False Solutions Finance Briefing

The briefing criticizes multilateral development banks (MDBs) for continuing to fund large-scale, centralized energy projects that the authors categorize as 'false solutions,' such as nuclear, carbon capture, and fossil gas. It argues these investments undermine equity and delay the transition to sustainable energy. Using case studies from Africa and Asia, the document recommends that MDBs prioritize decentralized renewable energy, reform climate finance frameworks, and ensure the Free, Prior, and Informed Consent of Indigenous peoples.

• Multilateral development banks (MDBs) are accused of a disconnect between their stated alignment with the Paris Agreement and Sustainable Development Goals and their actual investment patterns, which favor large-scale, centralized, and high-risk projects lacking social and environmental protections.
• The document identifies several technologies and mechanisms as 'false solutions' to the climate crisis that distract from people-centered solutions and increase debt and injustice: large hydropower, industrial biofuels, nuclear, carbon capture and storage (CCUS), 'blue' and 'green' hydrogen for export, waste-to-energy, fossil gas, and carbon markets.
• The briefing provides five primary recommendations for MDBs: prioritize decentralized and mixed-scale renewable energy with community ownership, reject false solutions, reform climate finance frameworks, ensure community participation and Free, Prior, and Informed Consent for Indigenous peoples, and improve transparency and safeguards.

APA

Race, M. (2025). False Solutions Finance Briefing. Recourse. https://re-course.org/newsupdates/false-solutions-finance-briefing/

Chicago

Race, Madeleine. False Solutions Finance Briefing. Recourse, 2025. https://re-course.org/newsupdates/false-solutions-finance-briefing/.

Wikipedia

{{cite report |last1=Race |first1=Madeleine |title=False Solutions Finance Briefing |publisher=Recourse |date=13 October 2025 |url=https://re-course.org/newsupdates/false-solutions-finance-briefing/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{race2025false, author = {Race, Madeleine}, title = {{False Solutions Finance Briefing}}, institution = {Recourse}, year = {2025}, month = oct, url = {https://re-course.org/newsupdates/false-solutions-finance-briefing/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }