Sponsors (2)
The bill increases U.S. climate diplomacy, finance, and sanctioning tools to protect vulnerable communities and deter deforestation/emissions, but does so at the cost of higher federal spending, greater compliance burdens, potential trade disruptions, and legal/diplomatic risks from broad sanction authorities.
Low-income communities and communities of color would receive greater attention and potential protections against climate harms (heat, flooding, air pollution) through targeted policy and recognition of climate-displaced persons.
U.S. taxpayers and vulnerable countries would benefit from a U.S. commitment to scale international climate finance to over $11 billion annually for adaptation and mitigation abroad.
U.S. national security and communities globally would gain stronger deterrence against actors who drive emissions or illegal deforestation because the bill expands sanctions and other accountability tools.
U.S. taxpayers would face higher federal spending and open‑ended funding obligations (including the $11+ billion target and “such sums as may be necessary”), increasing budgetary pressure or redirecting resources from other priorities.
U.S. businesses and consumers could incur higher costs from trade disruptions, blocked transactions, property/financial sanctions, and supply‑chain interruptions tied to designations of foreign actors.
Utilities, energy companies, banks, and financial institutions would face increased compliance and screening costs, and new regulatory burdens to avoid dealings with designated persons or entities.
Based on analysis of 6 sections of legislative text.
Allows the President to sanction foreign persons who cause major emissions, illegal deforestation, or knowingly misrepresent environmental impacts, and funds OFAC to enforce these sanctions.
Introduced December 1, 2025 by Edward John Markey · Last progress December 1, 2025
Directs the President to use U.S. sanctions authorities to target foreign persons who knowingly or recklessly enable large greenhouse gas emissions, illegal deforestation and losses of carbon sinks, or who fraudulently misrepresent environmental impacts; it also urges diplomatic and financial engagement to curb climate harms and authorizes funding for the Treasury Department’s sanctions office (OFAC) to implement these measures. The bill frames these targeted sanctions as tools to hold accountable actors that undermine efforts to limit warming, harm environmental defenders, or drive community displacement, while calling for scaled international climate finance and cooperation.