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From the end of 2022, Germany will no longer finance oil production facilities abroad.
Photo: Kanok Sulaiman / Getty Images
Germany joins an alliance of states that will no longer invest in fossil fuels abroad after the end of next year.
This was announced by Environment Secretary Jochen Flasbarth on Tuesday at the UN climate conference in Glasgow, as the AFP news agency announced.
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Last Thursday, the governments of the United States and around 20 other countries announced that they would withdraw from financing coal, oil and natural gas projects abroad by the end of 2022.
Several banks also want to end the financing of fossil fuels and instead invest in green energies.
However, it is only about projects that the federal states support with public funds outside their own national borders.
No loans to coal, oil or gas projects
Nevertheless, the decision is considered far-reaching because it means that no more loans or subsidies may be granted to coal, oil or gas projects.
Germany did not initially join this alliance.
Flasbarth had said on Monday that the executive federal government was currently examining the possibilities.
There are still "questions to be clarified".
In contrast to the USA and Canada - both large gas and oil producing countries - Germany has concerns about completely cutting the funds for gas projects.
According to Flasbarth, "the vast majority of these are investments in improving the efficiency of existing gas infrastructures."
But not a real exit?
Now the Secretary of State for the Environment said, however, that accession is now possible because Germany has received confirmation that investments in gas infrastructure are still possible in individual cases.
According to Flasbarth, this can be useful as a bridge between the exit from coal and the entry into renewable energies.
Natural gas is also needed for the production of green hydrogen.
"That must of course be directed towards the future," said Flasbarth about the possible investments.
In addition, these exceptions are only necessary for a transition period of “a few years”.
The initiative goes further than the G20 pledges
As the deal covers all fossil fuels, it goes further than the G20's commitment this year to stop funding only coal abroad.
China, for example, as the largest donor to date for coal-fired power plants in other countries, has also announced a funding stop.
The European Investment Bank (EIB) is also part of the new deal.
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According to an analysis by the non-profit organization Oil Change International, the countries that signed the agreement invested an average of $ 18 billion per year in international fossil fuel extraction projects between 2016 and 2020.
The money will continue to benefit poorer countries, but will now flow into sustainable energy projects.
The British COP Presidency's envoy, John Murton, said he was "pleased" about Germany's accession.
"Why should we use government funds overseas to make a problem worse while we try to do better at home?" He argued in favor of phasing out foreign investment in fossil fuels.
vki / AFP
