October, 30 2023, 08:08am EDT
![Oil Change International](https://assets.rbl.ms/32012638/origin.png)
Over 250 organizations back groundbreaking efforts by OECD countries to end $41 billion a year in fossil fuel finance
- Proposal could end USD 41 billion per year flowing from government-run Export Credit Agencies to fossil fuels, and free it up for clean energy instead
As Organisation for Economic Co-operation and Development (OECD) delegates prepare to meet in Paris from November 6-10, over 250 civil society organizations (CSOs) from 30 countries published an open letter calling on negotiators to support an end to OECD export finance for fossil fuels. Signatories include Amnesty International, Greenpeace International, and Friends of the Earth International.
The Financial Times (FT) has revealed that the UK and the EU will put forward proposals for doing so, with Canada planning to back the UK’s proposal. These efforts can end the USD 41 billion per year flowing to fossil fuel projects from government-run OECD export credit agencies (ECAs).
The OECD Arrangement on Officially Supported Export Credits sets rules that all OECD country ECAs must follow. OECD countries have previously placed extensive restrictions on the financing of coal, and civil society is now calling on restrictions to cover oil and gas too. Ending OECD oil and gas support is critical to limit global heating to 1.5°C. The International Energy Agency (IEA) has established that no new coal, oil, fossil gas supply or LNG infrastructure investments are compatible with a 1.5°C warming limit.
The proposal is expected to attract significant support, since over 50% of OECD countries already signed on to the Clean Energy Transition Partnership (CETP), an international commitment forged in Glasgow in 2021 under which signatories promised to end their international public finance for fossil fuels by the end of 2022 and support efforts to advance this agenda elsewhere, “in particular at the OECD.”
The civil society letter, addressed to CETP signatory country negotiators in the OECD, calls on them to live up to their commitment and support the UK’s and the EU’s efforts to end public finance for fossil fuels. Canada is already planning to do so. According to the Financial Times, Canada’s finance department stated it “looked forward to working alongside like-minded partners at the OECD and in other international forums to grow and promote the clean economy around the world”.
Oil Change International research shows that OECD ECAs provided an average of $41 billion per year in export support to fossil fuels between 2018 and 2020, almost five times more than their clean energy export finance ($8.5 billion). This directly contradicts international climate goals, including the CETP and the Paris Agreement objective to align financial flows with the low-carbon energy transition. OECD ECAs are particularly responsible for advancing large fossil fuel infrastructure projects that enable the rest of the industry, for example investing in 56 percent of new hazardous liquified gas (LNG) export terminal capacity built in the last decade (providing at least $81 billion total).
The initial OECD proposal is expected to kick-off a period of negotiations on oil and gas export finance restrictions at the OECD starting on 6 November. These negotiations will succeed only if and when a large enough number of OECD members support the proposed restrictions. By doing so, OECD members have a historic opportunity to not only avoid breaching climate goals, but also stranded fossil fuel assets.
Nina Pusic, Strategist at Oil Change International, said: “This is the moment where OECD countries can turn their words into action. Will they live up to the pledge most of them made in Glasgow in 2021 to end international public finance for fossil fuels at the OECD? All eyes are on them, the world is watching. Immediate action is necessary to align global financial flows with a habitable climate future, and this November represents a critical opportunity that we can’t afford to miss.”
Kate DeAngelis, Senior International Finance Program Manager at Friends of the Earth United States, said: “We have waited long enough for the United States, and other wealthy historical emitters, to be a force for good at the OECD. The U.S. must turn away from its multi-billion dollar fossil financing and support the UK and Canada proposal, leading the push to finally end export credit agency support for fossil fuels.”
Yuki Tanabe, Program Director at Japan Center for a Sustainable Environment and Society (JACSES), said: “Japan should not be a blocker at the OECD negotiations and should agree to end its public finance for fossil fuel projects. Ammonia and hydrogen co-firing should not be exempted as ‘abatement’ technologies, since the current co-firing development roadmap is not in line with the Paris goals”
Samuel Okulony, Chief Executive Officer at Environment Governance Institute Uganda (EGI), said: “The impacts of climate change in Africa are a matter of life and death, and Japan, Korea and other OECD countries should listen to the lived realities of global south communities, who have been devastated by the impacts of climate change for decades. It is imperative that these countries make resolute commitments, support a resolution to stop public financing for fossil fuels at the OECD, and demand the global community align itself with the commitments to keep the 1.5°C target alive.”
Oil Change International is a research, communications, and advocacy organization focused on exposing the true costs of fossil fuels and facilitating the ongoing transition to clean energy.
(202) 518-9029LATEST NEWS
BREAKING: Biden to 'Stand Down'; Endorses Kamala Harris
' I want to offer my full support and endorsement for Kamala to be the nominee of our party this year'
Jul 21, 2024
Breaking News...more to come
UPDATE : In response to President Biden’s announcement that he is no longer seeking reelection, MoveOn Political Action Executive Director Rahna Epting released the following statement:
“President Joe Biden‘s legacy is defined by defeating Donald Trump, restoring our nation’s commitment to our democracy, and delivering one of the most impressive domestic policy agendas in modern history. Just like he did in 2020, President Biden is making a tremendous personal sacrifice to preserve our democracy, putting the interest of the American people first, and he has the gratitude of our nation and our millions of members.
“Vice President Harris is tested and respected, and her voice is critically important at this moment. MoveOn and our members have her back and believe that those who share our commitment to winning this election and protecting our futures will do everything in their power to lift her up and stop Trump in his tracks.
MoveOn is more driven than ever to unifying the anti-Trump coalition and defeating Donald Trump and extremist MAGA Republicans once again in 2024. We are all in on electing Kamala Harris and Democrats to the U.S. House and Senate and we look forward to engaging our members and surge voters across the country to rise up and make their voices heard this fall.”
President Joe Biden has made the decision to not run for president. Read his just released statement below.
Keep ReadingShow Less
Israeli Military Strikes Claim Lives of 64 Individuals in a Single Day
'When is enough? When will the war ever end?'
Jul 21, 2024
The local Health Ministry says at least 64 people were killed and 105 injured in Israeli attacks across Gaza in the past 24 hours. Many victims are still under the rubble and on roads, with civil defense crews not able to reach them, it adds.
The Israeli military has launched numerous deadly strikes focused on the Al-Nuseirat refugee camp, including the targeting of multiple UN-run schools housing displaced people.
Nuseirat residents described living in constant fear of being bombed and a deteriorating humanitarian situation.
“The situation is scary,” said Rahma Abu Hajjaj, a 39-year-old mother of five from Nuserirat. “There are no warnings, there are no alarms when homes are bombed, we are hiding all the time and we do not know why they are targeting these homes.”
"We hear the sounds of explosions in Nuseirat and we see the smoke rising from here in Deir Al-Balah, the last refuge you can say and we are being terrorized by the feeling tanks may roll here," Tamer Aburakan, a resident of Gaza City, told
Reuters.
"Where should we go next? The entire Gaza Strip is under fire, and we are being hunted like deer in a forest. When is enough? When will the war ever end?" he said via a chat app.
Israeli Prime Minister Benjamin Netanyahu is due to travel to the US on Monday. Netanyahu is expected to meet with US President Joe Biden on Tuesday afternoon. The next day, he is due to address a joint session of US Congress.
Thousands of people are expected to protest against the visit of Netanyahu for whom the top prosecutor of the International Criminal Court is seeking an arrest warrant for war crimes.
At least 38,983 Palestinians have been killed and 89,727 others injured in Israel's military offensive on Gaza since Oct. 7, Gaza's health ministry said on Sunday, including the 64 people killed in the last 24 hours.
Keep ReadingShow Less
Israel Bombs Yemen Saturday in Escalation with Houthis
The attack came a day after the Houthis claimed responsibility for a drone attack on Tel Aviv
Jul 20, 2024
Houthi-run media say Israeli air strikes Saturday targeted oil storage facilities in the Yemeni port city of Hodeidah and that there are an unspecified number of fatalities and injuries.
The attack came a day after the Houthis claimed responsibility for a drone attack on Tel Aviv that killed one person and struck just yards from a U.S. Embassy branch office.
Israel’s air strikes will not stop the Houthi's military operations in support of the Palestinian people, Houthi political bureau member Mohammed al-Bukhaiti said in a post on X, warning they will instead increase until the war in Gaza ends. “The Zionist entity will pay the price for targeting civilian facilities, and we will meet escalation with escalation,” al-Bukhaiti wrote.
Military and political analyst Elijah Magnier told Al Jazeera, “Is this going to change the course of action of a non-state actor that is motivated to support the people of Gaza? Certainly not,” Magnier said. “They’ve been given a perfect reason to increase the attacks. We have not seen the end of it – far from it,” he said.
In another post on X, the Houthis’ spokesman, Mohammed Abdulsalam, called the Israeli air strikes “a brutal Israeli aggression against Yemen that aims to deepen people’s suffering and to pressure Yemen to stop supporting Gaza.” Abdulsalam called the attack an Israeli “dream that will not come true. We affirm that this brutal aggression will only increase the determination of the Yemeni people and their valiant armed forces to be steadfast and to continue their support for Gaza. The Yemeni people are able to face all challenges for the sake of victory for oppressed Palestine and the people of Gaza, whose cause is the most just on earth.”
Keep ReadingShow Less
Most Popular