Friends of the Earth USA

11/21/2024 | Press release | Distributed by Public on 11/21/2024 12:36

U.S. Misses the Mark on Fossil Fuel Finance Agreement

U.S. Misses the Mark on Fossil Fuel Finance Agreement

November 21, 2024

WASHINGTON - Today at the conclusion of the OECD Export Credit Group negotiations, participating nations failed to reach an agreement on fossil fuel finance, despite scientists' repeated calls for urgent climate action. While no formal conclusion has been announced from the talks, the United States appears to have failed to secure an agreement.

The proposal has already been championed by the European Union, UK, Canada, Norway and most recently, Australia. It would have potentially restricted financing for the entire fossil fuel value chain. The U.S. serves a critical role in OECD negotiations and has so far failed to agree to this proposal.

Up to $40 billion per year could be shifted away from fossil fuels to renewable energy projects. This would have paved the way for the agreement to be presented as part of a climate finance package at COP29. Unlike the Paris Agreement, it would have been difficult for the Trump Administration to remove itself from just one piece of the arrangement.

While the U.S. and South Korea indicated support for the proposal, no formal agreement was finalized at the conclusion of the OECD talks, which ended on November 21. But there is still an opportunity for additional talks to take place before the end of the year.

Kate DeAngelis, Deputy Director for Economic Policy at Friends of the Earth, said this:

The U.S. has again missed the mark, letting a historic opportunity to lessen global carbon emissions slip through its fingers. This is a missed opportunity to cement Biden's climate legacy. For a meaningful fossil fuel finance agreement to happen, the U.S. must get it across the finish line.

Contact: Shaye Skiff, Friends of the Earth, [email protected]

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