Locked out of a Just Transition: fossil fuel financing in Africa
Published on March 3, 2022 by 19 African partners, Banktrack and Oil Change International.
The report shows the scale of financial support provided by commercial banks, development finance institutions and Export Credit Agencies (ECAs) to the fossil fuel industry in West, Central, East and Southern Africa in the period between 2016 and June 2021, and the financial institutions most responsible for these flows. We found that between 2016 and June 2021, public and private financial institutions poured at least $132 billion into fossil fuels in Africa. Most of this finance comes from Europe, North America (mostly from the United States, the United Kingdom and France) and Asia (mostly from China and Japan).
The report further features ten highlighted projects and their impacts. Among others through these projects, the report shows that the claim that fossil fuels contribute to the economic and social development of African countries, often made by the fossil fuel industry and financiers, is a myth. Instead they cause severe environmental, social and climate impacts. The risk of fossil lock-in also poses serious longer term economic risks for African countries, which are already facing the brunt of climate change. Therefore, this report calls for a Just Transition, putting forward eight Just Transition principles and recommendations for financial institutions and governments.