Rich countries spent US$2.7 trillion on domestic fossil fuel subsidies between 2010 and 2022, six times more than the US$437 billion they committed to provide for international climate finance over the same period, according to new analysis from The ONE Campaign.

This is despite repeated pledges to phase out fossil fuel subsidies and dramatically increase support for low-income climate-vulnerable nations. At the UN climate conference in Azerbaijan later this month, world leaders are supposed to agree a new collective goal for climate finance, but these figures cast doubt on whether the political will really exists to transform the system. 

“This data shows the true scale of climate hypocrisy: instead of fulfilling their promises to support climate-vulnerable countries, wealthy countries are funding activities that are fueling the climate crisis, propping up a trillion-dollar industry with trillions in subsidies. As world leaders gather at COP29, they have a clear choice: continue a costly cycle of hypocrisy, or redirect resources toward sustainable, inclusive growth for everyone’s benefit,” said Joseph Kraus, Senior Director of Policy at ONE. 

Of the countries legally obliged under the UN Convention on Climate Change to provide climate finance to developing nations, Italy spent 36 times more on fossil fuel subsidies than climate finance between 2010-2022. Belgium and the UK both spent nine times more. The US and Canada spent 5 and 4 times more. France and Germany did better, spending 1.8 and 1.7 times more on fossil fuel subsidies. In fact, the difference is probably bigger because promised climate finance is often not delivered. 

Beyond the so-called Annexe 2 countries, the discrepancies are even starker. Between 2010 and 2022, the United Arab Emirates spent over 150 times more on fossil fuel subsidies than climate finance. This year’s COP host, Azerbaijan, spent over 1,800 times more on fossil fuel subsidies than climate finance between 2014 and 2022, making it the worst performer. Saudi Arabia spent US$331 billion on fossil fuel subsidies between 2015 and 2022 – 1,200 times more than it spent on climate finance.

Meanwhile, between 2010 and 2022, the world’s seven largest public oil and gas companies, BP, Chevron, Conoco, Eni, Exxon, Shell, and Total, made US$1 trillion in combined profits. 

These revelations come even as climate impacts accelerate and the scale of need grows. Experts suggest that low- and middle-income countries will need an additional US$1.8 trillion per year by 2030 to respond to climate change and transform their economies. At least one fifth of that will need to come from bilateral and multilateral donors, and yet most rich countries are slashing their aid budgets. 

ONE is calling on rich country leaders to:

• Follow through on their pledge to cut fossil fuel subsidies and use that money to support climate and development efforts in low- and middle-income countries. 
• Support an ambitious new climate finance goal that reflects countries’ needs.
• Increase their contributions to the World Bank’s International Development Association.
• Prioritise aid budgets to help with climate adaptation and economic growth.

Full analysis: 

Data: https://github.com/ONEcampaign/fossil_fuel_subsidies/tree/main/output 

Methodology: https://observablehq.com/@one-campaign/climate-finance-hypocrisy