More than 20 countries and financial institutions will halt all financing for fossil fuel development overseas and divert the spending to green energy instead from next year.

The move marks a significant boost for the transition to clean fuels. The Guardian understands the countries involved include the US, UK, Denmark and some developing countries that would receive such finance, including Costa Rica. The European Investment Bank is one of the financial institutions involved.

However, China and Japan, two big funders of fossil fuel development around the world, have shunned the initiative.

Guest post from The Guardian