eleven out of seventeen high-income CETP signatories with significant amounts of international energy finance have policies that end fossil fuel support. Four have violated their pledge by financing new fossil fuel projects since the deadline passed. 
• The EU Commission recently proposed new investments in Liquefied Natural Gas (LNG), which would risk undermining the progress its Member States have made in restricting fossil fuel finance.

A Fossil Fuel Violations Tracker, also published today, shows that now that the U.S. has left the CETP agreement, Germany is now its lead violator, approving the most fossil fuel finance since the end of 2022, providing $1.5 billion for 11 projects. This comes amongst concern that the Christian Democratic Union (CDU), who recently won the German federal election, pledged to tear up the last government’s international fossil fuel finance restrictions. 

As the Trump administration leaves the CETP and in the context of growing geopolitical instability, it is key that members, including Germany and the EU, stand by their CETP and G7 commitments. According to the International Energy Agency’s CEO Fatih Birol, an accelerated transition to renewable energy is key not just to meet climate goals, but also helps make “energy systems much more secure and resilient, … the energy prices affordable and at the same time reduces the reliance on other countries.”

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

“The CETP initiative has been successful in bringing down fossil fuel finance, and it will make even more progress – with or without the Trump Administration. Signatory governments, including Germany, must stay committed – the only solution to the climate, energy security and affordability crises is a fair fossil fuel phase-out and scaling up clean energy. 

The CETP countries made a promise in Glasgow in 2021 – we will continue to make sure it is kept.”