Canada under Pressure to MEDIA En - d International Public BACKGROUNDER

Why is the Glasgow Statement Important? The Glasgow Statement on International Public Support for the Clean Energy Transition is the first multilateral commitment to address public finance for oil and gas.1 Currently, G20 trade and development finance institutions provide at least 64 billion CAD a year in support for fossil fuels.2 The Glasgow Statement signatories’ alone account for 38 billion a. [...] When Canada signed on to the Glasgow Statement last November, the government committed to “develop policy direction that will define the scope of this policy.”5 Canada is lagging behind other countries in implementing its pledge to shift its public finance out of fossil fuels and into clean energy. [...] EDC has suggested they are already in compliance with the Glasgow Statement as they will end “new direct financing to international fossil fuel companies and projects by the end of 2022,6” but this will leave out much of Canada’s international fossil fuel support, which flows to domestic companies involved in international fossil fuel trade and operations. [...] What to watch out for: Loopholes that could undermine the new policy 1) A weak definition of “international” Canada’s policy risks using a narrow definition of what constitutes ‘international’ finance to only end fossil fuel finance to international companies operating abroad, but continue to allow finance to domestic companies operating abroad. [...] Efforts to end international public financial support for fossil fuels need to be matched by efforts to greatly increase support for clean energy to enable a globally just energy transition.