In a startling revelation, foreign aid for fossil fuel projects surged dramatically in just one year, rising from $1.2 billion in 2021 to $5.4 billion in 2022, according to a new report.
This spike has alarmed environmental advocates, with Jane Burston, CEO of the Clean Air Fund, calling it a “wake-up call” for global efforts to tackle climate change.
Burston emphasized that continuing to support polluting industries undermines global health and climate stability.
Experts point out that international public funding is not nearly enough to meet the urgent demands of the climate crisis, and often fails to reach the most vulnerable communities.
Adalberto Maluf, from Brazil, which is set to host next year’s COP30 climate summit, echoed this concern, stating that despite global pledges to reduce emissions, the reality is that fossil fuel funding is still thriving.
Experts call for urgent action to prioritize clean energy and air quality in global pledges.The report identifies the top five funders of fossil fuel projects from 2018 to 2022 as the Islamic Development Bank, Japan International Cooperation Agency, the Asian Development Bank, the European Bank for Reconstruction and Development, and the International Finance Corporation, the World Bank’s private sector branch.
Although some fossil fuel aid is used for projects that have no viable clean alternatives, much of it is directed toward energy projects in regions where renewable sources are readily available.
The report highlights that the cost of financing clean energy projects in poorer nations is over twice as high as in wealthier ones, trapping these countries in a cycle of fossil fuel dependence.
As the world approaches the climate summit in Azerbaijan in November, there is growing concern that air quality issues may be overshadowed, despite air pollution causing 4 million deaths annually.
The Clean Air Fund urges negotiators to prioritize both climate and air quality initiatives in their financial commitments.