In response to the proposal to end public fossil fuel finance from export credit agencies being discussed at the Organization for Economic Cooperation and Development (OECD) negotiations in Paris this week, Ashfaq Khalfan, Oxfam America’s Climate Justice Director, said:
“A ‘Trump-proof’ climate deal of this magnitude is mission critical for the Biden administration — not only to secure its legacy on climate progress, but also help safeguard every community, both in the U.S. and globally, from damaging storms, heat waves, and rising seas. The climate crisis won’t stop for a climate denier in the White House, and this is the last chance for the current administration to stop billions in global handouts to fossil fuel corporations.
“It is absolutely appalling that even today — knowing about the catastrophic consequences of planet-warming pollution — billions of dollars each year are still invested in fossil fuels. It’s hypocritical that rich countries are saying they don’t have enough money for an ambitious new global climate finance goal at COP29 while they are giving handouts to the very corporations destroying our communities.
“This international agreement, which would end at least $41 billion in financing for oil and gas projects each year and curtail much larger investments, would not be able to be walked back by an incoming Trump administration. Government agencies like the Export-Import Bank of the United States (EXIM) should have no part in supporting fossil fuel production or dependent sectors like oil, gas, and aviation. Shifting public funds from fossil fuels to clean energy is essential to our survival. The Biden administration should push remaining countries that have not yet committed to ending export finance for fossil fuels to agree to this historic deal.”
/ENDS
Notes to editors:
Export credit agencies are government-owned institutions that provide loans, credit, guarantees, or insurance, often at subsidized rates, to companies and foreign buyers. Between 2018 and 2020 they provided an average of $41 billion each year for fossil fuels, nearly five times their support to clean energy.
Last year, Oxfam America and Perspectives Climate Research found that between 2017 and 2021 EXIM provided nearly $6 billion in financing for fossil fuel projects and $120 million for clean energy.