Report Shows Startling Rise in Support for Fossil Fuels Amid Global Climate Crisis
Foreign aid for fossil fuel projects surged dramatically over the past year, according to a recent report from the Clean Air Fund, a non-profit organisation focused on reducing air pollution. The funding jumped from $1.2 billion in 2021 to a staggering $5.4 billion in 2022, prompting alarm from climate advocates and experts alike.
“This shocking increase in aid funding to fossil fuels is a wake-up call,” said Jane Burston, CEO of the Clean Air Fund, who warned that nations could not continue on the current path of supporting polluting energy sources at the expense of both global health and climate stability.
Despite commitments made by the international community to cut emissions and transition to cleaner energy, the report’s findings highlight a concerning trend: billions are still being funneled into fossil fuel projects, with clean air initiatives receiving only a fraction of that support.
Clean Energy Funding Lags Behind as Emissions Rise
In stark contrast to the massive increase in fossil fuel aid, funding for projects aimed at improving air quality remains negligible. According to the Clean Air Fund’s findings, just 1% of foreign aid is allocated to projects that address outdoor air pollution, which kills around 4 million people each year.
“Tackling air pollution is essential – not only for protecting our climate but for safeguarding public health,” said Burston. “The stakes couldn’t be higher.”
This discrepancy between the scale of investment in fossil fuels versus clean air and renewable energy efforts highlights a critical challenge for global climate policy. With major international agreements in place, such as the Paris Agreement and various G7 and G20 pledges to phase out fossil fuel subsidies, the new data suggest that these commitments are far from being met.
G20 Under Pressure as COP30 Approaches
The report’s revelations come at a pivotal moment, with the G20 nations under pressure to act. Brazil, which currently holds the G20 presidency, will host the upcoming COP30 climate summit in 2025, where discussions on climate finance and emissions reduction are expected to take centre stage.
Adalberto Maluf, Brazil’s national secretary of the urban environment and environmental quality, expressed disappointment at the findings, saying, “Even as countries pledge to reduce their emissions, increase their climate change ambitions, and transition away from fossil fuels, the figures tell a different story. It doesn’t have to be this way.”
Maluf emphasised that while international public funding is intended to help nations adapt to the challenges of climate change, it often fails to reach the communities and regions most in need. “The scale of the challenge is enormous, and the current level of funding simply doesn’t match that.”
Who Are the Major Players Behind Fossil Fuel Aid?
The report also named the key financial backers of fossil fuel projects over the last five years. Between 2018 and 2022, the top funders included 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 private sector arm of the World Bank).
While some of these funds went towards projects in sectors where renewable energy is not yet a feasible option, such as cement and fertiliser production, a significant portion still supports traditional energy projects that could be powered by cleaner, renewable alternatives.
The International Energy Agency (IEA) pointed out that one of the major hurdles in the transition to clean energy is the high cost of capital for renewable projects in poorer countries. In fact, the cost of financing renewable energy in developing nations is often more than double that in wealthier countries, resulting in a continued reliance on fossil fuels.
Calls for Action Ahead of November Climate Summit
As the world prepares for a major climate summit in Azerbaijan this November, where new financial promises are expected to be made, activists are calling for urgent reforms to how foreign aid is allocated.
The Clean Air Fund’s report has put a spotlight on the disparity between the global community’s climate ambitions and the reality of its financial commitments. The organisation has called on negotiators at the summit to prioritise both air quality and climate action.
“It’s clear that the world cannot continue to prop up polluting practices while neglecting clean air and climate stability,” said Burston. “We need to see a fundamental shift in how funds are allocated, with far more emphasis on clean energy and air quality projects.”
Global Climate Challenges Demand Urgent Financial Shift
As fires, floods, and other climate-related disasters continue to increase in frequency and severity, the misallocation of funds to fossil fuels represents a significant barrier to progress. Experts warn that without a major shift in the direction of financial support, the world risks locking itself into a future of worsening climate instability.
While developed nations like those in the G20 and G7 have made lofty pledges to phase out inefficient fossil fuel subsidies, the rapid rise in fossil fuel aid funding shows that global leaders still have much work to do in aligning their financial policies with their climate goals.
For many, this report is a clear call to action. As Burston concluded, “We cannot afford to delay any longer. Tackling air pollution and transitioning to clean energy is not only essential for the health of the planet but also for the wellbeing of future generations.”
