Ottawa, Ont. – The UK took a groundbreaking step by announcing it will no longer provide financial support for overseas fossil fuel projects. With this move, which supports the global shift to renewable energy, the UK is showing true leadership. It’s clear – momentum on ending public financing for fossil fuels is snowballing, with President Biden and European Union foreign ministers having also made significant promises.
Meanwhile, Canada ranks second worst of the G20 countries for public finance to oil and gas. On a per capita basis, we’re the worst. Despite that shameful claim to fame, the only action we’ve seen from crown corporation Export Development Canada is an embarrassingly weak target to reduce support for carbon-intensive industries from $22 billion to $19 billion.
Continuing to back oil and gas is entirely incompatible with a safe climate and healthy future. The leadership shown by the UK – and commitments made by the US and the European Union – shows clearly that Canada can also shift our public finance away from fossil fuels.
Background information
- Canada’s export credit agency, Export Development Canada, provides on average more than CAD 13 billion annually to oil and gas.
- The UK is the first major economy to move its export credit agency (ECA) out of fossil fuels.
- The UK phase-out of oil, gas, and coal financing applies to international aid funding, trade promotion and export finance provided by the British export agency, UK Export Finance (UKEF). Over the past four years the U.K. has supported $35 billion dollars of British oil and gas exports through trade promotion and export finance.
About ENVIRONMENTAL DEFENCE (www.environmentaldefence.ca): Environmental Defence is a leading Canadian environmental advocacy organization that works with government, industry and individuals to defend clean water, a safe climate and healthy communities
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For more information or to arrange an interview, please contact:
Barbara Hayes, Environmental Defence, bhayes@environmentaldefence.ca
