The first global meeting of the climate 'coalition of the willing' has highlighted a lack of financing as one of the biggest barriers to moving away from fossil fuels, officials and experts said at a conference in Colombia on Monday. The gathering in the Caribbean city of Santa Marta aimed to speed up the shift from fossil fuels to cleaner energy, as governments face mounting pressure to move beyond climate pledges and outline how to phase out oil, gas and coal.
Financing Challenges
While renewable energy such as solar and wind is often cheaper to generate than fossil fuels, experts say the cost of transitioning is driven by other factors. Governments must invest heavily in infrastructure, including power grids and storage, while replacing existing oil and gas systems that still underpin many economies. In developing countries, high borrowing costs and limited access to financing can make clean energy projects significantly more expensive to build, even if they are cheaper to run over time.
Amiera Sawas, head of research and policy at the Fossil Fuel Non-Proliferation Treaty Initiative, said many countries are not ideologically opposed to shifting away from fossil fuels but are constrained by debt and limited fiscal space. "They can access financing for fossil fuels more easily," she noted.
Debt-Fossil Fuel Trap
In many developing regions, borrowing costs for renewable energy can be several times higher than in wealthier economies, averaging about 15 per cent in parts of Africa compared with roughly 2 per cent in Europe and North America. This dynamic can create what researchers describe as a 'debt–fossil fuel trap,' where countries rely on oil and gas income to service debt and maintain energy access.
Some governments are turning to fossil fuel revenues to help finance the transition. In Brazil's Espírito Santo state, money earned from oil and gas production is being used to fund emissions-reduction projects and attract private investors. However, experts caution that this approach has limits, as fossil fuel revenues are volatile and expected to decline over time.
Sub-National Efforts
Officials from wealthier regions are trying to fill the financing gap through policy and market mechanisms. In the United States, California has used carbon markets and low-carbon fuel standards to generate investment. "We remain steadfast in our commitment to carbon neutrality by 2045," said Sarah Izant, deputy secretary for climate policy at the California Environmental Protection Agency.
In Canada, Quebec passed a law to halt new fossil fuel exploration and production. "We decided, with a consensus, to say no to fossil fuel in Quebec," said Jean Lemire, the province's climate envoy, though he acknowledged pressure over costs and energy policy.
Global Coordination Slow
Lemire warned that global efforts to coordinate the transition remain slow, particularly at the UN where decisions require consensus. "Right now, at the UN, we will not make big advancement on anything … because we are under the rule of consensus," he said.
Efforts to build momentum outside formal UN talks are continuing. Tuvalu, a low-lying Pacific island nation, announced it will host the next conference. "Tuvalu is not waiting for the rest of the world to act, we are leading the way," said Dr. Maina Vakafua Talia, the country's minister of home affairs, environment and climate change. "This is not a negotiating position — it is a matter of survival."
The discussion in Santa Marta underscores a broader shift in the energy transition from a technological challenge to an economic one, focused on mobilising investment and reshaping economies long dependent on fossil fuels. But as Lemire noted, "There's a lot of money for war, but there's one common enemy — climate change — and we don't find that money."
