Germany, France, the UK and four other European nations will stop government export guarantees for fossil fuel projects
According to French Finance Minister Bruno Le Maire, the commitments take effect as early as Wednesday 14 April.
Coal and oil and gas infrastructure has traditionally accounted for a significant share of the portfolios of many countries’ public export finance agencies, which support exports through public financial guarantees and overseas loss insurance.
The initiative was also supported by Spain, the Netherlands, Denmark and Sweden. However, only three countries – the UK, France and Sweden – have so far outlined plans to end export guarantees for the fossil fuel sector. The others have not yet decided how quickly they will end their support.
“We are fully committed to ending the use of all export guarantees financing fossil fuels, taking into account the industrial characteristics of each country and their impact on jobs”, – Le Maire said.
He said he hoped that US President Joe Biden’s administration would also join the group, which together accounted for 40% of export finance for Organisation for Economic Co-operation and Development countries.
The minister said European countries would also pledge to support environmentally friendly projects.