US-EU Divide on Fossil Fuel Subsidies in OECD Talks

The United States and the European Union disagree on how much to limit loans and guarantees for fossil fuel projects, like oil, gas, and coal, in discussions held by the OECD, a group of developed countries. They met in Paris but didn't reach a decision on how strict the ban should be, with more talks planned for later in the year. The EU wants to support only projects that would keep global warming under 1.5 degrees Celsius, while the U.S. is hesitant to make such a commitment. This issue is particularly important for the U.S. Export-Import Bank, which recently supported a large oil project in Bahrain, sparking criticism for not aligning with climate change goals. Export credit agencies, which belong to OECD countries, are major financiers of fossil fuel projects, contributing significantly to oil and gas financing. This is seen as contradicting global climate change targets, making it difficult to limit global warming as intended under the Paris Agreements.