Climate campaigners on Thursday said that within days, President Joe Biden's promises to end public finance for fossil fuel projects may prove empty if plans that the U.S. International Development Finance Corporation has indicated it has for an LNG project in Poland come to fruition.
The DFC, which oversees U.S. investments in development projects in lower- and middle-income countries, listed on its pending project list on May 23 a $500 million guarantee to support the Polish oil and gas company PKN Orlen to increase its liquefied natural gas (LNG) imports.
The pending transaction was listed ahead of the DFC's board meeting, which is scheduled for June 7.
Oil Change International (OCI) noted that the LNG listing was removed on May 30, but the "public information summary" remained live as of Thursday, suggesting the board could still approve the project.
The project, which would involve Wall Street firm Goldman Sachs helping the company to increase its imports, would be in direct contradiction to President Joe Biden's statement at the 26th United Nations Climate Change Conference in 2021 that his administration would end public finance for fossil fuel development after 2022.
"President Biden has cited his promise to end international public funding for fossil fuels as a sign of his ongoing commitment to climate leadership, even as he boosts fossil fuels and breaks many of his core climate promises at home," said Collin Rees, U.S. program manager at OCI. "The Development Finance Corporation approving this dirty project would show once and for all these claims are nothing but empty words."
"LNG is a false solution that will intensify the climate crisis and increase the world's dependence on fossil fuels."
LNG is gas that has been cooled and liquefied after being extracted by drilling or fracking. As Common Dreams reported in April, 116 climate action groups wrote to Biden ahead of the Group of 7 (G7) climate and energy meeting in Japan last month to warn that "the global LNG boom" must be stopped.
Campaigners say the continued expansion of LNG would harm communities that lie near fracking and drilling sites as well as LNG export terminals, while disregarding the warnings of scientists and energy experts who are unequivocal in their warnings that new fossil fuel extraction projects have no place on a pathway to keeping planetary heating under 2°C above preindustrial temperatures.
"If approved, this $500 million climate-wrecking handout would further threaten the air, land, and water of frontline communities in the United States and in Poland, making a mockery of Biden's purported commitment to environmental justice," said Rees. "A rapid buildout of 100% renewable energy is the only pathway to global energy security."
The DFC's potential approval of the project would mark the second time in less than a month that the Biden administration has agreed to finance new fossil fuel development. In May the U.S. Export-Import Bank approved nearly $100 million for the Balikpapan oil refinery in Indonesia.
U.S. Ambassador to Japan Rahm Emanuel also spoke at a recent Alaska Sustainable Energy Conference about a proposal for an 807-mile gas pipeline across Alaska and an LNG export terminal that he claimed would be in the United States' economic and national security interests.
"LNG is a false solution that will intensify the climate crisis and increase the world's dependence on fossil fuels," wrote Kay Brown, Arctic policy director for Pacific Environment, at Common Dreams on Thursday. "LNG is methane compressed and chilled to make it easier to transport. Methane emissions are 80 times more damaging to the climate than carbon dioxide, in the short term."
While Biden said at COP26 and at the G7 meeting that he is committed to ending public financing for fossil fuel projects past 2022, the White House has not released guidance outlining how that promise will be kept.
"Biden's refusal to publish public guidance upholding the international fossil fuel pledge is enabling DFC to keep funding dirty fossil fuel expansion," said Rees. "In removing this massive handout to the U.S. LNG industry from its pending project list, DFC is following Biden's lead and keeping ongoing fossil fuel support hidden from the public eye."
