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Major global economies have allocated more than $ 189 billion in pandemic recovery funds in support of fossil fuels, despite government commitments to “make it greener” and reduce carbon emissions.
More than half of the $ 372 billion donated by G7 countries to energy-producing and energy-consuming activities from January 2020 to March this year went to coal, oil and gas, according to Tearfund research, a charitable development organization, supported by two independent think tanks.
Most of the money was delivered “without ropes” without companies receiving help to reduce their carbon footprint.
“The post-Covid economic recovery is a great opportunity to accelerate the transition to a green economy,” said Rich Gower, senior partner at Tearfund. “At the moment, the G7 is not taking advantage of this opportunity.”
The pandemic lifelines highlighted in the report are included the German government’s € 9 billion bailout of Lufthansa and $ 10 billion in US government support at airports.
About $ 147 billion was earmarked for clean energy projects, such as a tax incentive in Italy to encourage people to make their homes more energy efficient.
G7 countries account for about a quarter of global carbon emissions, although they only account for about 10% of the world’s population.
Governments have raised their ecological commitments this year ahead of the UN conference on climate change, known as COP26, to be held in Glasgow in November. More ambitious emission reduction plans have joined promises to inject money into the development of new green industries and jobs.
In May, G7 countries promised to stop all new funding for coal projects abroad later this year and make “accelerated efforts” to limit global warming to 1.5 ° C relative to pre-industrial times.
However, Tearfund’s research found that much of the recovery spending so far disagreed with plans to adopt cleaner energy sources.
In a separate report released Wednesday, the International Energy Agency said there was an increase in approvals for coal-fired power plants by 2020, driven by projects in China and some other Asian countries.
Investment in the oil and gas industry is expected to increase by about 8% this year, but remain below pre-crisis levels, the IEA added.
“Governments need to go beyond committing to reducing emissions and taking concrete steps to accelerate investments in market-ready clean energy solutions and promote innovation in early-stage technologies,” said Fatih Birol, Director IEA executive.
According to the Tearfund report, the governments of Australia, India, Korea and South Africa, invited to the G7 summit, have supported the expansion of coal production, either financially or through political measures. since January 2020.
Researchers recommended that the G7 adopt a “do no harm” principle to all spending, which should include attaching “green ropes” to any support for fossil-fuel-intensive sectors and end public money. for the production of coal, oil and gas.
The G7 should also use its influence to urge development banks to align their activities with limiting global warming to 1.5C, according to the report.
“Every penny matters,” Gower said. Spending on gross energy today is “perpetuating fossil fuels in the future.”
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