Between 2023 and 2025, public financing for renewable projects averaged at least $52.7 billion annually, outpacing the $36.3 billion allocated to fossil fuels. While multilateral development banks have largely driven this shift, G20 nations continue to prioritize traditional energy sources through their domestic export and development agencies. Research from Oil Change International and Friends of the Earth US highlights that Canada, Japan, Italy, and the United States are responsible for roughly 75% of fossil fuel financing within the G20.
Global Clean Energy Funding Overtakes Fossil Fuels, Yet Laggards Persist
For the first time on record, international public financial institutions are directing more capital toward clean energy than fossil fuels. Despite this milestone, a new report reveals that wealthy G20 nations remain deeply committed to oil, gas, and coal, effectively stalling the global transition required to mitigate catastrophic climate change.
Despite international pledges to phase out such support, these nations continue to bankroll high-carbon projects. The United States, in particular, demonstrated a sharp divergence in 2025, providing nearly $8 billion for fossil fuel ventures compared to a mere $2.5 million for clean energy. This trend extends to the geographical distribution of funds; less than 2% of clean energy financing reaches low-income countries, with nearly half directed toward the world’s wealthiest economies. Experts warn that without a fundamental redirection of public finance, the global community will fail to limit warming to 1.5°C, leaving vulnerable regions to face escalating climate disasters.
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