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illuminem summarizes for you the essential news of the day. Read the full piece on Financial Times or enjoy below:
🗞️ Driving the news: The OECD countries are divided over proposals by the EU and UK to end most export credit agency loans and guarantees for fossil fuel projects, as the US assesses the EU's proposals amidst differing national interests and political pressures
🔭 The context: The debate follows a 2021 agreement to halt support for coal-fired power and comes amid international efforts to align public finance with the Paris agreement goal of limiting global warming to 1.5°C above pre-industrial levels
• Export credit agencies have historically favored fossil fuel projects over renewable ones
🌍 Why it matters for the planet: The continued financial support for fossil fuel projects by export credit agencies contradicts global climate goals
• The International Energy Agency has stated that new oil and gas exploration projects are incompatible with meeting the Paris climate targets
⏭️ What's next: Discussions are to continue, with the US's position crucial amidst concerns over its climate leadership
• Any changes to OECD's export credit policies require a consensus among its 38 member states, highlighting the complexity of achieving unified action against fossil fuel subsidies
💬 One quote: "The US is dragging its feet at a time when it needs to step up to prove its climate leadership, ahead of the polls later this year," (Nina Pušić, export finance climate strategist at Oil Change International)
📈 One stat: Between 2019 and 2021, G20 countries' export credit agencies provided seven times more support for fossil fuel projects than for renewable energy, averaging $33.5bn a year for fossil fuels compared with $4.7bn for clean energy
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