II 

118TH CONGRESS 

1ST SESSION S. 3455 

To require the use of the voice and vote of the United States in international 

financial institutions to advance the cause of transitioning the global 

economy to a clean energy economy and to prohibit United States Government assistance to countries or entities to support fossil fuel activity, 

and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

DECEMBER 7, 2023 

Mr. MERKLEY introduced the following bill; which was read twice and referred 

to the Committee on Foreign Relations 

A BILL 

To require the use of the voice and vote of the United 

States in international financial institutions to advance 

the cause of transitioning the global economy to a clean 

energy economy and to prohibit United States Government assistance to countries or entities to support fossil 

fuel activity, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Sustainable Inter5 national Financial Institutions Act of 2023’’. 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
2 

•S 3455 IS

1 SEC. 2. CLEAN ENERGY AND CLIMATE JUSTICE AT INTER2 NATIONAL FINANCIAL INSTITUTIONS. 

3 The International Financial Institutions Act (22 

4 U.S.C. 262c et seq.) is amended by adding at the end the 

5 following: 

6 ‘‘TITLE XX—CLEAN ENERGY AND 

7 CLIMATE JUSTICE 

8 ‘‘SEC. 2001. CLEAN ENERGY AND CLIMATE JUSTICE. 

9 ‘‘(a) IN GENERAL.—The United States Executive Di10 rectors at the international financial institutions specified 

11 in subsection (c) shall use the voice and vote of the United 

12 States in those institutions— 

13 ‘‘(1) to advance the cause of reducing green14 house gas emissions and transitioning the global 

15 economy to a clean energy economy, including by 

16 seeking to channel assistance toward countries and 

17 entities that are building clean and sustainable en18 ergy systems; 

19 ‘‘(2) to oppose any policy reform, or investment, 

20 loan, or extension of financial or technical assistance 

21 to any country or entity, that is intended to create, 

22 or will have the effect of creating, new capacity for, 

23 or the expansion of, fossil fuel activity, including— 

24 ‘‘(A) any such policy reform, investment, 

25 loan, or extension of assistance that would supVerDate Sep 11 2014 04:08 Dec 16, 2023 Jkt 049200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S3455.IS S3455

kjohnson on DSK7ZCZBW3PROD with $$_JOB
3 

•S 3455 IS

1 port the refurbishment or life extension of exist2 ing fossil fuel capacity; or 

3 ‘‘(B) any such investment, loan, or exten4 sion of assistance to a country or entity that 

5 would necessitate, or is predicated upon, in6 creased fossil fuel capacity outside of the coun7 try receiving the investment, loan, or extension 

8 of assistance or the country in which the entity 

9 operates, as applicable, without regard whether 

10 the activity falls within the portfolio of the 

11 international financial institution providing the 

12 investment, loan, or extension of assistance; and 

13 ‘‘(3) to support the phasing out of funding for 

14 internal combustion engines for passenger vehicles 

15 and buses by 2025 in a way that is sustainable and 

16 sensitive to communities in need of mobility. 

17 ‘‘(b) REDUCTION OF CONTRIBUTIONS; DEPOSIT IN

18 ESCROW ACCOUNT.— 

19 ‘‘(1) DETERMINATION OF EXPENDITURE ON

20 NEW FOSSIL FUEL CAPACITY.—In each fiscal year, 

21 the Secretary of the Treasury shall— 

22 ‘‘(A) determine the amount of investments, 

23 loans, and extensions of financial or technical 

24 assistance provided by each international finan25 cial institution specified in subsection (c) to any 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
4 

•S 3455 IS

1 country or entity to create new capacity for fos2 sil fuel activity during the preceding fiscal year; 

3 and 

4 ‘‘(B) reduce the contribution of the United 

5 States to that institution by the amount deter6 mined under subparagraph (A). 

7 ‘‘(2) DEPOSIT IN ESCROW ACCOUNT.—The Sec8 retary shall deposit in an escrow account the amount 

9 by which the contribution of the United States to 

10 each international financial institution specified in 

11 subsection (c) is reduced under paragraph (1)(B). 

12 ‘‘(3) RELEASE FROM ESCROW ACCOUNT.—The 

13 Secretary shall release to each international financial 

14 institution specified in subsection (c) the amount in 

15 the escrow account under paragraph (2) attributable 

16 to contributions to that institution reduced under 

17 paragraph (1)(B) at such time as the Secretary de18 termines and certifies to Congress that the institu19 tion is no longer providing investments, loans, or ex20 tensions of financial or technical assistance to any 

21 country or entity to create new capacity for fossil 

22 fuel activity. 

23 ‘‘(4) REPORTS REQUIRED.—Not later than 120 

24 days after depositing amounts into the escrow ac25 count under paragraph (2) attributable to contribuVerDate Sep 11 2014 04:08 Dec 16, 2023 Jkt 049200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S3455.IS S3455

kjohnson on DSK7ZCZBW3PROD with $$_JOB
5 

•S 3455 IS

1 tions to an international financial institution speci2 fied in subsection (c) reduced under paragraph 

3 (1)(B), and annually thereafter until amounts are 

4 released to that institution under paragraph (3), the 

5 Secretary shall submit to Congress a report that 

6 documents investments, loans, and extensions of fi7 nancial or technical assistance provided by that in8 stitution to any country or entity to create new ca9 pacity for fossil fuel activity during the preceding 

10 fiscal year. 

11 ‘‘(c) INTERNATIONAL FINANCIAL INSTITUTIONS

12 SPECIFIED.—The international financial institutions spec13 ified in this subsection are the following: 

14 ‘‘(1) The International Bank for Reconstruction 

15 and Development. 

16 ‘‘(2) The International Development Associa17 tion. 

18 ‘‘(3) The International Finance Corporation. 

19 ‘‘(4) The Multilateral Investment Guarantee 

20 Agency. 

21 ‘‘(5) The African Development Fund. 

22 ‘‘(6) The African Development Bank. 

23 ‘‘(7) The Asian Development Fund. 

24 ‘‘(8) The Asian Development Bank. 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
6 

•S 3455 IS

1 ‘‘(9) The European Bank for Reconstruction 

2 and Development. 

3 ‘‘(10) The Inter-American Development Bank. 

4 ‘‘(11) The Inter-American Development Bank 

5 Invest. 

6 ‘‘(12) The North American Development Bank. 

7 ‘‘(d) DEFINITIONS.—In this section: 

8 ‘‘(1) FOSSIL FUEL ACTIVITY.—The term ‘fossil 

9 fuel activity’ means the exploration, development, 

10 mining or production, processing, refining, transpor11 tation (including pipelines transporting gas, oil, or 

12 products thereof), combustion, distribution, or mar13 keting of, or the construction or operation of plants 

14 for the processing or refining of, coal, petroleum, 

15 natural gas, or any derivative of coal, petroleum, or 

16 natural gas that is used for fuel. 

17 ‘‘(2) FOSSIL FUEL.— 

18 ‘‘(A) IN GENERAL.—The term ‘fossil fuel’ 

19 means all forms of coal, oil, and gas. 

20 ‘‘(B) INCLUSIONS.—The term ‘fossil fuel’ 

21 includes— 

22 ‘‘(i) bitumen from oil sands; 

23 ‘‘(ii) kerogen from oil shale; 

24 ‘‘(iii) liquids manufactured from coal; 

25 ‘‘(iv) coal bed methane; 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
7 

•S 3455 IS

1 ‘‘(v) methane hydrates; 

2 ‘‘(vi) light oil derived from shale or 

3 other formations; 

4 ‘‘(vii) natural gas liquids; and 

5 ‘‘(viii) all conventionally and uncon6 ventionally produced hydrocarbons. 

7 ‘‘(3) POLICY REFORM.—The term ‘policy re8 form’ means a process at an international financial 

9 institution that changes rules, regulations, or insti10 tutions and results in incentivizing fossil fuel invest11 ment, such as by lowering tax liability or increasing 

12 energy tariffs.’’. 

13 SEC. 3. PROHIBITION ON FOREIGN ASSISTANCE THAT 

14 WOULD SUPPORT FOSSIL FUEL ACTIVITY. 

15 The United States may not provide, directly or indi16 rectly (such as through a financial intermediary), any 

17 loan, insurance, guarantee, or extension of financial or 

18 technical assistance, including policy guidance, to any 

19 country or entity for any fossil fuel activity (as defined 

20 in section 2001(d) of the International Financial Institu21 tions Act, as added by section 2) or a related infrastruc22 ture project, including through the United States Inter23 national Development Finance Corporation, the Export24 Import Bank of the United States, the Trade and Devel25 opment Agency, the United States Agency for InterVerDate Sep 11 2014 04:08 Dec 16, 2023 Jkt 049200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S3455.IS S3455

kjohnson on DSK7ZCZBW3PROD with $$_JOB
8 

•S 3455 IS

1 national Development, or the Millennium Challenge Cor2 poration. 

Æ 


kjohnson on DSK7ZCZBW3PROD with $$_JOB