Sustainable International Financial Institutions Act of 2020

II 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 Gov- ernment 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 Govern- ment assistance to countries or entities to support fossil fuel activity, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Sustainable Inter- 4 national Financial Institutions Act of 2020’’. 5 VerDate Sep 11 2014 22:12 Oct 31, 2020 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S4834.IS S4834 pbinns on DSKJLVW7X2PROD with BILLS 2 •S 4834 IS SEC. 2. CLEAN ENERGY AND CLIMATE JUSTICE AT INTER- 1 NATIONAL FINANCIAL INSTITUTIONS. 2 The International Financial Institutions Act (22 3 U.S.C. 262c et seq.) is amended by adding at the end the 4 following: 5 ‘‘TITLE XX—CLEAN ENERGY AND 6 CLIMATE JUSTICE 7 ‘‘SEC. 2001. CLEAN ENERGY AND CLIMATE JUSTICE. 8 ‘‘(a) IN GENERAL.—The United States Executive Di- 9 rectors of the international financial institutions specified 10 in subsection (c) shall use the voice and vote of the United 11 States in those institutions— 12 ‘‘(1) to advance the cause of reducing carbon 13 emissions and transitioning the global economy to a 14 clean energy economy, including by seeking to chan- 15 nel assistance toward countries and entities that are 16 building clean and sustainable energy systems; and 17 ‘‘(2) to oppose any loan or extension of finan- 18 cial or technical assistance to any country or entity 19 to create new capacity for fossil fuel activity. 20 ‘‘(b) REDUCTION IN CONTRIBUTIONS.—The Sec- 21 retary of the Treasury shall reduce the contribution of the 22 United States to an international financial institution 23 specified in subsection (c) in a fiscal year by the amount 24 of any loans or extensions of financial or technical assist- 25 ance provided by the institution to any country or entity 26 VerDate Sep 11 2014 22:12 Oct 31, 2020 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S4834.IS S4834 pbinns on DSKJLVW7X2PROD with BILLS 3 •S 4834 IS to create new capacity for fossil fuel activity during that 1 fiscal year. 2 ‘‘(c) INTERNATIONAL FINANCIAL INSTITUTIONS 3 SPECIFIED.—The international financial institutions spec- 4 ified in this subsection are the following: 5 ‘‘(1) The International Bank for Reconstruction 6 and Development. 7 ‘‘(2) The International Development Associa- 8 tion. 9 ‘‘(3) The International Finance Corporation. 10 ‘‘(4) The Multilateral Investment Guarantee 11 Agency. 12 ‘‘(5) The African Development Fund. 13 ‘‘(6) The African Development Bank. 14 ‘‘(7) The Asian Development Fund. 15 ‘‘(8) The Asian Development Bank. 16 ‘‘(9) The European Bank for Reconstruction 17 and Development. 18 ‘‘(10) The Inter-American Development Bank. 19 ‘‘(11) The Inter-American Development Bank 20 Invest. 21 ‘‘(12) The North American Development Bank. 22 ‘‘(d) DEFINITIONS.—In this section: 23 ‘‘(1) FOSSIL FUEL ACTIVITY.—The term ‘fossil 24 fuel activity’ means the exploration, development, 25 VerDate Sep 11 2014 22:12 Oct 31, 2020 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S4834.IS S4834 pbinns on DSKJLVW7X2PROD with BILLS 4 •S 4834 IS mining or production, processing, refining, transpor- 1 tation (including pipelines transporting gas, oil, or 2 products thereof), distribution, or marketing of, or 3 the construction or operation of plants for the proc- 4 essing or refining of, coal, petroleum, natural gas, or 5 any derivative of coal, petroleum, or natural gas that 6 is used for fuel. 7 ‘‘(2) FOSSIL FUEL RESOURCE.— 8 ‘‘(A) IN GENERAL.—The term ‘fossil fuel 9 resource’ means all forms of coal, oil, and gas. 10 ‘‘(B) INCLUSIONS.—The term ‘fossil fuel 11 resource’ includes— 12 ‘‘(i) bitumen from oil sands; 13 ‘‘(ii) kerogen from oil shale; 14 ‘‘(iii) liquids manufactured from coal; 15 ‘‘(iv) coal bed methane; 16 ‘‘(v) methane hydrates; 17 ‘‘(vi) light oil derived from shale or 18 other formations; 19 ‘‘(vii) natural gas liquids; and 20 ‘‘(viii) all conventionally and uncon- 21 ventionally produced hydrocarbons.’’. 22 VerDate Sep 11 2014 22:12 Oct 31, 2020 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S4834.IS S4834 pbinns on DSKJLVW7X2PROD with BILLS 5 •S 4834 IS SEC. 3. PROHIBITION ON FOREIGN ASSISTANCE THAT 1 WOULD SUPPORT FOSSIL FUEL ACTIVITY. 2 The United States may not provide any loan, insur- 3 ance, guarantee, or extension of financial or technical as- 4 sistance to any country or entity for any fossil fuel activity 5 (as defined in section 2001(d) of the International Finan- 6 cial Institutions Act, as added by section 2), including 7 through the United States International Development Fi- 8 nance Corporation, the Export-Import Bank of the United 9 States, the Trade and Development Agency, the United 10 States Agency for International Development, or the Mil- 11 lennium Challenge Corporation. 12 Æ VerDate Sep 11 2014 22:12 Oct 31, 2020 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\S4834.IS S4834 pbinns on DSKJLVW7X2PROD with BILLS