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G20 governments must urgently align their export credits with the Paris Agreement

Export Credit Agencies of G20 countries are still providing billions of dollars in support to fossil fuel projects. This aggravates the lock-in of carbon intensive infrastructures and directly contradicts the commitments under the Paris Agreement against climate change.

Achieving the low-carbon and climate resilient transition requires massive reorientation of investment flows, which entails significant changes in the lending and insurance policies of financial institutions. This relates to both increasing funding for low-carbon infrastructures and reducing funding of carbon-intensive infrastructures. Public finance institutions (PFIs) play a powerful role in catalyzing private climate investments, but this catalyst role can manifest itself in both directions, i.e. supporting the low-carbon and climate resilient transition if climate finance is prioritized or slowing it down if financing of carbon intensive infrastructures continues.

 

Read more from our colleague Igor Shishlov, here.