The United States and the European Union are at odds over how far a ban on fossil fuel loans and guarantees would extend and haven’t reached an agreement at the latest round of talks within the
organization of the most developed nations, sources with knowledge of the discussions have told the Financial Times. members, which include the U.S., the EU, Canada, the UK, Japan, and South Korea, among others, have recently held a round of talks in Paris, without reaching any compromise about the extent to ban export credit agencies ECAs from extending or guaranteeing loans for oil, natural gas, and coal projects. More discussions are expected to be held in the summer and the autumn. The EU is proposing that ECAs only support projects that are aligned with a 1.5-degree Celsius scenario. The U.S.
member states are the world’s largest public financiers of fossil fuels, from supporting an average of $33.5 billion per year of public money to coal, oil, and fossil gas projects, according to an analysis by environmental organizations Friends of the Earth and Oil Change International. Moreover, oil and gas currently account for more than 90% of ECA energy finance.