II 118th CONGRESS 2d Session S. 5617 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.

1. Short title This Act may be cited as the Global Climate Resilience Act of 2024 . 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 . 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: VI Debt reduction for countries vulnerable to effects of climate change 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. . 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.