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Global Fossil Fuel Funding Falls After Clean Energy Agreement

Environmental Sustainability

Global Fossil Fuel Funding Drops - BusinessHonor

Business Honor
30 September, 2025

Clean energy deal cuts fossil finance, but experts warn more renewable investment is urgently needed.

According to a new research issued this week, public funding for foreign fossil fuel projects has decreased by as much as 78% since 35 nations joined a worldwide commitment to encourage clean energy. The Clean Energy Transition Partnership was created during the United Nations climate discussions in 2021 with the goal of unclear public funding for foreign coal, oil, and gas by the end of 2022.

However, the funding for fossil fuel projects fell from $11.3 billion to $16.3 billion between 2023 and 2024 compared to 2019 to 2021 levels. This was the statistics according to the analysis, which was published by the International Institute for Sustainable Development in teamwork with the non-governmental organizations Oil Change International and the Friends of the Earth in the U.S.

Despite the decline, during the same time period, nations like the US, Germany, and Switzerland together approved $10.9 billion in new investment for fossil fuels. The Environmental organizations are worried that governments are breaking their pledges as a result of this. The research also shows that investment for renewable energy has not increased at the same rate as funding for fossil fuels.

The global attempts to meet climate objectives and change to renewable energy may be slowed back by this imbalance. The international climate cooperation has become more challenging due to trade issues, geopolitical conflicts, and the U.S. pulling out of the pact. In order to secure a sustainable future, they are calling on international leaders to fully transition public funding from fossil fuels to clean energy and to uphold their climate pledges.