World’s biggest economies pumping billions into fossil fuels in poor nations

G20 countries spent $142bn in three years to expand operations despite a G7 pledge to stop doing so, study finds. The world’s biggest economies have continued to finance the expansion of fossil fuels in poor countries to the tune of billions of dollars, despite their commitments on the climate.

The G20 group of developed and developing economies, and the multilateral development banks they fund, put $142bn (£112bn) into fossil fuel developments overseas from 2020 to 2022, according to estimates compiled by the campaigning groups Oil Change International (OCI) and Friends of the Earth US.

Canada, Japan and South Korea were the biggest sources of such finance in the three years studied, and gas received more funding than either coal or oil.

The G7 group of biggest economies, to which Japan and Canada belong, pledged in 2022 to halt overseas funding of fossil fuels. But while funding for coal has rapidly diminished, finance for oil and gas projects has continued at a strong pace.