Are public banks gaslighting on climate finance? Analysing policies governing gas infrastructure

If climate finance is to be transformed, public and private finance directed to fossil fuel infrastructure, such as gas, must be restricted. Yet investments in downstream gas infrastructure, especially in the Global South, have surged underpinned by public financial support from Export Credit Agencies (ECAs). Since 2020, ECAs in G20 countries have provided more than US107 billion in financing for gas infrastructure and exploration, even while these public banks have introduced climate policies to limit financial support for fossil fuel infrastructure. We seek to understand the role of ECAs in financing international gas infrastructure. Drawing on a public database of ECA lending and a document analysis of ECA climate policies, we argue that ECA investments in the gas industry can be explained by exemptions in their climate policies, which are justified on security, technology, and development grounds. Further, these public financial flows undermine global efforts to limit emissions by locking in long-lived gas infrastructure. This analysis has important policy implications, including for how ECAs report and account for their emissions. Key policy insights Public banks in G20 countries continue to finance international gas infrastructure. This undermines global efforts to limit greenhouse gas emissions. The climate policies governing export credit agencies need to be updated, including by ending key exemptions for gas and accounting for Scope 3 emissions. International agreements that limit public finance for coal need to be extended to oil and gas.