{"id":49181,"date":"2023-09-07T16:10:17","date_gmt":"2023-09-07T15:10:17","guid":{"rendered":"https:\/\/www.climatechangenews.com\/?p=49181"},"modified":"2023-09-07T16:10:17","modified_gmt":"2023-09-07T15:10:17","slug":"rich-countries-sink-billions-into-oil-and-gas-despite-cop26-pledge","status":"publish","type":"post","link":"https:\/\/www.climatechangenews.com\/2023\/09\/07\/rich-countries-sink-billions-into-oil-and-gas-despite-cop26-pledge\/","title":{"rendered":"Rich countries sink billions into oil and gas despite Cop26 pledge"},"content":{"rendered":"<p><strong>The United States, Italy and Germany are among rich countries providing billions of dollars of public subsidies to fossil fuel projects abroad this year despite promises to end this support.\u00a0\u00a0<\/strong><\/p>\n<p>Export credit and development agencies from six developed nations have approved $4.4 billion in funding for oil and gas projects overseas since the start of 2023, <a href=\"https:\/\/priceofoil.org\/2023\/09\/06\/fossil-finance-violations-tracking-fossil-fuel-projects-that-violate-commitments-to-end-international-public-finance-for-fossil-fuels\/\" target=\"_blank\" rel=\"noopener\">research<\/a> from campaigning group Oil Change International shows.<\/p>\n<p>More than half of the total financing has been provided by the United States ($1.5 billion) and Italy ($1.2 billion), followed by Germany, Japan, the Netherlands and Switzerland.<\/p>\n<div style=\"min-height: 425px;\"><script type=\"text\/javascript\" defer src=\"https:\/\/datawrapper.dwcdn.net\/vj6po\/embed.js?v=1\" charset=\"utf-8\"><\/script><noscript><img decoding=\"async\" src=\"https:\/\/datawrapper.dwcdn.net\/vj6po\/full.png\" alt=\"\" \/><\/noscript><\/div>\n<p>Claire O\u2019Manique from Oil Change International said the countries are &#8220;going rogue by backtracking on their commitment to end international public finance for fossil fuels&#8221;.\u00a0 &#8220;Public money that should be going to support a just transition to renewable energy is instead being pumped into more climate-wrecking fossil fuel projects&#8221;, she added.<\/p>\n<h3>One pledge, many interpretations<\/h3>\n<p>Twenty countries signed up to the Glasgow Statement at Cop26 pledging to end new direct public finance for overseas fossil fuel projects by the end of 2022.<\/p>\n<p>However, the signatories have interpreted the promise in different ways.<\/p>\n<blockquote><p><a href=\"https:\/\/www.climatechangenews.com\/2023\/09\/07\/mexico-elections-claudia-sheinbaum-xochitl-galvez\/\" target=\"_blank\" rel=\"noopener\"><strong>Mexico\u2019s ruling party<\/strong> picks climate scientist for presidential run<\/a><\/p><\/blockquote>\n<p>The <a href=\"https:\/\/assets.publishing.service.gov.uk\/government\/uploads\/system\/uploads\/attachment_data\/file\/975753\/Guidance_-_Aligning_UK_international_support_for_the_clean_energy_transition_-_March_2021_.pdf\" target=\"_blank\" rel=\"noopener\">United Kingdom<\/a> and <a href=\"https:\/\/www.assemblee-nationale.fr\/dyn\/16\/textes\/l16b0273_projet-loi\" target=\"_blank\" rel=\"noopener\">France<\/a> have stopped all public subsidies going to international fossil fuel projects. Italy <a href=\"https:\/\/www.recommon.org\/wp-content\/uploads\/2023\/03\/Italian-implementation-post-cop26Glasgow.pdf\" target=\"_blank\" rel=\"noopener\">carved out<\/a> a wide range of energy security exemptions for the continued support of fossil fuel projects. Germany <a href=\"https:\/\/www.climatechangenews.com\/2023\/07\/27\/germany-plans-to-keep-funding-new-gas-projects-overseas-despite-pledge\/\" target=\"_blank\" rel=\"noopener\">published<\/a> a draft policy for its export credit agency last July planning to support new gas projects overseas until 2025. The US has not made its guidelines public.<\/p>\n<p>The Glasgow pledge allowed exceptions in \u201climited and clearly defined circumstances that are consistent with a 1.5C warming limit\u201d. The International Energy Agency <a href=\"https:\/\/www.climatechangenews.com\/2021\/05\/18\/iea-end-fossil-fuel-expansion-now-net-zero-energy-emissions-2050\/\" target=\"_blank\" rel=\"noopener\">warned<\/a> last year that investment in new coal, oil and gas production was incompatible with limiting global warming to 1.5C.<\/p>\n<h3>LNG and oil expansion<\/h3>\n<p>The US and Germany have backed projects aiming to boost the production and trade of liquified natural gas (LNG), which has been in heightened demand since Russia&#8217;s invasion of Ukraine.<\/p>\n<p>The expansion of an oil refining facility in Indonesia&#8217;s Borneo has received support from the Italian and US export credit agencies. The US Export-Import Bank <a href=\"https:\/\/www.climatechangenews.com\/2023\/05\/16\/us-backs-indonesian-oil-refinery-despite-pledge-to-end-fossil-fuel-finance\/\" target=\"_blank\" rel=\"noopener\">justified<\/a> its backing of the project by claiming it would allow Indonesia to reduce its reliance on imported fossil fuels.<\/p>\n<blockquote><p><a href=\"https:\/\/www.climatechangenews.com\/2023\/09\/06\/african-leaders-skirt-over-fossil-fuels-in-climate-summit-declaration\/\" target=\"_blank\" rel=\"noopener\"><strong>African leaders<\/strong> skirt over fossil fuels in climate summit declaration<\/a><\/p><\/blockquote>\n<p>Analysts and campaigners told Climate Home News that expansion of oil refining falls within the scope of the Glasgow agreement.<\/p>\n<p>The majority of the $4.4 billion greenlit in 2023 comes in the form of state-backed guarantees provided by export credit agencies. These products limit the risk taken by companies selling services and goods in other countries, influencing investment.<\/p>\n<p>Climate Home News has contacted the export credit agencies of Germany, Italy and the US for comment.<\/p>\n","protected":false},"excerpt":{"rendered":"The US, Germany and Italy have been accused of backsliding on a Glasgow promise to end public subsidies to fossil fuel projects overseas","protected":false},"author":98,"featured_media":49183,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4264,82,4272,98],"tags":[4995,270,518,102],"coauthors":[4974],"class_list":["post-49181","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cop26","category-eu","category-fossil-fuel-subsidies","category-us","tag-export-finance","tag-germany","tag-italy","tag-usa","type-news"],"acf":[],"yoast_head":"<!-- This site is optimized 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