Foreign assistance for fossil fuel projects increased fourfold within just one year
Activists have pointed out that with only 1% of foreign aid directed towards clean air projects, nations "cannot persist with polluting practices at the expense of climate stability." A recent report revealed that foreign aid for fossil fuel projects surged from $1.2 billion in 2021 to $5.4 billion in 2022, marking a quadrupling in a single year.
Jane Burston, CEO of the nonprofit Clean Air Fund that conducted the research, described the rise in fossil fuel aid as "shocking" and a "wake-up call." She emphasized that the world cannot continue supporting polluting practices at the cost of global health and climate stability.
Adalberto Maluf, Brazil's national secretary of urban environment and environmental quality, noted that international public funding often falls short of addressing the challenges and frequently fails to reach the most affected populations. He remarked, "Even as countries pledge to reduce their emissions, increase their climate change ambitions, and transition away from fossil fuels, the figures tell a different story. It doesn't have to be this way."
The report identified the top five funders of fossil fuel projects between 2018 and 2022 as the Islamic Development Bank, Japan International Cooperation Agency, Asian Development Bank, European Bank for Reconstruction and Development, and the International Finance Corporation, which is the private sector branch of the World Bank.
The G20 nations have committed to phasing out "inefficient" fossil fuel subsidies since 2009. In 2022, the G7 group strengthened its language regarding the cessation of taxpayer funding for projects that generate energy through coal, oil, and gas.
Some fossil fuel aid is allocated to projects lacking clean alternatives in wealthier countries, such as those producing fertilizers or cement. However, it also encompasses energy sector projects where renewable options are readily available. According to the International Energy Agency, the cost of capital for clean energy projects in developing nations is more than twice that of wealthier countries, with high upfront costs and unfavorable loan terms forcing poorer nations to continue using fossil fuels.
This report comes ahead of a climate summit in Azerbaijan scheduled for November, where negotiators aim to secure new financial commitments. The Clean Air Fund urged negotiators to prioritize air quality, noting that outdoor air pollution is responsible for 4 million deaths annually, yet clean air projects only receive 1% of foreign aid.
Burston concluded, "Tackling air pollution is essential – not only for protecting our climate but for safeguarding public health. The stakes couldn't be higher."