Combating Global Poverty Through Energy Development Act
The Combating Global Poverty Through Energy Development Act would use U.S. influence in international financial institutions (IFIs) to reverse or block rules that limit financing for fossil fuels (coal, oil, natural gas) and civil nuclear energy, and to promote such financing as a tool for expanding affordable, reliable energy in developing countries. The Secretary of the Treasury would instruct the United States’ representatives to oppose restrictive policies at covered IFIs, push to rescind existing restrictions at the World Bank (through the International Bank for Reconstruction and Development) and related institutions, and, until restrictions are lifted and pro-energy financing policies are in place, limit the amount of World Bank funding the U.S. can obligate. The bill also calls for interagency steps to promote international energy financing and requires regular reporting on these efforts and the status of any restrictive rules. The overall aim is to improve energy access in developing countries by making it easier for fossil-fuel and civil nuclear projects to obtain financing through major IFIs.
Key Points
- 1Oppose and seek to rescind restrictions: The Secretary (Treasury) would direct the U.S. Executive Directors of covered(IFIs) to oppose rules that restrict financing for coal, oil, natural gas, and civil nuclear energy projects, and to rescind those rules as of enactment.
- 2Focus on the World Bank and related institutions: The Secretary would push for policy changes at the International Bank for Reconstruction and Development to roll back restrictions on coal power financing, upstream oil and gas exploration/production, and civil nuclear financing.
- 3Funding cap linked to compliance: Beginning in FY 2026 and thereafter, no more than 50% of amounts for the World Bank’s financing may be obligated or expended until the Secretary certifies that restrictive rules have been rescinded and a policy promoting energy financing (including fossil and nuclear) is in effect.
- 4Promote international energy project financing: The bill directs interagency collaboration (across Treasury, State, Energy, and major US export/finance agencies) to identify steps to promote international financing of energy projects to help developing countries access affordable, reliable power.
- 5Reporting requirements: The Secretary must deliver a report within 180 days of enactment and annually thereafter detailing (1) which IFI rules restrict financing of coal/oil/gas/civil nuclear energy, (2) efforts by the U.S. Executive Directors to eliminate those rules, and (3) progress on the steps identified to promote energy financing.
- 6Definitions and scope: The act defines “covered international financial institutions” to include major multilateral banks and funds (e.g., World Bank groups, IMF, regional development banks across the Americas, Europe, Africa, and Asia) and designates the Secretary of the Treasury as the administering official. It also designates the relevant congressional committees (Senate Foreign Relations and House Foreign Affairs) as the “appropriate congressional committees.”