Reducing Public Finance for Fossil Fuels

The document details the transition of public finance institutions away from fossil fuel investments, highlighting the role of G20 governments and multilateral development banks in implementing restrictions on coal, oil, and gas financing to align with the Paris Agreement.

• Between 2013 and 2015, public finance institutions controlled by G20 governments provided an annual average of USD 72 billion in support for coal, oil, and gas.
• Since 2013, various multilateral development banks (MDBs) and national governments have adopted restrictions on international public financing for coal. These include the World Bank Group, the European Investment Bank, the European Bank for Reconstruction and Development, and governments such as the United States, United Kingdom, and the Netherlands.
• The World Bank Group is the first public finance institution to implement a substantial restriction on financing for upstream oil and gas due to climate change concerns, committing to end such financing after 2019.
• Drivers for these reforms include the desire of public finance institutions to maintain their reputation as thought leaders, the increasing financial risk of stranded assets due to declining coal markets, the need to demonstrate leadership following the 2015 Paris Agreement, and pressure from civil society.
• Despite progress in coal finance restrictions, few institutions have extended similar restrictions to oil and gas. Additionally, there is a risk of backsliding, exemplified by the United States shifting from a leader in coal finance restrictions to promoting new government support for fossil fuels.

APA

International Institute for Sustainable Development (n.d.). Reducing Public Finance for Fossil Fuels. https://www.iisd.org/sites/default/files/publications/stories-g20-multiple-en.pdf

Chicago

International Institute for Sustainable Development. Reducing Public Finance for Fossil Fuels. n.d. https://www.iisd.org/sites/default/files/publications/stories-g20-multiple-en.pdf.

Wikipedia

{{cite report |author=International Institute for Sustainable Development |title=Reducing Public Finance for Fossil Fuels |url=https://www.iisd.org/sites/default/files/publications/stories-g20-multiple-en.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{internationalinstituteforsustainabledevelopmentndreducing, author = {{International Institute for Sustainable Development}}, title = {{Reducing Public Finance for Fossil Fuels}}, institution = {International Institute for Sustainable Development}, url = {https://www.iisd.org/sites/default/files/publications/stories-g20-multiple-en.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }