Elizabeth Bast is the executive director of the advocacy group Oil Change International.
As world leaders gather in Baku to negotiate global climate finance, a last-chance opportunity for the Biden administration to cement a global win on climate is emerging.
This week, OECD governments are in Paris negotiating an agreement that could put an end to $41 billion in annual oil and gas export finance – and crucially, this deal would be immune to political reversals, even under the future Trump administration.
This would be an essential stepping stone towards helping unblock wider discussions on the trillions in grant-based climate finance rich countries owe to the Global South.
The proposed OECD agreement would be particularly powerful because of its binding nature. It could only be undone if all negotiating countries agreed to reverse course – making it effectively “Trump-proof”.
Make-or-break moment
For Biden, as outgoing President, this represents a final opportunity to fulfill his 2021 executive order promising to end international fossil fuel finance. The majority of OECD countries, including the EU, UK, Canada, Norway, New Zealand, and Australia, have already been championing a proposal to end oil and gas export finance and are ready to reach an agreement.
Biden’s actions this week will make-or-break this progress.
High-level EU officials have already reached out to the Administration asking that they make the final call to agree so that this proposal can cross the finish line. However, the power of the Biden administration is now critically needed to get key laggards, including South Korea and Turkey, over the line.
We’ve seen the power of US multilateral leadership on export finance work before. In 2015, the Obama administration successfully championed a policy at the OECD to end coal-fired power financing – a commitment the first Trump administration couldn’t undo.
Now, Biden has the chance to replicate this success with oil and gas, creating another permanent safeguard for climate progress.
Push to get public money out of fossil fuels
This potential agreement builds on an encouraging shift in international energy finance.
The Clean Energy Transition Partnership (CETP), launched at COP26 in Glasgow, has already demonstrated remarkable success. Its 41 signatories, including major fossil fuel financiers like Canada, Germany, and Norway, committed to ending their international public finance for fossil fuels. And most signatories have followed through, helping reduce international fossil fuel finance by up to two-thirds – approximately $15 billion annually.
Though these sums might seem small, this shift has an outsized impact. Government financial institutions shape energy markets by signaling government priorities.
Public-backed finance, often provided at below-market rates, decreases financial risks for private sector investors and makes projects much more likely to go forward. Indeed, 82% of the LNG buildout in the last decade had public backing from G20 government’s export credit agencies (ECAs).
Indonesian company Pertamina operates an oil refinery that received support from the US export credit agency last year. Photo: Paulus Daniel
The timing is critical: this is the Biden administration’s last chance to keep its international commitments to end international public finance for fossil fuels.
The International Energy Agency’s Net Zero roadmap shows that global electricity systems must be nearly fossil-fuel-free by 2040 to maintain a 50% chance of limiting warming to 1.5°C. No new investments in upstream gas projects or LNG infrastructure can be justified under this scenario.
Step towards an ambitious COP29 deal
This OECD agreement would also help solidify other wins for the COP29 talks in Baku, where countries must commit to delivering substantial climate finance, including support for a just transition away from fossil fuels.
Rich countries owe trillions in grant-based finance to the Global South for climate action. Developed countries claim that they do not have the money and that large sums of private finance leveraged through small amounts of public finance must cover mitigation finance needs, including for an energy transition.
But this makes Global South countries pay for a crisis they did not cause. The track record of this approach shows it fails to leverage the needed sums, deepens unsustainable debts and does not reach the countries and sectors that are most in need, such as public transit and transition support for fossil fuel-dependent workers and communities. This underscores grant-based finance is needed not just for loss and damage and adaptation, but also for a just energy transition.
Why the international community should back Colombia’s post-fossil fuel plan
The world has plenty of money to pay for the climate action that is urgently needed for a livable planet. Just the 10 richest individuals have a combined wealth of over $1 trillion dollars.
Analysis by Oil Change International (OCI) shows that by ending fossil fuel handouts – including through reaching a deal at the OECD – making polluters pay and changing unfair global finance rules, countries can mobilize well over $5 trillion for climate action at home and abroad, as well as other public policies.
The opportunities to build a world with cleaner air, good quality jobs, comfortable housing, affordable energy bills and empowered communities are up for grabs.
According to the IPCC a fossil fuel phase-out is technically feasible and relatively low in cost. Solar and wind energy are already more affordable than fossil fuel alternatives in most parts of the world. They do not introduce further volatility through increased climate damages or fiscal instability and create a more secure energy system in a volatile age where fossil fuels are often controlled by dictators and autocrats.
The next days bring critical opportunities. Right now in Paris, Biden must support an OECD oil and gas export finance ban. In Baku, countries must adopt an ambitious new climate finance target. It’s time for governments to stop defending fossil fuel interests and fulfill their duty to protect people and the planet.
The post How Biden can score a $41 billion Trump-proof win for climate action appeared first on Climate Home News.
How Biden can score a $41-billion Trump-proof win for climate action
Climate Change
Big fishing nations secure last-minute seat to write rules on deep sea conservation
As a treaty to protect the High Seas entered into force this month with backing from more than 80 countries, major fishing nations China, Japan and Brazil secured a last-minute seat at the table to negotiate the procedural rules, funding and other key issues ahead of the treaty’s first COP.
The Biodiversity Beyond National Jurisdiction (BBNJ) pact – known as the High Seas Treaty – was agreed in 2023. It is seen as key to achieving a global goal to protect at least 30% of the planet’s ecosystems by 2030, as it lays the legal foundation for creating international marine protected areas (MPAs) in the deep ocean. The high seas encompass two-thirds of the world’s ocean.
Last September, the treaty reached the key threshold of 60 national ratifications needed for it to enter into force – a number that has kept growing and currently stands at 83. In total, 145 countries have signed the pact, which indicates their intention to ratify it. The treaty formally took effect on January 17.
“In a world of accelerating crises – climate change, biodiversity loss and pollution – the agreement fills a critical governance gap to secure a resilient and productive ocean for all,” UN Secretary-General António Guterres said in a statement.
Julio Cordano, Chile’s director of environment, climate change and oceans, said the treaty is “one of the most important victories of our time”. He added that the Nazca and Salas y Gómez ridge – off the coast of South America in the Pacific – could be one of the first intact biodiversity hotspots to gain protection.
Scientists have warned the ocean is losing its capacity to act as a carbon sink, as emissions and global temperatures rise. Currently, the ocean traps around 90% of the excess planetary heat building up from global warming. Marine protected areas could become a tool to restore “blue carbon sinks”, by boosting carbon absorption in the seafloor and protecting carbon-trapping organisms such as microalgae.
Last-minute ratifications
Countries that have ratified the BBNJ will now be bound by some of its rules, including a key provision requiring countries to carry out environmental impact assessments (EIA) for activities that could have an impact on the deep ocean’s biodiversity, such as fisheries.
Activities that affect the ocean floor, such as deep-sea mining, will still fall under the jurisdiction of the International Seabed Authority (ISA).
Nations are still negotiating the rules of the BBNJ’s other provisions, including creating new MPAs and sharing genetic resources from biodiversity in the deep ocean. They will meet in one last negotiating session in late March, ahead of the treaty’s first COP (conference of the parties) set to take place in late 2026 or early 2027.
China and Japan – which are major fishing nations that operate in deep waters – ratified the BBNJ in December 2025, just as the treaty was about to enter into force. Other top fishing nations on the high seas like South Korea and Spain had already ratified the BBNJ last year.
Power play: Can a defensive Europe stick with decarbonisation in Davos?
Tom Pickerell, ocean programme director at the World Resources Institute (WRI), said that while the last-minute ratifications from China, Japan and Brazil were not required for the treaty’s entry into force, they were about high-seas players ensuring they have a “seat at the table”.
“As major fishing nations and geopolitical powers, these countries recognise that upcoming BBNJ COP negotiations will shape rules affecting critical commercial sectors – from shipping and fisheries to biotechnology – and influence how governments engage with the treaty going forward,” Pickerell told Climate Home News.
Some major Western countries – including the US, Canada, Germany and the UK – have yet to ratify the treaty and unless they do, they will be left out of drafting its procedural rules. A group of 18 environmental groups urged the UK government to ratify it quickly, saying it would be a “failure of leadership” to miss the BBNJ’s first COP.
Finalising the rules
Countries will meet from March 23 to April 2 for the treaty’s last “preparatory commission” (PrepCom) session in New York, which is set to draft a proposal for the treaty’s procedural rules, among them on funding processes and where the secretariat will be hosted – with current offers coming from China in the city of Xiamen, Chile’s Valparaiso and Brussels in Belgium.
Janine Felson, a diplomat from Belize and co-chair of the “PrepCom”, told journalists in an online briefing “we’re now at a critical stage” because, with the treaty having entered into force, the preparatory commission is “pretty much a definitive moment for the agreement”.
Felson said countries will meet to “tidy up those rules that are necessary for the conference of the parties to convene” and for states to begin implementation. The first COP will adopt the rules of engagement.
She noted there are “some contentious issues” on whether the BBNJ should follow the structure of other international treaties such as the Convention on Biological Diversity (CBD), as well as differing opinions on how prescriptive its procedures should be.
“While there is this tension on how far can we be held to precedent, there is also recognition that this BBNJ agreement has quite a bit to contribute in enhancing global ocean governance,” she added.
The post Big fishing nations secure last-minute seat to write rules on deep sea conservation appeared first on Climate Home News.
Big fishing nations secure last-minute seat to write rules on deep sea conservation
Climate Change
Climate at Davos: Energy security in the geopolitical driving seat
The annual World Economic Forum got underway on Tuesday in the Swiss ski resort of Davos, providing a snowy stage for government and business leaders to opine on international affairs. With attention focused on the latest crisis – a potential US-European trade war over Greenland – climate change has slid down the agenda.
Despite this, a number of panels are addressing issues like electric vehicles, energy security and climate science. Keep up with top takeaways from those discussions and other climate news from Davos in our bulletin, which we’ll update throughout the day.
From oil to electrons – energy security enters a new era
Energy crises spurred by geopolitical tensions are nothing new – remember the 1970s oil shock spurred by the embargo Arab producers slapped on countries that had supported Israel during the Yom Kippur War, leading to rocketing inflation and huge economic pain.
But, a Davos panel on energy security heard, the situation has since changed. Oil now accounts for less than 30% of the world’s energy supply, down from more than 50% in 1973. This shift, combined with a supply glut, means oil is taking more of a back seat, according to International Energy Agency boss Fatih Birol.
Instead, in an “age of electricity” driven by transport and technology, energy diplomacy is more focused on key elements of that supply chain, in the form of critical minerals, natural gas and the security buffer renewables can provide. That requires new thinking, Birol added.
“Energy and geopolitics were always interwoven but I have never ever seen that the energy security risks are so multiplied,” he said. “Energy security, in my view, should be elevated to the level of national security today.”
In this context, he noted how many countries are now seeking to generate their own energy as far as possible, including from nuclear and renewables, and when doing energy deals, they are considering not only costs but also whether they can rely on partners in the long-term.
In the case of Europe – which saw energy prices jump after sanctions on Russian gas imports in the wake of Moscow’s invasion of Ukraine – energy security rooted in homegrown supply is a top priority, European Commission President Ursula von der Leyen said in Davos on Tuesday.
Outlining the bloc’s “affordable energy action plan” in a keynote speech at the World Economic Forum, she emphasised that Europe is “massively investing in our energy security and independence” with interconnectors and grids based on domestically produced sources of power.
The EU, she said, is trying to promote nuclear and renewables as much as possible “to bring down prices and cut dependencies; to put an end to price volatility, manipulation and supply shocks,” calling for a faster transition to clean energy.
“Because homegrown, reliable, resilient and cheaper energy will drive our economic growth and deliver for Europeans and secure our independence,” she added.
Comment – Power play: Can a defensive Europe stick with decarbonisation in Davos?
AES boss calls for “more technical talk” on supply chains
Earlier, the energy security panel tackled the risks related to supply chains for clean energy and electrification, which are being partly fuelled by rising demand from data centres and electric vehicles.
The minerals and metals that are required for batteries, cables and other components are largely under the control of China, which has invested massively in extracting and processing those materials both at home and overseas. Efforts to boost energy security by breaking dependence on China will continue shaping diplomacy now and in the future, the experts noted.
Copper – a key raw material for the energy transition – is set for a 70% increase in demand over the next 25 years, said Mike Henry, CEO of mining giant BHP, with remaining deposits now harder to exploit. Prices are on an upward trend, and this offers opportunities for Latin America, a region rich in the metal, he added.
At ‘Davos of mining’, Saudi Arabia shapes new narrative on minerals
Andrés Gluski, CEO of AES – which describes itself as “the largest US-based global power company”, generating and selling all kinds of energy to companies – said there is a lack of discussion about supply chains compared with ideological positioning on energy sources.
Instead he called for “more technical talk” about boosting battery storage to smooth out electricity supply and using existing infrastructure “smarter”. While new nuclear technologies such as small modular reactors are promising, it will be at least a decade before they can be deployed effectively, he noted.
In the meantime, with electricity demand rising rapidly, the politicisation of the debate around renewables as an energy source “makes no sense whatsoever”, he added.
The post Climate at Davos: Energy security in the geopolitical driving seat appeared first on Climate Home News.
Climate at Davos: Energy security in the geopolitical driving seat
Climate Change
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