Curbing Public Financing of Fossil Fuels  

An international agreement supported by Friends of the Earth and partners has driven large reductions in public fossil fuel financing.

Tax dollars around the world are funding destructive, international fossil fuel projects. This consistent source of public funds is one of the key factors keeping the industry alive, thanks to governments around the world and some major financial institutions.  

For years, Friends of the Earth U.S. and partners have called out global fossil fuel financiers on this funding and pushed for energy finance reform. As a result, 35 countries and five public financial institutions pledged to end investment in fossil fuels and prioritize clean energy instead. This agreement is called the Clean Energy Transition Partnership (CETP) and is a huge win, originally giving signatories until the end of 2022 to make these changes.  

 Two years after this deadline, a new report by the International Institute for Sustainable Development (IISD), Oil Change International (OCI), and Friends of the Earth U.S. gives an update on the CETP, including who kept their commitments – and who didn’t.  

The results of the report make it clear that this approach works. In 2024 alone, the agreement has driven a nearly 78% decline in international public fossil fuel financing among CETP members. That represents between $11 billion and $16 billion being shifted away from fossil fuels. The authors also saw significant changes in energy-related policies in 10 of the 17 major, high-income members, aligning themselves entirely with the pledge.  

This global shift reflects the immense power of coordinated international collaboration in driving climate action. By supporting the CETP and working with our partners, we have held countries and major financers accountable for the impacts of their investments and in some cases, driven them to redirect those funds entirely. We have also helped set a new standard for countries, shining a spotlight on countries that have failed to act.  

Despite this, some members failed to act or doubled down on financing fossil fuels. This includes Germany, Italy, Switzerland and the U.S. In total, they have increased investment in fossil fuels by about $10.9 billion since signing the pledge. We will continue putting pressure on these countries, as well as export credit agencies more broadly, which represent 72% of the remaining fossil fuel financing, to transition out of these unsustainable investments.   

Successfully reducing fossil fuel financing doesn’t mean our work is done. Less than one-fifth of the CETP member funds have been redirected from financing fossil fuels to financing clean energy, a critical piece of the pledge. This report outlines specific actions members can take to reaffirm their commitment, including developing a plan for international investment in clean energy and adopting policies that support clean energy development in their home governments.  

This activism is at the heart of the success seen here, illustrating the force it can be in driving climate action and energy reform. We will continue holding CETP members to their promises and pressuring both the countries and institutions to stop propping up the fossil fuel industry.