Holding Course, Missing Speed: Protecting progress on ending fossil fuel finance and unlocking clean energy support
This report analyzes progress by Clean Energy Transition Partnership (CETP) signatories in shifting international public finance from fossil fuels to clean energy in 2024 and assesses emerging trends 2 years after the implementation deadline. It finds that CETP members cut fossil fuel finance by up to 78% but need to rapidly scale up finance for renewables and close loopholes that allow continued fossil finance.
This report analyzes progress by Clean Energy Transition Partnership (CETP) signatories in shifting international public finance from fossil fuels to clean energy in 2024 and assesses emerging trends 2 years after the implementation deadline. It finds that CETP members cut fossil fuel finance by up to 78% but need to rapidly scale up finance for renewables and close loopholes that allow continued fossil finance.
Key Findings
- Most signatories continued to cut fossil fuel finance in 2024. In line with trends from 2023, members reduced international support for fossil fuels by up to 78% in 2024, to USD 4.7 billion. This progress demonstrates the tremendous power and positive impact of the CETP as a vehicle of the clean energy transition.
- Only 10 out of 17 high-income signatories have fully aligned their energy finance policies with the CETP pledge. To fully implement the CETP, signatories should close loopholes that allow continued fossil fuel financing.
- Progress on scaling up clean energy finance remains slow. CETP finance for renewable energy increased by only USD 3.2 billion in 2024 compared with 2019–2021, meaning less than one-fifth of the funds shifted from fossil fuels were redirected to clean energy.
- Despite the momentum in winding down fossil fuel finance, the initiative is facing significant headwinds. Rising geopolitical tensions and the United States’ exit in 2024 make CETP gains more fragile.
To safeguard current progress, signatories should adopt a collective target of at least USD 42 billion for scaling clean energy finance in emerging markets and developing economies under the CETP Clean Energy Action Plan and adopt institutional or whole-of-government policies and strategies to ensure this finance is fair, advances a just transition, and prioritizes transformative subsectors, such as grids and storage.