Today is the day of energy in the COP26 climate summit in Glasgow. In the first half of the energy day, almost 20 countries including the United States, Canada are committed to stopping financing fossil fuel abroad projects by end of this year. Turn that investment on clean energy instead.
1. Thursday session committed to ending the fossil fuel financing at the end of 2022.
2. United States, United Kingdom, European Union Investment Bank signed up.
3. China and Japan giant fossil funders missing
4. Major emitters such as China and the United States still needed to do more to reduce domestic fossil fuel projects.
Campaigners called the commitment a ‘histrionic’ transition by blocking the fund on fossil fuel. But Asian countries that were the major financer for fossil fuel did not join, which seemed to be a loophole.
By bringing together richer donor countries with poorer nations that receive international financial support, the COP26 deal aims to build a consensus among nations to stop backing polluting projects and instead support clean energy both to curb emissions and to avoid building stranded assets.
Governments and financial institutions are facing increased pressure to stop funding coal, oil, and gas projects responsible for producing the greenhouse gas emissions that are driving climate change, both at home and abroad.
China, Japan, and South Korea, which together composes 50 percent of public funds to the fossil fuel projects, did not join the pledge. That seemed to be loopholes. But proponent still said that sends a positive message.
Stopping the flow of funds to fossil fuel is significant to reach the World’s climate goals, Activists say. In May, the International Energy Agency published a road map to zeroing out carbon emission by 2050. According to that plan, there will no new development of fossil fuel after that year.
Enormous investment in green technologies is needed for the task. Bernstein analysts estimate the required low-carbon investments at roughly $2-4 trillion per year until 2050.