Turning Pledges Into Action

The report analyzes the international public finance (IPF) trends of high-income signatories of the Glasgow Statement, evaluating their fossil fuel exclusion policies and clean energy strategies. It finds that while some robust practices exist, many signatories lack transparent policies, particularly regarding gas exclusions and concrete clean energy targets. The document highlights the potential to shift USD 28 billion annually from fossil fuels to clean energy and uses case studies from Ethiopia and Sri Lanka to demonstrate how this shift can prevent fossil fuel lock-in and support just transitions in low- and middle-income countries.

• The Glasgow Statement has the potential to redirect USD 28 billion in annual international public finance (IPF) from fossil fuels toward clean and just energy transitions. If fully implemented, this would more than double clean energy finance from USD 18 billion to USD 46 billion per year.
• Between 2018 and 2020, Canada was the largest provider of public finance to fossil fuels, contributing USD 11 billion annually, with the majority coming from its export credit agency, Export Development Canada (EDC). Other top providers included the United States (USD 3.1 billion), Italy (USD 2.8 billion), Germany (USD 2.8 billion), and Spain (USD 2.4 billion).
• Export credit agencies (ECAs) are the primary source of fossil fuel support, accounting for over 80% of such finance between 2018 and 2020. However, ECAs generally lag behind development finance institutions (DFIs) in adopting updated, Glasgow-compatible exclusion policies.
• A significant policy gap exists regarding natural gas; many signatories lack stringent gas finance restrictions or include broad exemptions that risk fossil fuel lock-in. The report argues that long-lived gas infrastructure is incompatible with the 1.5°C target.
• Several entities demonstrate good practices with policies compatible with or exceeding the Glasgow Statement, including the Agence Française de Développement, Swedfund, the FMO, the EIB, and the whole-of-government approaches of Denmark and the United Kingdom.
• Most high-income signatories lack transparent, quantified targets and concrete strategies for scaling up clean energy support, which hinders the transition to a just and clean energy system.
• In Ethiopia, international public finance has been dominated by transmission and distribution (T&D) projects, largely funded by China. There is a significant opportunity to shift support toward off-grid, small-scale renewables and household energy access to avoid locking in oil and gas extraction.
• Sri Lanka has received more IPF for fossil fuels (USD 1.65 billion) than for renewables (USD 987 million) between 2013 and 2021, with a heavy reliance on loans. This has contributed to a high debt burden and risks locking the country into gas-fired power, such as the Hambantota Power Station.
• The report recommends that signatories extend their commitments to include indirect support, such as investments through financial intermediaries and policy-based lending at multilateral development banks (MDBs).

APA

International Institute for Sustainable Development (2022). Turning Pledges Into Action. https://www.iisd.org/system/files/2022-06/turning-glasgow-statement-into-action.pdf

Chicago

International Institute for Sustainable Development. Turning Pledges Into Action. 2022. https://www.iisd.org/system/files/2022-06/turning-glasgow-statement-into-action.pdf.

Wikipedia

{{cite report |author=International Institute for Sustainable Development |title=Turning Pledges Into Action |date=June 2022 |url=https://www.iisd.org/system/files/2022-06/turning-glasgow-statement-into-action.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{internationalinstituteforsustainabledevelopment2022turning, author = {{International Institute for Sustainable Development}}, title = {{Turning Pledges Into Action}}, institution = {International Institute for Sustainable Development}, year = {2022}, month = jun, url = {https://www.iisd.org/system/files/2022-06/turning-glasgow-statement-into-action.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }