Climate: OECD worries about resurgence in fossil fuel financing in 2020
The Lavera oil refinery near Marseille (illustrative image).
AFP - CHRISTOPHE SIMON
Text by: RFI Follow
3 min
Despite their responsibility for global warming, fossil fuels continue to be favored.
Their subsidies are indeed on the rise in many countries, warns the OECD.
According to the organization for economic cooperation and development, public support for fossil fuels increased by 5% in 2019.
Publicity
Read more
About 50 countries including members of the OECD and the G20 spent $ 178 billion in 2019 to support fossil fuels, especially oil.
A rebound that seems to be confirmed in 2020, worries the organization. The OECD notes that as part of the post-Covid-19 recovery plans, many governments have provided increased support to fossil energy producers. An average increase of 30% in OECD countries, led by North America.
These subsidies take several forms: tax credits, direct aid or investments in infrastructure.
Another worrying phenomenon is pointed out by the OECD: the tax on carbon released into the atmosphere remains much lower than the real cost of CO2 emissions in many countries.
However, one parameter could reverse the trend in the years to come.
In the United States, the world's largest oil producer,
President Joe Biden
has pledged to end fossil fuel subsidies.
Banks' appetite for fossil fuels
The problem is that the banks' appetite for fossil fuels has not weakened, five years after the commitments made
under the Paris climate agreement.
The 60 largest banks in the world, American, Chinese, English or French globally lent between 2016 and 2020, 3,800 billion dollars to the sector of fossil energies, coal, oil and gas.
In France, a bank like Société Générale, which has a strong presence in Africa, has decided to no longer finance certain sectors. “
We are no longer financing new coal projects in Africa. And the customers who have a significant share of coal, we work with them to ensure that they also enter into all the subjects of energy transition
”, explains Laurent Goutard, head of the Africa, Mediterranean and Overseas region at the General Society.
No more coal therefore for Société Générale.
On the other hand, for gas, the third French bank continues to support the projects of its customers.
As with Total, for example, involved in the enormous Mozambican project.
“
Our vision is to do it in a reasoned and reasonable manner, also taking into account what Africa's needs are.
By 2050, 500 million young Africans will be entering the job market, with colossal energy needs,
”continues Laurent Goutard.
For conservationists, being selective in funding projects will not be enough to save the planet from a climate crisis.
They call on global finance to be clearly aware of this.
Newsletter
Receive all international news directly in your mailbox
I subscribe
Follow all the international news by downloading the RFI application
google-play-badge_FR
Economy
Oil
Weather
Environment