Finland joins a growing group of countries that restrict international oil and gas financing, so Norway is the only Nordic country that does not do so.

Finland joins a growing group of countries that restrict international oil and gas financing, so Norway is the only Nordic country that does not do so.

At the COP26 summit in November 2021, 39 countries and financial institutions, including Finland, signed the Glasgow Declaration On international public support for the clean energy transition, in which signatories commit to ending direct international public funding of fossil fuels by the end of 2022, except in exceptional circumstances, and to fully prioritize their public funding for the clean energy transition. If all signatories keep their promises honestly, this directly shifts $28 billion a year from fossil fuels to clean energy and help divert even greater public and private funds away from investments in climate-damaging fossil fuels.

Finnvera no longer supports new oil and gas drilling or expansion of existing fields. Support for oil-fired and gas-fired power plants is allowed under certain conditions, including the requirement that these plants meet the 1.5°C global warming limit. In practice, if Finland’s 1.5°C requirement is implemented honestly and in good faith, this should mean that no new guarantees can be given to such projects. The committed emissions of the existing energy infrastructure already jeopardize A 1.5°C warming limit, which means that there is no room for expansion of the fossil fuel energy infrastructure and that some fossil fuel resources must be shut down before the end of their useful lives. The good news is that there are clean alternatives to electricity production using fossil fuels can support security of energy supply and often offer the cheapest option.

Although Finnvera practically covers the entire country’s international public funding for fossil fuel financing in the period 2018-20, in order to comply with the Glasgow declaration, the Finnish government must update its fossil fuel policy for its development finance institution Finnfund, which will expire accordingly. direct financing of fossil fuels also in that facility. Other countries such as the UK, Denmark, Sweden and France have already done this.

As a member of the Export Finance for Future (E3F) initiative, Finland should also use its diplomatic capital to ensure that all other E3F members implement the Glasgow Statement and present their updated policies at the upcoming E3F summit on November 3.

Finland joins the UK, France, Denmark, Sweden and Belgium in publishing a policy to limit fossil fuel funding to meet the COP26 commitment, building momentum ahead of next month’s COP27 UN climate summit in Egypt. Countries that have not yet delivered on their pledge to stop funding fossil fuels include the United States, Canada, Germany, Italy and the Netherlands.

Vera KauppinenCarbon-free Finland campaign expert, said,

“Ending Finnvera’s financing of almost all fossil fuels is a good step forward, and if Finnfund follows suit, it should be the end of Finland’s international financing of fossil fuels. Now Norway must join the Glasgow Statement or risk being left behind by its neighbors.”

Truls GulowsenThe head of Naturvernforbundet (Friends of the Earth Norway), said:

“It’s a shame that Norway is once again the odd one out when it comes to the Nordics and meaningful action to stop the climate crisis. Norway desperately needs to start a fair transition that supports the climate and green jobs, but instead has given the oil industry huge tax breaks that have led to record new projects that absorb resources and workers from other, more sustainable sectors The least Norway can do is to stop funding fossil fuel projects through international public finance and instead use the money to support renewable energy sources and other green industries that can contribute to oil and gas change in the delivery industry and the rest of the economy.”

Adam McGibbonPublic Finance Strategist at Oil Change International said:

“Finland is on its way to fulfilling its commitment to stop international financing of fossil fuels by the end of this year.

As a result, Norway is the only Nordic country that has not yet taken steps to end international public financing of fossil fuels. Norway has been a vocal advocate for climate action and development in international forums – but it is lagging behind its neighbors and risking its reputation by not signing up to the Glasgow pledge.

If the United States, Canada, Great Britain and all the other Nordic countries can transfer their international public funding to completely clean energy, Norway can too. Before COP27, Norway must announce that it joins the Glasgow Declaration and plans to end international public financing of fossil fuels.”

HT

Source: Oil Change International

Source: The Nordic Page

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