International fossil fuel project finance from countries in the Clean Energy Transition Partnership (CETP) dropped by 72-80pc to $3.3bn last year compared with a 2019-21 baseline, but Italy, Germany and Switzerland are still not meeting the goal, according to a report by think-tank the International Institute for Sustainable Development (IISD).
Under the CETP, signed in 2021 on the sidelines of the UN Cop 26 climate summit in Glasgow, 40 countries and jurisdictions pledged to end international public finance for fossil fuels by the end of 2022. The signatories include Canada, Norway, the UK, Germany, Italy, the Netherlands and Denmark. The US left the alliance in February 2025. The commitment covers public finance provided through development finance institutions, export credit agencies and multilateral development banks.
"The CETP is an example of how international agreements with time-bound commitments, combined with ongoing monitoring and accountability efforts, can shift international energy finance away from fossil fuels and toward clean energy, although scaling clean energy financing has been slow," IISD said.
But clean energy finance from the CETP countries in the same period only rose by 28pc to $5.6bn and only 42pc of the funding removed from fossil fuel investments has been going towards clean energy, according to IISD.
Some countries have yet to meet their Cop 26 pledge. Italy has provided $6bn in international fossil fuel finance since the end of 2022, when countries were due to meet their CETP target, while Germany and Switzerland provided $2.5bn and $1.6bn, respectively.
