Statement: CETP signatories must stick to their commitment to fully prioritize international public finance for clean energy
One year into the implementation of the Clean Energy Transition Partnership (CETP), research shows that signatories have not yet fully shifted their financing into clean energy. On Energy Day at COP 28, a group of civil society organizations have released a statement calling on CETP signatories to stick to their commitment to prioritize financing for the clean energy transition.
Signatories to the Clean Energy Transition Partnership (CETP) committed to ending new direct public support for the international unabated fossil fuel energy sector by the end of 2022, and instead prioritize their support fully toward the clean energy transition.
However, recent IISD research reveals that while signatories to the CETP have made significant progress in cutting international public finance for fossil fuels, most countries and institutions have not yet matched these cuts with equal increases in support for clean energy. In 2022, signatories collectively reduced their fossil fuel financing by USD 6.5 billion compared with the 2019–2021 average, but put only an extra USD 5.2 billion into clean energy—and this increase was due to a small handful of signatories.
In the statement, the civil society organizations emphasize that CETP signatories have a critical opportunity to fulfill their commitment to fully prioritize international public finance for the clean energy transition in a just and equitable way that "does no significant harm."
The signatories of the statement call on the signatories to the CETP to
- set targets to increase the scale and quality of public support for the clean energy transition;
- direct international support to enabling clean energy subsectors, such as off-grid and distributed renewables for energy access, smart grids, and storage infrastructure;
- ensure that all clean energy financing is rights based, community led, gender sensitive, and implemented through democratic and participatory processes;
- update national and institutional policies and strategies to prioritize international support for clean energy in 2024; and
- annually report publicly on progress in increasing international public finance for clean energy.
You might also be interested in
Will International Carbon Markets Finally Deliver?
Can the public international carbon market—detailed in Article 6 of the Paris Agreement—finally deliver for climate and nature?
A Sustainable Asset Valuation of the FAME II policy in India
This report presents the economic valuation of the second phase of the Faster Adoption and Manufacturing of Electric (& Hybrid) Vehicles (FAME II) policy in India and demonstrates its economic, social, and environmental outcomes under different scenarios.
Voluntary initiatives can lead the way to net-zero but must coordinate standards and get more businesses on board
Voluntary standards and initiatives for carbon management can fill a legal void in climate regulations but limited alignment and a lack of uptake from companies are hindering their impact.
As the U.S. reconsiders LNG expansion, it's time Canada does the same
The United States has exercised common sense and paused export permits for new liquified natural gas export facilities in the country, pending an assessment of their climate risk. Canadian governments should similarly take stock of their LNG investments and outlook.