Santa Marta, Colombia — Governments worldwide are continuing to channel far more public money into fossil fuels than renewable energy, raising concerns about energy security and the pace of the global transition to cleaner systems, according to a new analysis released by the International Institute for Sustainable Development.

The findings, published as senior officials gather in Santa Marta for the world’s first International Conference to Transition Away from Fossil Fuels, highlight a persistent imbalance in public finance that experts say undermines both climate goals and long-term economic resilience.

The report shows that in 2024, governments provided more than $1.2 trillion in public financial support to fossil fuels—around five times the $254 billion directed toward clean energy. This disparity, researchers warn, reflects a pattern that continues to delay meaningful progress toward a low-carbon future.

A costly cycle tied to energy crises

One of the clearest trends identified in the analysis is the strong link between fossil fuel subsidies and global price shocks. When energy prices rise, governments tend to respond by increasing spending on fossil fuels to shield consumers from immediate costs.

This approach, while politically expedient, has proven expensive and difficult to reverse. Subsidies surged to $1.7 trillion in 2022 during a global energy crisis and could rise again as oil prices remain elevated in 2026.

“Governments need to stop making the same mistakes and expect different outcomes,” said Angela Picciariello, a senior researcher involved in the study. She argued that while protecting households during crises is essential, long-term public investment should focus on building more resilient and sustainable energy systems.

Renewables growing—but not fast enough

The analysis finds that investment in renewable energy is increasing, particularly among G20 countries, but still falls far short of what is needed. Public support for renewables reached an estimated $169 billion in 2024—significant, but insufficient to match the scale of fossil fuel funding or the urgency of climate challenges.

Experts say this gap is critical at a time when countries are seeking to improve energy security and reduce exposure to volatile global fuel markets. Expanding renewable energy, grid infrastructure and energy storage could help stabilize prices and reduce dependence on imported fuels.

State-owned companies lag behind

Another key finding points to the role of state-owned energy enterprises, which remain heavily invested in fossil fuel infrastructure. In 2024, these companies accounted for nearly $360 billion in capital expenditure, with about 81 percent still directed toward fossil fuels.

This trend raises concerns about the risk of “stranded assets”—investments that may lose value as the world shifts toward cleaner energy. However, the report notes early signs of change, with some countries, including China, India and France, increasing investment in renewables and grid upgrades.

International finance shows modest shift

At the global level, international public finance is beginning to move in a more positive direction. Support for fossil fuel projects from major economies and multilateral development banks fell to $37 billion in 2024, while clean energy financing rose to $47 billion.

While this shift is seen as encouraging, researchers say it remains too slow to meet climate targets or ensure energy stability for vulnerable economies.

Impact on households and economies

The report underscores the social and economic consequences of current policies, particularly for low- and middle-income households. Energy price spikes can erode purchasing power and force families to make difficult choices between essentials such as food, transport and heating.

Broad fossil fuel subsidies, often used to cushion these impacts, are described as inefficient and poorly targeted. Over time, they can strain public finances, reinforce dependence on fossil fuels and leave countries exposed to future shocks.

Policy recommendations

The IISD analysis outlines several steps governments can take to realign public spending with climate and energy goals.

These include replacing blanket subsidies with targeted support for vulnerable households, scaling up investment in renewable energy and infrastructure, and giving state-owned enterprises clear mandates to transition toward cleaner energy systems.

The report also calls for stronger international cooperation and faster redirection of global public finance toward sustainable energy solutions, particularly in countries most vulnerable to energy price volatility.

With discussions underway in Colombia, the summit is expected to play a key role in shaping national and global strategies ahead of future climate negotiations.

Publication timing and embargo

The press release and underlying analysis were issued under embargo until 7:00 a.m. Central European Summer Time (CEST) on April 27, 2026. This means the information should not be published or reported before that time.

For outlets operating in Bangladesh (UTC+6), the embargo lifts at 11:00 a.m. local time on April 27. Publishing before this deadline would violate standard media embargo practices.

As such, this article is suitable for publication on or after April 27, once the embargo has officially expired.

A critical moment for energy policy

As the Santa Marta conference begins, the findings add urgency to global discussions on how to transition away from fossil fuels without compromising economic stability or social equity.

The challenge, experts say, is not only to increase investment in clean energy, but to fundamentally shift how governments use public finance—moving from short-term crisis responses to long-term resilience.

Whether policymakers can deliver that shift remains one of the defining questions of the summit.