Press Release

Oil Change International responds to mixed bag at COP28 Finance Day outcomes

December 04, 2023

Today was Finance Day at the UN climate talks in Dubai, with a mixed bag of outcomes according to Oil Change International campaigners. Multilateral development bank representatives met with the COP28 Presidency, and failed to show progress in redirecting much needed finance for a just energy transition, while export credit agencies indicate a significant drop in fossil fuel support.

FOR IMMEDIATE RELEASE

Contact:

Nicole Rodel, Oil Change International – nicole@priceofoil.org

Oil Change International responds to mixed bag at COP28 Finance Day outcomes
Dubai, December 4 – Today was Finance Day at the UN climate talks in Dubai, with a mixed bag of outcomes according to Oil Change International campaigners.

Multilateral development bank representatives met with the COP28 Presidency, and failed to show progress in redirecting much needed finance for a just energy transition, while export credit agencies indicate a significant drop in fossil fuel support.

Bronwen Tucker, Global Public Finance Lead at Oil Change International, said:

“On Finance Day at COP28, instead of rich country governments committing to pay their fair share for a fossil fuel phase out, they tried to shirk their responsibilities.

“In event after event, including the much-hyped discussions between multilateral development bank heads and the COP28 presidency, banks and the private sector were presented as the ‘dream team’ for funding the energy transition. This conveniently ignores that both are still bankrolling massive fossil expansion and have a failed track record on delivering the key solutions like renewable-ready grids or energy access for those who need it most.

“Record heat. Deadly floods. Toxic air. It has never been clearer that we must stop funding fossil fuels if we want a safe, livable planet, and we can’t waste more time on finance-washing. We need a fast, fair, full, and funded phase out of fossil fuels – and it will not be possible unless rich countries pay their fair share on fair terms.”

Nina Pusic, Public Finance Strategist at Oil Change International, said:

“On a surprising positive note, the new Export Finance for the Future (E3F) Transparency Report shows an emerging trend in public trade finance: out with fossil fuels, and in with renewable energy. In only one year, E3F members cut their fossil fuel support from four billion dollars to one billion. That’s still one billion too much, but important proof that fossil free finance policies are working.”

“Today’s Finance COP28 events, including the launch of the Net Zero Export Credit Agency Alliance (NZECA) add further pressure on major Clean Energy Transition Partnership laggards like the United States and Italy to keep their promises to end export finance for fossil fuels, including for advocating for an end to fossil fuel finance at the OECD, a group of the richest countries in the world.”

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Notes:

This rolling implementation tracker outlines country-level progress on implementation of the Clean Energy Transition Partnership (CETP). CETP is a joint commitment from 40 countries and public finance institutions to “end new direct public support for the international unabated fossil fuel energy sector by the end of 2022” and instead “prioritise our support fully towards the clean energy transition.” Yesterday at COP28, Norway became the newest member.

222 civil society networks and organizations from 55 countries set expectations for world leaders on fair public finance for a fossil fuel phase out at COP28 in an open letter released yesterday, available in Arabic, French, Portuguese, Spanish, Korean, and Japanese.

This fossil fuel finance violations tracker outlines the laggard countries who have broken their commitment to the CETP, namely the U.S., Italy, and Germany, and continued to finance fossil fuel projects with public money in 2023

The IPCC’s AR6 report highlights public finance for fossil fuels as ‘severely misaligned’ with reaching the Paris goals, but that if shifted, it could play a critical role in closing the mitigation finance gap, enabling emission reductions and a just transition. More background on the role international public finance plays in shaping energy systems is available in this Oil Change International briefing.