COP26: an alliance to put an end to international funding in fossil fuels

The announcement is important: twenty countries and five public banks, including major fossil fuel funders such as the United States, Canada or the United Kingdom, but also the French Development Agency, Denmark, Finland, Mali, New Zealand, Ethiopia, Zambia or Costa Rica, collectively pledged, Thursday, November 4, during the Glasgow climate conference (COP26), to end their public investments in fossil fuels – oil, gas and coal – internationally from the end of 2022. They will only authorize themselves to finance projects accompanied by “Mitigation devices” greenhouse gas emissions (carbon capture, for example).

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Signatory countries invest between $ 15 billion and almost $ 17.8 billion (between € 12.9 billion and € 15.4 billion) each year in fossil fuels outside their borders, according to calculations by independent consulting firm Oil Change International. These sums could be redirected to the financing of electricity generation projects using renewable energies, which are still very expensive, especially in developing countries. Still according to Oil Change International, and the NGO Friends of the Earth US, between 2018 and 2020, the G20 public financing institutions and development banks still invested a total of 188 billion dollars in international energy projects. fossils, 2.5 times more than the money invested in renewables.

Lack of funds for renewable

Jonathan Wilkinson, Canada’s Minister for Natural Resources, who was in Glasgow on Thursday, stressed how “Canada’s signature means a lot, because [le pays est] one of the main energy suppliers in the world ”. Also present for the announcement, John Morton, the US Treasury Department’s climate adviser, added that the withdrawal from fossil fuels “Is a central subject for the administration [Biden] since the first day. Upon taking office, President Biden published [le 27 janvier] an executive order calling for an end to international financing of fossil fuels ”.

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She also a signatory, Vivienne Yeda Apopo, the Managing Director of the Development Bank of East Africa, explained that she hopes the agreement will stimulate investment on the continent: “We lack funds for renewable projects, they remain very expensive and investors still consider projects in Africa to be riskier. However, as our territories are often made up of isolated habitats, small units of electricity generation, by solar or biomass, are very suitable and can be much more profitable than investments in fossil fuels. “

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COP26: an alliance to put an end to international funding in fossil fuels