Sustainable International Financial Institutions Act of 2020

Bill: 116-s-4834
Sponsor: full_name: Sen. Merkley, Jeff [D-OR]
Introduced: 2020-10-21
Policy area: International Affairs
Subjects: Air quality

Alternative and renewable resources

Climate change and greenhouse gases

Coal

Competitiveness, trade promotion, trade deficits

Foreign aid and international relief

Foreign loans and debt

International organizations and cooperation

Multilateral development programs

Oil and gas
Latest action: action_date: 2020-10-21
text: Read twice and referred to the Committee on Foreign Relations.

Summaries:
action_date: 2020-10-21
action_desc: Introduced in Senate
text: <p><b>Sustainable International Financial Institutions Act of 2020</b></p> <p>This bill establishes requirements to promote clean energy and climate justice globally through international financing mechanisms.</p> <p>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.</p> <p>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. </p>

tv_txt: II 116th CONGRESS 2d Session S. 4834 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.

1. Short title This Act may be cited as the Sustainable International Financial Institutions Act of 2020 . 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: XX Clean energy and climate justice 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. . 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.