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Free keywords:
Supply-side, CBDR-RC, climate finance, CETP, G7, fossil fuels, just transition
Abstract:
This article examines the Clean Energy Transition Partnership and G7 commitment to end international public finance for fossil fuel energy projects and redirect support toward clean energy. It frames these initiatives as a supply-side shift in fossil fuel governance, with a focus on the geographic distribution of postcommitment G7 financing and its equity implications. While fossil fuel finance has declined, clean energy investment has not increased proportionately, and both remain unevenly distributed—favoring high- and upper-middle-income countries, while low-income nations are largely excluded. This imbalance raises concerns about the fairness of the policy, especially as G7 countries have positioned natural gas as a transition fuel and continue to expand domestic fossil fuel infrastructure under the justification of energy security following the Russia–Ukraine conflict. Meanwhile, fossil fuel finance for development and energy access in the Global South remains underfunded. Public statements from Global South leaders reflect widespread perceptions of injustice. We argue that the current implementation shifts responsibility onto the Global South, and we call for a rethink of the “one-size-fits-all” finance ban in favor of supply-side governance grounded in distributive justice, which accounts for the developmental imperative of the Global South.
