The Global Climate Change Initiative (GCCI): Budget Authority and Request, FY2010-FY2016
Released: 2015-02-06T00:00:00

The Global Climate Change Initiative

On September 22, 2010, President Obama signed the Presidential Policy Directive on Global Development. The directive called for the elevation of foreign development assistance as a national priority and outlined an integrated approach to development, diplomacy, and national security. The Global Climate Change Initiative (GCCI)—one of the three main pillars to the 2010 directive —aims to integrate climate change considerations into relevant foreign assistance through a range of bilateral, multilateral, and private mechanisms to promote sustainable and resilient societies, foster low-carbon economic growth, and reduce greenhouse gas emissions from deforestation and land degradation. The GCCI is divided into three main programmatic initiatives, or categories: (1) adaptation assistance, (2) clean energy assistance, and (3) sustainable landscapes assistance.

Adaptation

Adaptation programs aim to assist low-income countries with reducing their vulnerability to climate change impacts and building climate resilience. Bilateral and regional programs at the Department of State and USAID target the more vulnerable countries in Africa, Asia, and Latin America and strive to address climate risks in areas including infrastructure, agriculture, health, and water services; to develop capacity for countries to use the best science and analysis for decision making; and to promote sound governance to carry out these decisions. Multilateral initiatives supported by the United States include the Least Developed Country Fund and the Special Climate Change Fund, which focus on climate resilience and food security provisions in countries with the greatest needs; and the Strategic Climate Fund: Pilot Program for Climate Resilience, which is tasked with coordinating comprehensive strategies in several of the most vulnerable countries to support actions that respond to the potential risks of a changing climate.

Clean Energy

Clean energy programs aim to reduce greenhouse gas emissions from energy generation and energy use by accelerating the deployment of clean energy technologies, policies, and practices. The United States delivers much of its assistance for clean energy deployment through multilateral trust funds. These funds are primarily housed in international financial institutions (e.g., the World Bank); are currently supported by the financial contributions of donor country governments; and provide financial assistance for projects implemented by a variety of organizations, including U.N. agencies, multilateral development banks, nongovernmental organizations, and national institutions. These funds take advantage of existing large-scale greenhouse gas reduction opportunities and establish investment channels for larger private sector financing. They include the Clean Technology Fund, which aims to spur large-scale clean energy investments in lower-income countries with rapidly growing emissions; the Global Environment Facility, which provides incremental funding for energy and infrastructure projects that support global environmental benefits; and the Strategic Climate Fund: Program for Scaling-Up Renewable Energy in Low Income Countries, which endeavors to assist the poorest countries expand energy access and stimulate economic growth through the scaled-up deployment of renewable energy strategies. Bilateral efforts at the Department of State and U.S. Agency for International Development (USAID) seek to complement the multilateral investments by helping to shape development policy and regulatory environments in the recipient countries.

Sustainable Landscapes

Sustainable landscape programs aim to reduce greenhouse gas emissions from deforestation and forest degradation. Bilateral and regional programs at the Department of State and USAID support country-driven policies for forest governance, forest cover and land use change monitoring systems, law-based resource management and land tenure, and on-the-ground efforts to halt deforestation and foster sustainable forest-based livelihoods. Multilateral initiatives include the Strategic Climate Fund: Forest Investment Program, which tries to address the circumstances that lead to deforestation and increased greenhouse gas emissions in select lower-income countries by improving regulation and enforcement, mobilizing private financing, and securing the social and economic benefits of sound forest management; and the Global Environment Facility, which provides incremental funding for projects that support global environmental benefits such as biodiversity and sustainable land use.

The recently launched United Nations Framework Convention on Climate Change (UNFCCC) Green Climate Fund, when capitalized, would support programming in all three programmatic initiatives.

Budget Authority

The Global Climate Change Initiative is funded through programs at the Department of State, the Department of the Treasury, and USAID (i.e., GCCI "core" agencies). Funds for these programs are appropriated in the Administration's Executive Budget, the International Affairs Function 150 account, for State, Foreign Operations, and Related Programs. Recent trends in GCCI budget authority have seen it fluctuate between $820 million and $950 million since FY2010, and it accounts for less than 2% of total programming in the Function 150 account. Recent budget authority for the GCCI was reported as $945 million in FY2010, $819 million in FY2011, $857 million in FY2012, $840 million in FY2013, and $834 million in FY2014. Funding for FY2015 has yet to be fully reported by agencies. The Administration's FY2016 GCCI budget request is for $1,290 million, including $500 million for the UNFCCC Green Climate Fund. Some additional funds for international climate change financing flow through programs at complementary agencies within the federal government (e.g., the Department of Energy, the Environmental Protection Agency, the Department of Agriculture); however, these allocations are defined outside the scope of the GCCI and are not included in this report. Budget authority for GCCI programming from FY2010 to FY2016 is presented by agency and account in Table A-1 .

Congress is responsible for several activities in regard to the GCCI, including (1) authorizing periodic appropriations for federal agency programs and multilateral fund contributions, (2) enacting those appropriations, (3) providing guidance to the agencies, and (4) overseeing U.S. interests in the programs.

Congressional committees of jurisdiction for international climate change programs at the Department of State, the Department of the Treasury, and USAID include the following:

U.S. House of Representatives Committee on Foreign Affairs, U.S. House of Representatives Committee on Financial Services, U.S. House of Representatives Committee on Appropriations, U.S. Senate Committee on Foreign Relations, and U.S. Senate Committee on Appropriations.

FY2010 Budget Authority

H.R. 3288 , the Consolidated Appropriations Act, 2010, was enacted December 16, 2009, as P.L. 111-117 . It included appropriations for the Department of State, Foreign Operations, and Related Programs (Division F) that support Global Climate Change Initiative programming. Many GCCI activities are funded by allocations at the sub-account level, and were left undefined in P.L. 111-117 . Allocations for FY2010 GCCI sub-account programmatic activities in this report are as reported by agencies on the U.S. Department of State's "Foreign Assistance" website.

Appropriations enacted in P.L. 111-117 related to GCCI activities include the following:

$86.5 million for the Global Environment Facility (of which the U.S. Department of State estimates that $37 million was allocated toward projects related to global climate change activities, with the remainder allocated to projects related to biodiversity, international waters, ozone protection, organic pollutants, etc.); $300.0 million for the Clean Technology Fund; $75.0 million for the Strategic Climate Fund (including the Pilot Program for Climate Resilience and the Forest Investment Program); and larger account level appropriations at the Department of State, USAID, and the Department of the Treasury, including "Development Assistance" at $2,520 million; "Assistance for Europe, Eurasia and Central Asia" at $741.6 million; "Economic Support Fund" at $6,344 million (with another $2,490 million enacted in FY2010 Supplemental Appropriations ( H.R. 4899 ; P.L. 111-212 ); "Department of the Treasury, Debt Restructuring" at $60 million; and "International Organizations and Programs" at $394 million. From these larger accounts, agencies reported $533 million in sub-account level bilateral and regional development programming allocated for GCCI activities.

See the Appendix for a breakdown of the FY2010 budget authority.

FY2011 Budget Authority

H.R. 1473 , the Department of Defense and Full-Year Continuing Appropriations Act, 2011, was enacted April 15, 2011, as P.L. 112-10 . It included appropriations for the Department of State, Foreign Operations, and Related Programs (Title IX) that support Global Climate Change Initiative programming. Many GCCI activities are funded by allocations at the sub-account level, and were left undefined in P.L. 112-10 . Allocations for FY2011 GCCI sub-account programmatic activities in this report are as reported by agencies on the U.S. Department of State's "Foreign Assistance" website.

Appropriations enacted in P.L. 112-10 related to GCCI activities include the following:

$89.8 million for the Global Environment Facility (of which the Global Environment Facility reports that approximately 50% is allocated toward projects related to global climate change activities, with the remainder allocated to projects related to biodiversity, international waters, ozone protection, organic pollutants, etc.); $184.6 million for the Clean Technology Fund; $49.9 million for the Strategic Climate Fund (including the Pilot Program for Climate Resilience, the Forest Investment Program, and the Program for Scaling-Up Renewable Energy in Low Income Countries); and larger account level appropriations at the Department of State, USAID, and the Department of the Treasury, including "Development Assistance" at $2,520 million; "Assistance for Europe, Eurasia and Central Asia" at $696 million; "Economic Support Fund" at $5,946 million; "Department of the Treasury, Debt Restructuring" at $50 million; and "International Organizations and Programs" at $354 million. From these larger accounts, agencies reported $539 million in sub-account level bilateral and regional development programming allocated for GCCI activities.

See the Appendix for a breakdown of the FY2011 budget authority.

FY2012 Budget Authority

H.R. 2055 , the Consolidated Appropriations Act, 2012, was enacted December 23, 2011, as P.L. 112-74 . It included appropriations for the Department of State, Foreign Operations, and Related Programs (Division I) that support Global Climate Change Initiative programming. Many GCCI activities are funded by allocations at the sub-account level, and were left undefined in P.L. 112-74 . Allocations for FY2012 GCCI sub-account programmatic activities in this report are as reported by agencies on the Department of State's "Foreign Assistance" website.

Appropriations enacted in P.L. 112-74 related to GCCI activities include the following:

$89.8 million for the Global Environment Facility (of which the Global Environment Facility reports that approximately 50% is allocated toward projects related to global climate change activities, with the remainder allocated to projects related to biodiversity, international waters, ozone protection, organic pollutants, etc.); $184.6 million for the Clean Technology Fund; $49.9 million for the Strategic Climate Fund (including the Pilot Program for Climate Resilience, the Forest Investment Program, and the Program for Scaling-Up Renewable Energy in Low Income Countries); larger account level appropriations at the Department of State, USAID, and the Department of the Treasury, including "Development Assistance" at $2,520 million; "Assistance for Europe, Eurasia and Central Asia" at $627 million; "Economic Support Fund" at $5,763 million; "Department of the Treasury, Debt Restructuring" at $12 million; and "International Organizations and Programs" at $349 million. From these larger accounts, agencies reported $493 million in sub-account level bilateral and regional development programming allocated for GCCI activities; and provisions for funding transfers were included, such that in consultation with the Secretary of the Treasury, the Secretary of State may transfer up to $200 million of the funds made available under the "Economic Support Fund" to funds appropriated under the headings ''Multilateral Assistance, Funds Appropriated to the President, International Financial Institutions'' for additional payments to such institutions, facilities, and funds. Using these provisions, the Department of State transferred funds to the Department of the Treasury, which allocated $30 million to the Global Environment Facility (of which $15 million is considered GCCI funding), $45 million to the Clean Technology Fund, and $25 million to the Strategic Climate Fund for FY2012.

See the Appendix for a breakdown of the FY2012 budget authority.

FY2013 Budget Authority

H.R. 933 , the Consolidated and Further Continuing Appropriations Act, 2013, was enacted March 26, 2013, as P.L. 113-6 . Under P.L. 113-6 , appropriations for the Department of State, Foreign Operations, and Related Programs (Division F, Title VII) that support Global Climate Change Initiative programming were funded through a continuing resolution at the same level as in FY2012, with several changes specified as provisions in the legislation. FY2013-enacted account level estimates were subject to the budget sequestration process as established by the Budget Control Act of 2011 ( P.L. 112-25 ) and the American Taxpayer Relief Act ( P.L. 112-240 ). The enacted State-Foreign Operations funding for FY2013 was reduced by approximately 5% through sequestration, and those reductions were applied at the program, project, and activity level. As in prior years, many GCCI activities are funded by allocations at the sub-account level, and were left undefined in P.L. 113-6 . Allocations for FY2013 GCCI sub-account programmatic activities in this report are as reported by agencies in the U.S. Office of Management and Budget, FY2014 Federal Climate Change Expenditures Report to Congress , August 2013. This reporting is minus the reductions pursuant to the Budget Control Act of 2011 ( P.L. 112-25 ) sequestration order, and accounting for any known and applicable reprogramming, transfers, or other related adjustments.

Appropriations enacted in P.L. 113-6 related to GCCI activities (post-sequestration and rescissions estimates) include the following:

$124.84 million for the Global Environment Facility (of which the Global Environment Facility reports that approximately 50% is allocated toward projects related to global climate change activities, with the remainder allocated to projects related to biodiversity, international waters, ozone protection, organic pollutants, etc.); $175.28 million for the Clean Technology Fund; $47.37 million for the Strategic Climate Fund (including the Pilot Program for Climate Resilience, the Forest Investment Program, and the Program for Scaling-Up Renewable Energy in Low Income Countries); larger account level appropriations at the Department of State, USAID, and the Department of the Treasury, including "Development Assistance" at $2,718 million; "Economic Support Fund" at $5,583 million; "Department of the Treasury, Debt Restructuring" at $11 million; and "International Organizations and Programs" at $331 million. From these larger accounts, agencies reported $472 million in sub-account level bilateral and regional development programming allocated for GCCI activities; and provisions for funding transfers, as they existed in P.L. 112-74 , were retained in P.L. 113-6 . Using these provisions, the Department of State transferred funds to the Department of the Treasury, which allocated $20.9 million to the Clean Technology Fund and $62.8 million to the Strategic Climate Fund for FY2013.

See the Appendix for a breakdown of the FY2013 budget authority.

FY2014 Budget Authority

H.R. 3547 , the Consolidated Appropriations Act, 2014, was enacted January 17, 2014, as P.L. 113-76 . It included appropriations for the Department of State, Foreign Operations, and Related Programs (Division K) that support Global Climate Change Initiative programming. Many GCCI activities are funded by allocations at the sub-account level, and were left undefined in P.L. 113-76 . Detailed FY2014 funding has yet to be fully reported by the agencies.

Appropriations enacted in P.L. 113-76 related to GCCI activities include the following:

$143.75 million for the Global Environment Facility (of which the Global Environment Facility reports that approximately 50% is allocated toward projects related to global climate change activities, with the remainder allocated to projects related to biodiversity, international waters, ozone protection, organic pollutants, etc.); $184.63 million for the Clean Technology Fund; $49.90 million for the Strategic Climate Fund (including the Pilot Program for Climate Resilience, the Forest Investment Program, and the Program for Scaling-Up Renewable Energy in Low Income Countries); larger account level appropriations at the Department of State, USAID, and the Department of the Treasury, including "Development Assistance" at $2,705 million, "Economic Support Fund" at $4,640 million, and "International Organizations and Programs" at $334 million. From these larger accounts, agencies have yet to report funding for sub-account level bilateral and regional development programming allocated for GCCI activities; and provisions for funding transfers were included, such that in consultation with the Secretary of the Treasury, the Secretary of State may transfer funds appropriated under the heading "Economic Support Fund" to funds appropriated under the heading "Multilateral Assistance, International Financial Institutions." Using these provisions, the Department of State transferred funds to the Department of the Treasury, which allocated $25.0 million to the Clean Technology Fund and $25.0 million to the Strategic Climate Fund for FY2014.

See the Appendix for a breakdown of the FY2014 proposed budget authority.

FY2015 Budget Authority

H.R. 83 , the Consolidated and Further Continuing Appropriations Act, 2015, was enacted December 16, 2014, as P.L. 113-235 . It included appropriations for the Department of State, Foreign Operations, and Related Programs (Division J) that support Global Climate Change Initiative programming. Many GCCI activities are funded by allocations at the sub-account level, and were left undefined in P.L. 113-235 . Detailed FY2015 funding has yet to be fully reported by the agencies.

Appropriations enacted in P.L. 113-235 related to GCCI activities include the following:

$136.56 million for the Global Environment Facility (of which the Global Environment Facility reports that approximately 50% is allocated toward projects related to global climate change activities, with the remainder allocated to projects related to biodiversity, international waters, ozone protection, organic pollutants, etc.); $184.63 million for the Clean Technology Fund; $49.90 million for the Strategic Climate Fund (including the Pilot Program for Climate Resilience, the Forest Investment Program, and the Program for Scaling-Up Renewable Energy in Low Income Countries); larger account level appropriations at the Department of State, USAID, and the Department of the Treasury, including "Development Assistance" at $2,507 million, "Economic Support Fund" at $5,459 million, and "International Organizations and Programs" at $344 million. From these larger accounts, agencies have yet to report funding for sub-account level bilateral and regional development programming allocated for GCCI activities; and provisions for funding transfers were included, such that in consultation with the Secretary of the Treasury, the Secretary of State may transfer funds appropriated under the heading "Economic Support Fund" to funds appropriated under the heading "Multilateral Assistance, International Financial Institutions." Using these provisions, the Department of State transferred funds to the Department of the Treasury, which allocated $16.7 million to the Clean Technology Fund and $13.3 million to the Strategic Climate Fund during FY2015.

See the Appendix for a breakdown of the FY2015 proposed budget authority.

FY2016 Budget Request

The President's FY2016 budget request for the Global Climate Change Initiative is $1,289.6 million, including the following:

$348.5 million for international climate change programming at USAID; $459.8 million for international climate change programming at the Department of State, including $350.0 million for the Green Climate Fund, $11.7 million for the UNFCCC/IPCC, and $25.5 million for the Montreal Protocol; and $481.3 million for international climate change programming at the Department of the Treasury, including $150.0 million for the Green Climate Fund, $168.3 million for the Global Environment Facility (of which approximately 60% is considered GCCI funding), $170.7 million for the Clean Technology Fund, and $59.6 million for the Strategic Climate Fund. The requests for the Clean Technology Fund and the Strategic Climate Fund would fulfill the joint $2 billion pledge made by the United States in 2008.

See the Appendix for a breakdown of the FY2016 request.

Key Issues for Congress

As Congress considers potential authorizations and/or appropriations for initiatives administered through the Department of State, the Department of the Treasury, USAID, and other agencies with international programs, it may have questions concerning the purpose, direction, efficiency, and effectiveness of U.S. agency initiatives and current bilateral and multilateral programs that address global climate change.

Some issues that may raise concerns over providing assistance include the following:

F iscal Constraints. Budget constraints may lead to questions about sustaining high levels of support for international development assistance in general, and international climate change assistance in particular. The burden is exacerbated during times of economic downturn, when the federal government is hard-pressed to generate fiscal resources to adequately address domestic challenges and maintain basic levels of public services and quality of life. Some have suggested that retaining available funds for immediate domestic priorities, such as fostering renewed economic growth and creating jobs, should take precedence over global concerns for which many Americans feel less urgency and responsibility. Potential for Misuse. National and international institutions that dispense financial assistance have been criticized on occasion for inefficient and bloated bureaucracies; their lack of transparency about project procurement practices and operating costs; and the proportion of their funds misused or lost through instances of graft, corruption, and other political inefficiencies. Some suggest revisiting operational guidance of these institutions before further appropriations are made. Uncertain Results . Questions remain regarding the overall effectiveness of international financial assistance in spurring economic development and reform in lower-income countries, and, more specifically, in addressing issues of climate change and the environment. Many studies have examined the effects of international assistance provided to lower-income countries, including both bilateral and multilateral mechanisms, and have returned mixed results, making it difficult to reach firm conclusions that would support or oppose continued contributions. Uncertainties in Climate Science . Prevailing scientific research on the current and future impacts of greenhouse gas emissions on the global climate exhibits varying degrees of analytical uncertainty. The lack of definitiveness in some data and in certain model projections has been offered by some as a reason to postpone and/or reconsider both domestic and international climate change assistance policies and programs.

Some issues that may support providing assistance include the following:

Commercial Interests. Some maintain that international climate change assistance benefits U.S. businesses, as support for low-emission economic growth may increase trade, commerce, and economic activity in the global marketplace for U.S. goods and services. Increased assistance may allow some U.S. industries to make competitive inroads into rapidly expanding markets, improve the advancement and commercialization of U.S. technologies, mobilize greater investment in related domestic sectors, and enhance job creation in the United States. Decreased funding may cede American influence in global markets to other economic powers still engaged with lower-income countries on environmental and natural resource issues (e.g., the European Union, China). Investment Efficiencies. Some argue that the costs of responding to tomorrow's climate-related catastrophes, instabilities, conflicts, and technological needs may be significantly higher than the costs of preventing them today. Some economists note that lower-income countries account for nearly all of the recent growth in global emissions and represent the cheapest near-term opportunity to mitigate GHG pollution as part of a cost-effective global solution. Natural Disaster Preparedness . Some claim that international climate change assistance is a means to support natural disaster preparedness around the globe. Assistance for adaptation activities to help "climate-proof" developing countries' infrastructure and other sectors may help avoid future capital and other losses; minimize the redirection of resources to ad hoc disaster response and urgent humanitarian needs; and avoid chronic humanitarian crises, such as food shortages, particularly for the resource poor in the least developed countries. National Security. Some defend international climate change assistance as a way to address and mitigate risks to national security. According to a 2008 National Intelligence Assessment, the impacts of global climate change may worsen problems of poverty, social tensions, environmental degradation, and weak political institutions across the developing world. Some see international climate change assistance as a means to help make lower-income countries less susceptible to these threats, for the benefit of both the country and the security interests of the United States. Internatio nal Leadership. Some see the promotion of international climate change assistance to lower-income countries as a method through which to increase U.S. leadership in global environmental issues. Through such leadership, the United States may be able to influence and set important international economic and environmental policies, practices, and standards.

Appendix. GCCI Budget Table