Switzerland breaks major climate promise on taxpayer finance
Switzerland is the first signatory of the Clean Energy Transition Partnership (CETP) to water down its policy to end international public finance for fossil fuels. The country has now also surpassed the United States in providing the most international fossil fuel finance since the end of 2022 deadline passed, providing a total of almost $3.6 billion.
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Nicole Rodel, Oil Change International – nicole@priceofoil.org
Switzerland breaks major climate promise on taxpayer finance
11 July 2024 – Switzerland is the first signatory of the Clean Energy Transition Partnership (CETP) to water down its policy to end international public finance for fossil fuels. The country has now also surpassed the United States in providing the most international fossil fuel finance since the end of 2022 deadline passed, providing a total of almost $3.6 billion.
In March 2023, Swiss Export Risk Insurance (SERV) pledged to end all its fossil fuel finance, with exemptions only where it could be proven that the fossil fuel project was in line with the globally-agreed Paris Agreement goal of keeping global average temperatures under 1.5°C.
However, last month SERV quietly watered down its policy, deleting it and its press release from their website, and replacing it with a new one. Doing a side-by-side comparison, the new policy opens up a loophole for midstream gas, as well as loopholes that render the policy meaningless by allowing SERV to fund any project it deems is in the “Economic, foreign, trade and development policy interests of Switzerland.”
This is the first time a CETP signatory has weakened its policy. All other signatories that have altered policies have made them more ambitious. According to Oil Change International, many countries are adhering to the agreement, including the UK, France, Canada, Sweden, Finland, Denmark and other major historical fossil fuel financiers.
Switzerland has also recently become one of the main violators of the CETP agreement, surpassing even the United States, according to Oil Change International. SERV has approved the most fossil fuel finance of the CETP signatories since the agreement took effect, providing a total of almost USD 3.6 billion for five fossil fuel projects. This includes almost $2.5 billion for one gas power plant in Turkmenistan, which SERV announced funding for last month.
This policy change comes soon after a group of Swiss senior citizen women won a landmark court case at the European Court of Human Rights, who claimed inaction on the climate crisis by their government put them at greater risk of death from heatwaves.
Adam McGibbon, Public Finance Strategist at Oil Change International, said:
“Switzerland has quickly become one of the worst promise breakers of them all. Our home is burning, but Switzerland is adding fuel to the fire with billions in taxpayer finance for fossil fuels, and covertly slashing their policy to allow any project they choose to go ahead. No scientific basis was provided for this change, because none exists.
“Other countries have kept their promise to end international public finance for fossil fuels. There is no time to lose. Switzerland must take urgent action to end this madness – and they will be held accountable to their promises. Public money that should be going to support a just transition to renewable energy is instead being pumped into more climate-wrecking fossil fuel projects, harming communities.”
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