Sponsors (7)
Official title: Support financing of affordable and reliable energy projects by international financial institutions, and for other purposes.
Introduced May 15, 2025 by John A. Barrasso · Last progress May 15, 2025
The bill aims to expand and accelerate international financing for energy projects (including fossil fuels) to boost energy development and U.S. leverage, but does so at the cost of greater climate emissions, reduced development funding for other priorities, and increased financial and reputational risk to taxpayers and institutions.
Energy developers, utilities, and related businesses would gain increased access to multilateral financing for coal, oil, natural gas, and civil nuclear projects, potentially unlocking more capital for energy development and utility investment.
U.S. taxpayers and state governments would gain greater leverage over international financial institutions (by conditioning IBRD funding at ≤50% until policy change), enabling the U.S. to push for faster approvals of energy projects deemed important for energy security.
Taxpayers and financial institutions would benefit from increased interagency coordination and annual reporting on restrictive IFI policies and U.S. efforts, improving transparency about U.S. strategy to promote energy financing abroad.
Populations worldwide and U.S. taxpayers would face heightened global greenhouse gas emissions and weaker international climate mitigation if U.S. efforts reduce support for IFI policies that restrict fossil-fuel financing.
Low-income individuals and state governments could see fewer resources for development, poverty reduction, health, and infrastructure projects if IBRD disbursements are capped at 50% pending policy changes, reducing funding available for non-energy development needs.
U.S. taxpayers and financial institutions could face increased credit and reputational risk from promoting financing for coal and upstream oil/gas projects, potentially exposing public and private actors to losses or backlash.
Based on analysis of 2 sections of legislative text.
Directs U.S. representatives at multilateral development banks to oppose IFI restrictions on financing coal, oil, natural gas, and civil nuclear projects and conditions some IBRD funds on policy reversal.
Directs the U.S. Treasury Secretary to use U.S. voice, vote, and influence at a set of international financial institutions (IFIs) to oppose and reverse policies that restrict or ban financing for coal, oil, natural gas, and civil nuclear energy projects. It also limits certain IBRD funds (no more than half of amounts available for IBRD after FY2025) from being obligated or spent until the Treasury certifies that IBRD has rescinded those restrictive policies and adopted a policy promoting such financing. Requires an interagency review and an initial report within 180 days listing restrictive IFI policies, U.S. efforts to change them, recommended steps to promote international financing of these energy projects, and annual follow-ups. Defines covered IFIs, the term "Secretary" (Treasury), and the congressional committees that will receive certifications and reports.