Title: Sustainable International Financial Institutions Act of 2020
Policy area: International Affairs

Summary:
Sustainable International Financial Institutions Act of 2020
This bill establishes requirements to promote clean energy and climate justice globally through international financing mechanisms.
Specifically, the bill requires the U.S. Executive Directors of specified international financial institutions to use the voice and vote of the United States to (1) advance the cause of reducing carbon emissions and transitioning the global economy to a clean energy economy, and (2) oppose any loan or extension of financial or technical assistance to a country or entity to create new capacity for fossil fuel activity. The Department of the Treasury must reduce the yearly U.S. contribution to a financial institution by the amount of any loans or assistance provided by the institution to a country or entity to create new capacity for fossil fuel activity during that year.
Further, the bill prohibits the United States from providing any loan, insurance, guarantee, or extension of financial or technical assistance to a country or entity for any fossil fuel activity.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 4834 Introduced in Senate (IS)]

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116th CONGRESS
  2d Session
                                S. 4834

   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

             October 21 (legislative day, October 19), 2020

  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.

    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 ``Sustainable International Financial 
Institutions Act of 2020''.

SEC. 2. CLEAN ENERGY AND CLIMATE JUSTICE AT INTERNATIONAL FINANCIAL 
              INSTITUTIONS.

    The International Financial Institutions Act (22 U.S.C. 262c et 
seq.) is amended by adding at the end the following:

              ``TITLE XX--CLEAN ENERGY AND CLIMATE JUSTICE

``SEC. 2001. CLEAN ENERGY AND CLIMATE JUSTICE.

    ``(a) In General.--The United States Executive Directors of the 
international financial institutions specified in subsection (c) shall 
use the voice and vote of the United States in those institutions--
            ``(1) to advance the cause of reducing carbon emissions and 
        transitioning the global economy to a clean energy economy, 
        including by seeking to channel assistance toward countries and 
        entities that are building clean and sustainable energy 
        systems; and
            ``(2) to oppose any loan or extension of financial or 
        technical assistance to any country or entity to create new 
        capacity for fossil fuel activity.
    ``(b) Reduction in Contributions.--The Secretary of the Treasury 
shall reduce the contribution of the United States to an international 
financial institution specified in subsection (c) in a fiscal year by 
the amount of any loans or extensions of financial or technical 
assistance provided by the institution to any country or entity to 
create new capacity for fossil fuel activity during that fiscal year.
    ``(c) International Financial Institutions Specified.--The 
international financial institutions specified in this subsection are 
the following:
            ``(1) The International Bank for Reconstruction and 
        Development.
            ``(2) The International Development Association.
            ``(3) The International Finance Corporation.
            ``(4) The Multilateral Investment Guarantee Agency.
            ``(5) The African Development Fund.
            ``(6) The African Development Bank.
            ``(7) The Asian Development Fund.
            ``(8) The Asian Development Bank.
            ``(9) The European Bank for Reconstruction and Development.
            ``(10) The Inter-American Development Bank.
            ``(11) The Inter-American Development Bank Invest.
            ``(12) The North American Development Bank.
    ``(d) Definitions.--In this section:
            ``(1) Fossil fuel activity.--The term `fossil fuel 
        activity' means the exploration, development, mining or 
        production, processing, refining, transportation (including 
        pipelines transporting gas, oil, or products thereof), 
        distribution, or marketing of, or the construction or operation 
        of plants for the processing or refining of, coal, petroleum, 
        natural gas, or any derivative of coal, petroleum, or natural 
        gas that is used for fuel.
            ``(2) Fossil fuel resource.--
                    ``(A) In general.--The term `fossil fuel resource' 
                means all forms of coal, oil, and gas.
                    ``(B) Inclusions.--The term `fossil fuel resource' 
                includes--
                            ``(i) bitumen from oil sands;
                            ``(ii) kerogen from oil shale;
                            ``(iii) liquids manufactured from coal;
                            ``(iv) coal bed methane;
                            ``(v) methane hydrates;
                            ``(vi) light oil derived from shale or 
                        other formations;
                            ``(vii) natural gas liquids; and
                            ``(viii) all conventionally and 
                        unconventionally produced hydrocarbons.''.

SEC. 3. PROHIBITION ON FOREIGN ASSISTANCE THAT WOULD SUPPORT FOSSIL 
              FUEL ACTIVITY.

    The United States may not provide any loan, insurance, guarantee, 
or extension of financial or technical assistance to any country or 
entity for any fossil fuel activity (as defined in section 2001(d) of 
the International Financial Institutions Act, as added by section 2), 
including through the United States International Development Finance 
Corporation, the Export-Import Bank of the United States, the Trade and 
Development Agency, the United States Agency for International 
Development, or the Millennium Challenge Corporation.
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