International Alliance Drives a 78% Drop in International Fossil Fuel Finance

International public finance for fossil fuels from 40 signatories of the Clean Energy Transition Partnership (CETP) has fallen by up to 78% (USD 11.3–USD 16.3 billion annually) in 2024 compared with 2019–2021 levels, before the alliance was formed. This showcases how coordinated international action on climate can deliver rapid results. 

Excluding support from the United States, which left CETP in February 2025, the decline is even more pronounced: an up to 81% drop in international public finance for fossil fuels. 

These findings are outlined in a new study, Holding Course, Missing Speed: Protecting Progress on Ending Fossil Fuel Finance and Unlocking Clean Energy Support, released today by the International Institute for Sustainable Development, Oil Change International (OCI), and Friends of the Earth U.S. 

It assesses how far CETP signatories have come, 2 years after their deadline to deliver on the pledge to fully end international public finance for fossil fuels. 

“The dramatic drop in fossil fuel finance among CETP members shows that collective action works. Countries that commit to first-mover initiatives like this can deliver real results quickly.”

Natalie Jones, Senior Policy Advisor, IISD 

The authors found 10 of the 17 high-income members have fully aligned their energy finance policies with the pledge, demonstrating strong climate leadership, but others—including Germany, Italy, Switzerland, and the United States prior to leaving CETP—approved USD 10.9 billion in fossil fuel finance in violation of the commitment. 

Export credit agencies play an outsized role in remaining fossil fuel finance, accounting for USD 4.7 billion, or 72%, of the total. Reforming these institutions is critical for completing the transition away from public fossil fuel support, the report notes.

“CETP has set a new global norm, with billions in international public finance permanently shifting away from fossil fuels.”

Adam McGibbon, Public Finance Campaign Strategist, OCI

 “The more it succeeds, the more isolated the remaining countries outside of it appear. It's time for the remaining laggards to get on board—in particular, the new South Korean government can score an early diplomatic win by joining the initiative, setting a new standard for climate leadership in Asia.”

While the partnership has driven a historic reduction in fossil fuel financing, progress on clean energy finance is far slower. CETP countries increased support for renewable energy by only USD 3.2 billion in 2024 compared with 2019–2021, meaning less than one-fifth of the funds shifted from fossil fuels have been redirected. 

“The next challenge is ensuring clean energy finance keeps pace,” said Kate DeAngelis, Economic Policy Deputy Director at Friends of the Earth U.S.

“Without rapid scaling of support for renewable projects, especially in emerging and developing economies, the full potential of the CETP will remain untapped.”

 

To ensure progress across the board, the report calls on CETP members to: strengthen implementation and oversight of fossil fuel finance restrictions; commit to a collective clean energy finance target of at least USD 42 billion annually by 2026; develop whole-of-government strategies to deliver public clean energy finance on fair terms that support a just transition; and align domestic policy with international commitments by ending subsidies and approvals for new oil and gas projects at home.

Launched at the 26th UN Climate Change Conference in Glasgow in November 2021, the CETP includes 40 signatories—35 countries and five public finance institutions—who pledged to end fossil fuel finance by the end of 2022 and fully prioritize clean energy instead, covering support through export credit agencies, development finance institutions, and official development assistance.

ENDS

Notes to Editors

The data from this report is now available from the Public Finance for Energy Database, a free database tracking international public finance flows that has also been updated with FY2023/24 data to coincide with the launch of this report: www.energyfinance.org.

Full quotes

“The CETP has set a new global norm, with billions in international public finance permanently shifting away from fossil fuels. The more the CETP succeeds, the more isolated the remaining countries outside of it appear. It's time for the remaining laggards to get on board—in particular, the new South Korean government can score an early diplomatic win by joining the initiative, setting a new standard for climate leadership in Asia.”

– Adam McGibbon, Public Finance Campaign Strategist, OCI

“The dramatic drop in fossil fuel finance among CETP members shows that collective action works. Countries that commit to first-mover initiatives like this can deliver real results quickly.”

– Natalie Jones, Senior Policy Advisor, IISD

“The next challenge is ensuring clean energy finance keeps pace. Without rapid scaling of support for renewable projects, especially in emerging and developing economies, the full potential of the CETP will remain untapped.”

– Kate DeAngelis, International Finance Deputy Director, Friends of the Earth U.S.

Media Contacts

Aia Brnic, Communications Manager, IISD: [email protected]

Juliah Kibochi, Public Finance Communications Campaigner, OCI: [email protected]  

About Oil Change International

Oil Change International is a research, communication, and advocacy organization focused on exposing the true costs of fossil fuels and facilitating the coming transition towards clean energy.

About Friends of the Earth U.S.

Friends of the Earth United States fights to protect the environment and create a healthy and just world. We speak truth to power and expose those who endanger people and the planet. Our campaigns work to hold politicians accountable and transform our economic systems.