![Burning Billions: Record Public Money for Fossil Fuels Impeding Climate Action digital story landing page.](/sites/default/files/styles/featured_box_portrait_mobile/public/2023-11/burning-billions-record-fossil-fuels-support-2022.jpg?h=81630ad8&itok=H59QIJOF)
Burning Billions: Record public money for fossil fuels impeding climate action
This briefing provides the latest data on global public financial flows to fossil fuels and clean energy in advance of UN Climate Change Conference COP 28. The first four sections focus on government support for fossil fuels through subsidies, investments by state-owned enterprises, international lending from public financial institutions, and under-taxation. The final two sections summarize current data on renewable energy support and investment. Each section contains recommendations for parties to the United Nations Framework Convention on Climate Change convening at COP 28.
-
In 2022, public financial support for fossil fuels exceeded USD 1.7 trillion globally—a record high.
-
Fossil fuel subsidies in 2022 reached a record high of USD 1.3 trillion.
-
The G7 provided twice international public financing for fossil fuels (USD 20 billion) than for clean energy (USD 10 billion) in 2022.
Governments globally have made bold commitments to address climate change, yet they continue to pour billions of dollars every year into the production and consumption of fossil fuels, the single biggest contributor to the climate crisis. In 2022, public financial support for fossil fuels, in the form of subsidies, investments by state-owned enterprises (SOEs), and lending from public financial institutions, exceeded USD 1.7 trillion globally—a record high.
Under the Paris Agreement, concluded at the 21st United Nations Climate Change Conference (COP 21) in 2015, parties pledged to make "finance flows consistent with a pathway toward low GHG emissions and climate-resilient development" (Article 2.1(c)). At COP 26 in 2021, they promised to accelerate "efforts towards the phasedown of unabated coal power and phase-out of inefficient fossil fuel subsidies."
These commitments have not been achieved. In fact, the data presented in this briefing demonstrates that the gap between commitments and implementation on public financial support has become a yawning chasm.
Parties to the United Nations Framework Convention on Climate Change convening at COP 28 need to commit to phasing out all production and consumption of fossil fuels, set a deadline to shift all public financial flows from fossil fuels to more productive uses, and put in place measures that ensure fossil-dependent communities and energy consumers are supported in a just transition to clean energy.
You might also be interested in
Global Dialogue on Border Carbon Adjustments: The case of Brazil
This report consolidates, analyzes, and presents the views and perspectives of stakeholders from Brazil on border carbon adjustment (BCA) schemes to contribute to the global debate on BCA good practices.
Border Carbon Adjustments: Trinidad and Tobago country report
This report consolidates, analyzes, and presents views and perspectives of stakeholders from Trinidad and Tobago on border carbon adjustment (BCA) schemes to contribute to the global debate on BCA good practices.
The Indonesia Cooking Diaries Study
This study evaluates the feasibility and implications of switching from cooking with LPG to induction stoves in Indonesian households.
Report Calls on Fossil Fuel Producers to Map “Transition Away” in NDCs
With governments due to submit the next generation of NDCs in 2025 a new report identifies five elements countries should include to reflect the outcome of the global stocktake.