Group files climate complaint against US credit agency over fossil fuel loans
AN ENVIRONMENTAL group on Tuesday (Dec 5) filed a complaint with an international organisation alleging that the US export credit agency still invests taxpayer dollars into fossil fuel projects abroad despite government pledges to end such investments.
The complaint filed by Friends of the Earth to the Organisation for Economic Co-operation and Development (OECD) alleges that the US Export-Import Bank’s (EXIM) financing of large oil and gas projects abroad violates the Biden administration’s promise to stop international public finance for fossil fuels.
It says EXIM has not taken substantive action to reduce its portfolio of greenhouse gas emitting projects and transactions, and does not disclose the full scope of emissions that would arise as a result.
EXIM said it seeks to align with the administration’s climate agenda while complying with a rule that prohibits it from discriminating based solely on industry, sector or business. “Any change to EXIM’s Charter must be passed through Congressional action,” it added.
EXIM chairperson Reta Jo Lewis will visit Dubai this week as part of the US delegation to the COP28 climate summit, where the US is supporting a phase down of fossil fuels.
The hosting of the summit in the oil-producing United Arab Emirates has drawn criticism, as has the country’s decision to name Sultan Al Jaber, CEO of the state’s oil firm, as COP28 president.
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Jaber has made a point of including the fossil fuel industry at the summit, insisting that oil and gas companies should be part of discussions on tackling climate change.
Friends of the Earth said that from 2017 to 2021, EXIM financed US$5.78 billion in fossil fuel projects, compared to $120 million for clean energy.
It said the bank was also considering new fossil fuel projects, including a large oil refinery in Indonesia, an oil project in the Bahamas, gas turbines in Iraq, and the purchase of liquefied natural gas by commodity trading giant Trafigura.
“The agency has repeatedly failed to take responsibility for how its support of fossil fuels impacts communities and worsens climate change,” said Kate DeAngelis, senior international finance programme manager at Friends of the Earth.
The group said OECD has the power to force a mediation process if complaints were upheld. OECD did not reply immediately to a request for comment.
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