Over twenty countries and financial institutions will halt all financing for fossil fuel development overseas and divert the spending to green energy instead.
The agreement marks a significant boost for the transition to clean fuels.
The US, UK, Denmark and some developing countries that would receive such finance – including Costa Rica are all involved in the pledge.
The move will generate an estimated $8 billion a year around the world for clean energy.
The agreement will prevent the funding of any fossil fuel development, including gas.
However, China and Japan – the two largest funders of fossil fuel development around the world have shunned the initiative.
The countries involved in the pact will be able to continue with the development of their own fossil fuel resources in their own country.
IMAGE – Gage Skidmore/”PM Boris Johnson speaking at the opening of the UK-Africa Investment Summit in London, 20 January 2020″ by DFID – UK