By Andressa Lima (CFC-GS/UFPA)
Less than two weeks before COP31, scheduled to take place from November 9 to 20, 2026, in Antalya, Türkiye, a report published by the International Institute for Sustainable Development (IISD), in partnership with Oil Change International and Friends of the Earth US, assessed progress in implementing the commitments of the Clean Energy Transition Partnership (CETP). Released in October 2026, the study indicates that signatories have significantly reduced international public financing for fossil fuels, but that the increase in support for clean energy has not yet matched the scale of these cuts.
The CETP was established at COP26 in Glasgow in 2021 and currently brings together 40 countries and institutions, including Canada, the United Kingdom, Norway, Australia, and several European Union members. Participants committed to ending direct international public financing for unabated fossil fuels within one year of joining and to prioritizing clean energy. This commitment covers development finance institutions, export credit agencies, and multilateral banks.
In 2025, CETP members provided US$3.3 billion in financing for fossil fuel projects, representing a decline of 72% to 80% compared with the 2019–2021 annual average, equivalent to a reduction of US$8.5 billion to US$13.2 billion. The range reflects a lack of transparency in Canada’s data, as its export credit agency does not clearly distinguish between domestic and international financing in the period preceding the commitment. As reported by Exame, Adam McGibbon of Oil Change International stated that the CETP’s implementation record places it among the most successful climate coalitions. Regarding the policies adopted, 11 of the 16 high-income signatories, along with the European Investment Bank, have established rules fully aligned with the commitment, while Belgium, Germany, and the Netherlands maintain restrictions that do not yet fully meet its requirements.
Implementation, however, remains uneven. Since the end of 2022, the implementation deadline, Italy has provided US$6 billion in financing for fossil fuel projects, followed by Germany with US$2.5 billion and Switzerland with US$1.6 billion. Export credit agencies accounted for 64% of CETP members’ fossil fuel financing in 2025, leading the report’s authors to identify them as a priority for further restrictions. The report also notes that Germany opened a consultation on a proposal to ease its rules on this issue.
Regarding clean energy, financing from CETP signatories increased by 28% compared with the 2019–2021 annual average, an additional US$5.6 billion. This increase represents only 42% of the reduction recorded in fossil fuel financing. Over the same period, G20 countries outside the coalition increased their clean energy financing by 36%, excluding multilateral banks. This leads the authors to question why CETP signatories, despite their commitment to prioritizing clean energy, have recorded slower growth. Beyond the volume of resources, the report highlights inequalities in their distribution: in 2025, 71% of CETP members’ clean energy financing went to advanced economies, with Poland, Germany, France, Italy, and the United Kingdom among the main recipients, while only 24% was directed to emerging and developing economies. In these countries, particularly emerging markets outside China, the cost of capital for renewable energy projects tends to be higher. Against this backdrop, the report recommends expanding financing on fair terms, avoiding additional debt burdens, and prioritizing predictable public funding and a greater share of grants.
The United States withdrew from the CETP in January 2025, although it remains bound by a similar commitment made within the G7. In fiscal year 2025, the US Export-Import Bank provided approximately US$8 billion in financing for fossil fuel projects, including US$4.7 billion for liquefied natural gas in Mozambique, while clean energy financing amounted to just US$117.5 million. According to Exame, Kate DeAngelis of Friends of the Earth US called on the US Congress to use the bank’s reauthorization process, with its current authorization set to expire in December 2026, to establish restrictions on financing fossil fuel projects.
The issue comes to COP31 at a time when climate finance and the energy transition are among the conference’s priorities, under the Turkish-Australian presidency. The presidency has also introduced the “35 by 35” initiative, which aims to increase electricity’s share of global final energy consumption to 35% by 2035. The climate impact of this target depends on expanding low-emission energy sources, electricity grids, and storage systems, areas in which public financing plays an important role.
Among the report’s recommendations are maintaining cuts to fossil fuel financing, closing policy loopholes, bringing major financiers such as South Korea, Japan, and China into the partnership, and eliminating domestic fossil fuel subsidies. The study also emphasizes the need to expand clean energy financing on fair terms, particularly for emerging and developing economies. In this context, the challenge is to ensure that progress in reducing fossil fuel financing is accompanied by a meaningful increase in resources for clean energy, especially in countries that still face difficulties financing the energy transition.
References
COP31 PRESIDENCY. COP31 Presidency launches 35-by-35 Pledge and Antalya AI Pledge in New York. September 21, 2026. Available at: https://cop31.tr/news-detail/cop31-presidency-launches-35-by-35-and-antalya-ai-pledges. Accessed: November 3, 2026.
JONES, N. et al. Down but not out: deep cuts to fossil fuel finance, unfinished business on clean energy. Winnipeg: International Institute for Sustainable Development, October 2026.
SCHUCK, S. Às vésperas da COP31, países cortam em até 80% financiamento público a combustíveis fósseis. Exame, October 27, 2026. Available at: https://exame.com/esg/as-vesperas-da-cop31-paises-cortam-em-ate-80-financiamento-publico-a-combustiveis-fosseis/. Accessed: November 3, 2026.
