While many governments and public finance institutions have succeeded in cutting international public finance for fossil fuels, with signatories to the Clean Energy Transition Partnership reducing such support by up to 78 % in 2024 to about USD 4.7 billion compared with earlier years, fulfilling commitments to end international public finance for oil, gas, and coal projects.
However, this drop in fossil fuel funding has not been matched by a corresponding rise in investment for clean energy sources, such as wind, solar, and battery technologies. Critics argue that simply cutting financing for fossil fuels is not enough, the money saved needs to be actively redirected into renewable energy to accelerate the energy transition, especially in developing economies where the cost of capital is high and renewable technologies could surpass fossil infrastructure.
Without a rapid scaling up of finance for renewables, clean energy won’t grow fast enough to meet climate goals and developing countries risk being left behind.
For full insights, read the original article as published in the Daily Nation.
