Continued licensing of new fossil fuel projects is incompatible with climate goals and risks locking countries into stranded assets, fiscal losses and decades of additional emissions. iStock
Energy

19 governments call for fossil fuel phase-out roadmap, global finance push and end to new expansion

Governments warn fossil fuel dependence threatens economic stability

Puja Das

  • A coalition of 19 national and subnational governments has demanded a coordinated global roadmap to phase out fossil fuels.

  • It warned that new oil, gas and coal expansion is incompatible with the 1.5°C goal.

  • The synthesis report recasted the transition as an economic and security imperative.

  • It called for finance reform, a just transition facility and binding commitments to end new fossil fuel projects.

A coalition of 19 national and subnational governments has called for a coordinated global transition away from fossil fuels, urging new finance mechanisms, binding sectoral targets, stronger diplomacy and an end to continued fossil fuel expansion incompatible with the 1.5°C climate goal. The demands are outlined in a new synthesis document based on written submissions and an in-person retreat in Chantilly, France in March 2026.

This comes against the backdrop of the Santa Marta conference, which was officially announced in November 2025 during COP30, after the final summit text omitted references to fossil fuels. Running from April 24-29, 2026, the conference seeks to build a global coalition to phase out oil, gas and coal, while advancing efforts initiated under the COP30 presidency to create a transition roadmap.

The report Synthesis of National and Subnational Governments' Positions on Transitioning Away from Fossil Fuels showed the shift is no longer seen solely as a climate agenda but as a broader programme of economic transformation, industrial competitiveness and energy security.

It identifies three priority pillars: Reducing economic dependence on fossil fuels, transforming energy supply and demand systems and strengthening international cooperation.

Fossil fuels now seen as economic risk

Governments said dependence on fossil fuels remains deeply tied to exports, fiscal revenues, jobs and regional economies, making the transition more complex than a simple energy switch.

The synthesis noted that many countries remain locked into carbon-intensive sectors such as industry, transport, tourism and electricity generation, while others face import dependence and vulnerability to global fuel price shocks.

There was broad support for structured economic diversification, targeted transition planning for workers and fossil fuel-dependent regions, carbon pricing reforms, dedicated public transition funds, labour reconversion programmes and demand-side energy efficiency measures. Governments said these policies are needed to reduce dependence while maintaining social stability and economic resilience.

However, divisions remained over how quickly countries should move, how fossil fuel subsidies should be phased out and whether international support should compensate nations facing higher transition costs.

Call to halt new fossil fuel expansion

One of the strongest recommendations is for an international treaty to immediately halt new fossil fuel exploration and expansion, while establishing enforceable commitments for the equitable phase-down of existing production in line with 1.5°C pathways.

The synthesis warned that continued licensing of new fossil fuel projects is incompatible with climate goals and risks locking countries into stranded assets, fiscal losses and decades of additional emissions.

Governments identified renewable energy deployment, electrification, energy efficiency, battery storage, public transport, rail freight and grid modernisation as the core tools to reduce fossil fuel demand.

But the document flags major barriers. Many developing economies continue to face a high cost of capital, while weak grids and inadequate storage systems slow renewable energy integration. Countries also reported insufficient incentives for electric vehicles and industrial electrification, alongside energy poverty and unequal access to clean technologies. In several markets, slow permitting systems and fossil fuel subsidies continue to distort investment decisions and delay change.

It also warned that poor alignment between clean energy supply investments and actual consumer demand could leave infrastructure underused while emissions cuts are delayed.

Demand for global finance reform

A major theme running through the submissions is frustration with current global finance systems. Countries cited limited access to concessional climate finance, heavy debt burdens, high transaction costs, misaligned investor risk perceptions and inadequate support from multilateral development banks. Many governments said these constraints are preventing them from scaling renewable energy, modernising grids and transforming industry at the required pace.

To address this, the synthesis proposes a Global Just Transition Finance Facility offering grants, concessional finance and debt relief, alongside debt-swap mechanisms linked to clean energy investment.

It also called for reform of the international financial architecture to unlock cheaper long-term capital for renewables, grids and industrial transformation.

The report said existing UN climate processes are too slow to deliver the speed and scale required to keep warming to 1.5°C, citing structural limits of consensus-based negotiations that allow blocking of progress.

Governments therefore backed more flexible coalitions, country platforms and implementation partnerships that can move faster while remaining linked to the UNFCCC and Paris Agreement.

The synthesis recommends using future COP summits and Global Stocktake cycles to consolidate progress and scale successful transition models.

Social acceptance key battlefront

The document repeatedly warned that misinformation and public resistance can derail reforms such as subsidy removal, transmission lines, renewable projects and industrial restructuring.

Governments said the transition must be framed not only around climate benefits, but also around lower household energy bills, greater energy independence, cleaner air, new industries, local job creation and stronger economic competitiveness.

The synthesis offers one of the clearest political snapshots yet of how governments now view fossil fuel transition in 2026: not as an environmental niche issue, but as a strategic economic necessity shaped by trade, jobs, debt and geopolitics.

Its bluntest message is that without new finance, stronger cooperation and a clear global roadmap to phase down fossil fuels, many countries fear they cannot move fast enough.