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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 5617 Introduced in Senate (IS)]

<DOC>

118th CONGRESS
  2d Session
                                S. 5617

To provide for debt reduction for developing countries for purposes of 
              climate adaptation, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

            December 19 (legislative day, December 16), 2024

   Mr. Welch introduced the following bill; which was read twice and 
             referred to the Committee on Foreign Relations

_______________________________________________________________________

                                 A BILL

 
To provide for debt reduction for developing countries for purposes of 
              climate adaptation, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Global Climate Resilience Act of 
2024''.

SEC. 2. EXPANSION OF DEBT REDUCTION UNDER TROPICAL FOREST AND CORAL 
              REEF CONSERVATION ACT OF 1998.

    (a) Expansion of Eligibility.--
            (1) Definition of covered country.--Paragraph (5) of 
        section 803 of the Tropical Forest and Coral Reef Conservation 
        Act of 1998 (22 U.S.C. 2431a) is amended to read as follows:
            ``(5) Covered country.--The term `covered country' means--
                    ``(A) a low income, lower-middle income, or upper-
                middle income country, as determined by the World Bank; 
                or
                    ``(B) a small island developing state, as 
                determined by the United Nations.''.
            (2) Eligibility for benefits.--Section 805(a) of the 
        Tropical Forest and Coral Reef Conservation Act of 1998 (22 
        U.S.C. 2431c(a)) is amended by striking ``developing country'' 
        and inserting ``covered country''.
    (b) Conservation Agreements.--
            (1) Prioritization of projects and activities.--Section 
        809(e)(2) of the Tropical Forest and Coral Reef Conservation 
        Act of 1998 (22 U.S.C. 2431g(e)(2)) is amended by inserting 
        ``and to activities that are also aimed at reducing gender, 
        income, and social inequalities'' after ``planning and 
        execution''.
            (2) Administering body.--Section 809(c)(2)(A)(iii) of the 
        Tropical Forest and Coral Reef Conservation Act of 1998 (22 
        U.S.C. 2431g(c)(2)(A)(iii)) is amended--
                    (A) by striking ``a broad range of'';
                    (B) in subparagraph (I), by inserting ``a broad 
                range of'' after ``(I)'';
                    (C) in subparagraph (II)--
                            (i) by inserting ``a broad range of'' after 
                        ``(II)''; and
                            (ii) by striking ``; and'' and inserting a 
                        semicolon;
                    (D) in subparagraph (III)--
                            (i) by inserting ``a broad range of'' after 
                        ``(III)''; and
                            (ii) by striking the period at the end and 
                        inserting ``; and''; and
                    (E) by adding at the end the following new 
                subparagraph:
                                            ``(aa) the beneficiary 
                                        community or communities.''.
            (3) Review of larger grants.--Section 809(f) of the 
        Tropical Forest and Coral Reef Conservation Act of 1998 (22 
        U.S.C. 2431g(f)) is amended by striking ``$250,000'' and 
        inserting ``$1,000,000''.
    (c) Funding for Reduction of Debt.--
            (1) Authorization of appropriations.--Section 806(d) of the 
        Tropical Forest and Coral Reef Conservation Act of 1998 (22 
        U.S.C. 2431d(d)) is amended by striking ``authorized to be 
        appropriated to the President the following:'' and all that 
        follows through the period at the end of paragraph (13) and 
        inserting ``authorized to be appropriated such sums as may be 
        necessary.''.
            (2) Use of funds to conduct program audits, evaluations, 
        monitoring, and administration.--Section 806(e) of the Tropical 
        Forest and Coral Reef Conservation Act of 1998 (22 U.S.C. 
        2431d(e)) is amended by striking ``Of the amounts'' and all 
        that follows through ``$300,000 is authorized to be made 
        available'' and inserting ``One and one-half (1.5) percent of 
        the amounts made available to carry out this part for a fiscal 
        year is authorized to be made available''.

SEC. 3. DEBT REDUCTION FOR COUNTRIES VULNERABLE TO EFFECTS OF EXTREME 
              WEATHER EVENTS AND SLOW-ONSET DISASTERS.

    The Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.) is 
amended by adding at the end the following:

   ``PART VI--DEBT REDUCTION FOR COUNTRIES VULNERABLE TO EFFECTS OF 
                             CLIMATE CHANGE

``SEC. 901. DEBT REDUCTION FOR COUNTRIES VULNERABLE TO EFFECTS OF 
              EXTREME WEATHER EVENTS AND SLOW-ONSET DISASTERS.

    ``(a) Purposes.--The purposes of this section are--
            ``(1) to support the ability of countries to adapt to 
        effects of extreme weather events and slow-onset climate 
        disasters; and
            ``(2) to ensure that resources freed from debt in such 
        countries are targeted to developing resilience to the effects 
        of climate change.
    ``(b) Eligibility for Benefits.--
            ``(1) In general.--A country is eligible for benefits under 
        this section if the President determines that--
                    ``(A) the country is--
                            ``(i) a low income, lower-middle income, or 
                        upper-middle income country, as determined by 
                        the World Bank; or
                            ``(ii) a small island developing state, as 
                        determined by the United Nations;
                    ``(B) the government of the country is 
                democratically elected;
                    ``(C) the government of the country (including its 
                military or other security forces) does not engage in a 
                consistent pattern of gross violations of 
                internationally recognized human rights; and
                    ``(D) the government of the country has developed a 
                plan to use the benefits made available under this 
                section to conduct--
                            ``(i) climate adaptation activities; or
                            ``(ii) activities to recover from extreme 
                        weather events or slow-onset climate disasters.
            ``(2) Congressional notification.--Not less than 15 days 
        before formally determining under paragraph (1) that a country 
        is eligible for benefits under this section, the President 
        shall notify the appropriate congressional committees of 
        intention of the President to determine that the country is 
        eligible for such benefits.
            ``(3) Preferences.--In providing benefits under this 
        section, preference shall be given to countries with plans 
        described in paragraph (1)(D) that--
                    ``(A) involve local communities in the planning and 
                execution of activities described in that paragraph; 
                and
                    ``(B) aim to reduce gender, income, and social 
                inequalities through such activities.
    ``(c) Reduction of Debt Owed to United States as Result of Certain 
Loans.--
            ``(1) Authority to reduce debt.--
                    ``(A) Authority.--The President may reduce the 
                amount owed to the United States (or any agency of the 
                United States) as a result of loans made to an eligible 
                country by the United States under part I of this Act, 
                chapter 4 of part II of this Act, or predecessor 
                foreign economic assistance legislation.
                    ``(B) Authorization of appropriations.--There are 
                authorized to be appropriated to the President such 
                sums as may be necessary to carry out this subsection.
                    ``(C) Certain prohibitions inapplicable.--
                            ``(i) In general.--A reduction of debt 
                        pursuant to this subsection shall not be 
                        considered assistance for purposes of any 
                        provision of law limiting assistance to a 
                        country.
                            ``(ii) Nonapplicability of certain 
                        restrictions.--The authority of this subsection 
                        may be exercised notwithstanding section 620(r) 
                        of this Act or section 321 of the International 
                        Development and Food Assistance Act of 1975 
                        (Public Law 94-161; 22 U.S.C. 2220a note).
            ``(2) Implementation of debt reduction.--
                    ``(A) In general.--Any debt reduction pursuant to 
                paragraph (1) shall be accomplished at the direction of 
                the President by the exchange of a new obligation for 
                obligations of the type referred to in that paragraph.
                    ``(B) Exchange of obligations.--
                            ``(i) Notification.--The President shall 
                        notify the agency primarily responsible for 
                        administering part I of this Act (22 U.S.C. 
                        2151 et seq.) of an agreement entered into 
                        under subparagraph (A) with a country to 
                        exchange a new obligation for outstanding 
                        obligations.
                            ``(ii) Cancellation and issuance of new 
                        debt.--At the direction of the President, the 
                        old obligations that are the subject of the 
                        agreement entered into under subparagraph (A) 
                        shall be canceled and a new debt obligation for 
                        the country shall be established relating to 
                        the agreement, and the agency primarily 
                        responsible for administering part I of this 
                        Act shall make an adjustment in its accounts to 
                        reflect the debt reduction.
    ``(d) Authority To Engage in Debt-for-Climate Adaptation Swaps and 
Debt Buybacks.--
            ``(1) Loans eligible for sale, reduction, or 
        cancellation.--
                    ``(A) Debt-for-climate adaptation swaps.--
                            ``(i) Sale, reduction, and cancellation.--
                        Notwithstanding any other provision of law, the 
                        President may, in accordance with this 
                        subsection, sell to any eligible purchaser 
                        described in subparagraph (B) loans described 
                        in subsection (c)(1)(A), or on receipt of 
                        payment from such a purchaser, reduce or cancel 
                        such loans or portion thereof, only for the 
                        purpose of facilitating debt-for-climate 
                        adaptation swaps.
                            ``(ii) Purchase of privately owned debt.--
                                    ``(I) In general.--The President 
                                may, in accordance with this 
                                subsection, purchase privately owned 
                                debt of an eligible country, if that 
                                debt is purchased for not more than 65 
                                percent of the face value of the debt, 
                                for the purpose of facilitating debt-
                                for-climate adaptation swaps.
                                    ``(II) Use of proceeds.--
                                Notwithstanding section 3302 of title 
                                31, United States Code, the proceeds of 
                                any purchase under subclause (I)--
                                            ``(aa) shall be credited as 
                                        offsetting collections to the 
                                        account that finances the 
                                        activities under this section;
                                            ``(bb) shall be available 
                                        for expenditure only to pay the 
                                        costs of activities under this 
                                        section; and
                                            ``(cc) shall remain 
                                        available until expended.
                    ``(B) Eligible purchaser described.--A loan may be 
                sold, reduced, or canceled under subparagraph (A) only 
                to a purchaser that presents plans satisfactory to the 
                President for using the loan for the purpose of 
                engaging in debt-for-climate adaptation swaps.
                    ``(C) Consultation requirement.--Before the sale 
                under subparagraph (A)(i) to any eligible purchaser 
                described in subparagraph (B), or any reduction or 
                cancellation under subparagraph (A)(i), of any loan 
                made to an eligible country, and before the purchase of 
                privately owned debt under subparagraph (A)(ii), the 
                President shall consult with the country concerning the 
                amount of loans to be sold, reduced, or canceled, or 
                debt to be purchased, as the case may be, and their 
                uses for debt-for-climate adaptation swaps.
                    ``(D) Authorization of appropriations.--There are 
                authorized to be appropriated to the President such 
                sums as may be necessary to carry out this subsection.
            ``(2) Debt buybacks.--Notwithstanding any other provision 
        of law, the President may, in accordance with this subsection, 
        sell to any eligible country any loans described in subsection 
        (c)(1)(A) or on receipt of payment from an eligible country, 
        reduce or cancel such loans or portion thereof, only for the 
        purpose of facilitating a debt buyback by an eligible country 
        of its own qualified debt in order to support climate 
        adaptation activities.
            ``(3) Terms and conditions.--Notwithstanding any other 
        provision of law, the President shall, in accordance with this 
        subsection, establish the terms and conditions under which 
        loans may be sold, reduced, or canceled pursuant to this 
        subsection.
            ``(4) Deposit of proceeds.--The proceeds from the sale, 
        reduction, or cancellation of any loan sold, reduced, or 
        canceled pursuant to this subsection shall be deposited in the 
        United States Government account or accounts established for 
        the repayment of the loan.
    ``(e) Consultations With Congress.--The President shall consult 
with the appropriate congressional committees on a periodic basis to 
review the operation of this section and the eligibility of countries 
for benefits under this section.
    ``(f) Annual Reports to Congress.--
            ``(1) In general.--Not later than April 15 of each year, 
        the President shall prepare and submit to Congress an annual 
        report concerning the operation of this section during the 
        preceding calendar year.
            ``(2) Elements.--Each report required by paragraph (1) 
        shall include--
                    ``(A) a description of the activities undertaken 
                under this section during the preceding calendar year; 
                and
                    ``(B) a description of any agreement entered into 
                under this section.
    ``(g) Definitions.--In this section:
            ``(1) Appropriate congressional committees.--The term 
        `appropriate congressional committees' means--
                    ``(A) the Committee on Foreign Relations and the 
                Committee on Appropriations of the Senate; and
                    ``(B) the Committee on Foreign Affairs and the 
                Committee on Appropriations of the House of 
                Representatives.
            ``(2) Climate adaptation activities.--The term `climate 
        adaptation activities' means activities undertaken to make 
        changes to processes, practices, or structures that moderate 
        potential damage from hazardous events, trends, or disturbances 
        associated with extreme weather events and slow-onset climate 
        disasters.
            ``(3) Debt-for-climate adaptation swap.--The term `debt-
        for-climate adaptation swap' means the reduction of amounts 
        owed to the United States (or any agency of the United States) 
        by an eligible country in exchange for the commitment of that 
        country to conduct climate adaptation activities.
            ``(4) Eligible country.--The term `eligible country' means 
        a country determined under subsection (b) to be eligible for 
        benefits under this section.
            ``(5) Extreme weather event.--The term `extreme weather 
        event' means an occurrence of unusually severe weather or 
        climate conditions that can cause devastating impacts on 
        communities and agricultural and natural ecosystems.
            ``(6) Slow-onset climate disaster.--The term `slow-onset 
        climate disaster' means an event that evolves gradually from 
        incremental changes occurring over many years or from an 
        increased frequency or intensity of recurring events, such as 
        sea-level rise, loss of biodiversity, desertification, 
        increasing temperatures, or ocean acidification.''.

SEC. 4. SUPPORT BY INTERNATIONAL FINANCIAL INSTITUTIONS FOR REDUCING 
              DEBT LOAD OF COUNTRIES WITH HIGH VULNERABILITY TO EXTREME 
              WEATHER EVENTS AND SLOW-ONSET CLIMATE DISASTERS.

    (a) In General.--The United States Executive Directors at the 
international financial institutions shall use the voice and vote of 
the United States in those institutions to support countries with high 
vulnerability to extreme weather events and slow-onset climate 
disasters by advocating for policies that reduce or restructure the 
debt load of those countries, such as by facilitating--
            (1) debt forgiveness agreements;
            (2) debt buybacks;
            (3) debt-for-climate and debt-for-nature swaps; and
            (4) other similar programs.
    (b) Definitions.--In this section:
            (1) International financial institution.--The term 
        ``international financial institution'' means each of the 
        following:
                    (A) The International Monetary Fund.
                    (B) The International Bank for Reconstruction and 
                Development.
                    (C) The International Development Association.
                    (D) The International Finance Corporation.
                    (E) The Multilateral Investment Guarantee Agency.
                    (F) The African Development Fund.
                    (G) The African Development Bank.
                    (H) The Asian Development Fund.
                    (I) The Asian Development Bank.
                    (J) The European Bank for Reconstruction and 
                Development.
                    (K) The Inter-American Development Bank (in this 
                section referred to as ``IDB'').
                    (L) IDB Invest.
                    (M) The North American Development Bank.
            (2) Other terms.--The terms ``extreme weather event'' and 
        ``slow-onset climate disaster'' has the meanings given those 
        terms in section 901 of the Foreign Assistance Act of 1961, as 
        added by section 3.
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