Question

To ask the President of COP26, what progress has been made (a) at and (b) since COP26 on encouraging other (i) countries, (ii) public and private financial institutions and (iii) multilateral development banks to help shift international support from fossil fuels to clean energy.

On Energy Day at COP26, the UK announced a joint statement to end international public support for the unabated fossil fuel energy sector by 2022 and prioritise support for the clean energy transition. This has been signed by an ambitious group of 34 countries and 5 public finance institutions, from both developed and developing countries. Collectively, this could move an estimated $24bn a year in public support out of fossil fuels and into the clean energy transition. The initial launch of this statement has set the level of ambition and created the political landscape required to secure similar commitments this year and beyond. This initiative remains a clear priority for the UK Presidency. We intend to work with the signatories to meet the commitments of the joint statement, as well as to continue to expand the signatory base throughout 2022.

A key focus will be securing support from additional financiers of international fossil fuels and influencing multinational fora to continue to raise ambition on this agenda. In relation to private financial institutions, over 450 institutions, responsible for over $130 trillion of private finance assets, committed to science-based, robust net zero targets through the Glasgow Financial Alliance for Net Zero (GFANZ), within the UN’s Race to Zero. Firms have committed to come forward with 2025 or 2030 decarbonisation targets and over 90 asset managers or asset owners have already set targets for 2025 or 2030. These commitments will help shift the global financial system towards greener investments.