Fossil Fuel Financing Drops Sharply in Global Report
A new report finds public fossil fuel funding has declined by up to 80 percent compared to recent annual averages.
Updated on Oct. 29, 2026 in Energy
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The International Institute for Sustainable Development released a report showing a significant reduction in global fossil fuel financing. The analysis reveals that support for these energy sources has fallen by up to 80 percent relative to 2019-2021 levels.
Why it matters
The findings highlight a major shift in how states within the Clean Energy Transition Partnership are allocating public capital. However, the report cautions that less than half of this divested funding is currently being redirected toward clean energy initiatives.
The study analyzed state energy finance across members of the Clean Energy Transition Partnership, finding an 80% maximum reduction in fossil fuel support. Less than 50% of these divested funds have been moved into clean energy sectors.
The players
International Institute for Sustainable Development
This policy research organization provides evidence-based analysis on sustainable development and environmental governance.
Oil Change International
This research and advocacy organization focuses on the transition from fossil fuels to clean energy.
Friends of the Earth US
This environmental organization works on policy campaigns to promote sustainable global systems and environmental justice.
Clean Energy Transition Partnership
This international collaborative initiative brings together countries committed to phasing out public fossil fuel support.
The details
The Down But Not Out report was produced in collaboration with Oil Change International and Friends of the Earth US. It examines the shifting landscape of global energy finance as nations attempt to transition away from traditional carbon-heavy investments.
Timeline
2019-2021 was the period used for calculating the annual fossil fuel finance averages.
The Big Picture
This report evaluates the financial performance of members within the Clean Energy Transition Partnership. The analysis provides a critical assessment of whether institutional commitments to divest from carbon-heavy energy are successfully driving capital into sustainable alternatives.
A successful redirection of public funds toward renewable energy could accelerate the commercialization of new power technologies and lower energy costs. Conversely, the failure to fully pivot these investments may slow the global development of sustainable power infrastructure.
The takeaway
While public financing for fossil fuels is clearly in decline, the speed and destination of these funds remain critical factors for global climate goals. Investors and citizens should monitor whether diverted capital effectively supports long-term green infrastructure projects.
Further reading
Learn more about the latest developments in Energy.
Source note: This article includes information reported by Edie.
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