Biden Must Act Now to End US Funds for Fossil Fuels Abroad
With an incoming Trump administration ready to bend to the will of the fossil fuel industry, the Biden administration cannot afford to miss this opportunity to secure its climate legacy.
The Biden administration is running out of time to fulfill its promises to stop using U.S. taxpayer dollars to finance fossil fuel projects overseas. And, as Donald Trump is about to assume the presidency, this is one of the final chances for President Joe Biden to cement his climate legacy.
On November 18, member countries of the Organization for Economic Co-operation and Development (OECD) will meet to consider a proposal to end support from export credit agencies (ECAs) for fossil fuels. This proposal not only has the ability to change the course of the climate crisis by shifting $41 billion USD per year globally out of oil and gas, but is the final opportunity for the outgoing Biden administration to fulfill its pledges made through the Clean Energy Transition Partnership, the International Climate Finance Plan, Executive Order on the Climate Crisis, and via G7 statements in 2022 and 2024.
Since May of 2023, the U.S. Export-Import Bank (EXIM)—our country’s ECA—has approved $2.2 billion in new oil-, gas-, and coal-related projects overseas, including a $500 million loan for an oil and gas drilling project in Bahrain. Additionally, EXIM is considering financing dangerous projects like Mozambique LNG and Papua LNG. With a recent report finding that EXIM was considering financing international fossil fuel projects with lifetime emissions equivalent to roughly 80% of the annual fossil fuel carbon dioxide-equivalent output of the entire United States (or 1,300 coal-fired power plants), this proposal is a critical action President Biden can still take to reduce harmful emissions, stop EXIM from financing dangerous fossil fuel projects abroad, and follow through on his commitments.
President Biden’s reputation as our country’s most pro-climate president is on the line.
The climate crisis has reached a critical point, and it’s unconscionable to keep funneling taxpayer dollars into reckless fossil fuel projects overseas. We are already paying the price for this ongoing investment in fossil fuels—facing record-breaking floods, devastating storms, and deadly extreme weather. The escalating severity of these climate disasters must be a wake-up call our leaders can no longer ignore: Taxpayer financing for overseas fossil fuel projects must end now. And, the support for this climate action is strong: Over 250 civil society organizations have called on OECD member states to end public oil and gas funding.
OECD member states as a whole send $41 billion annually to fossil fuel projects despite the blatant need for a swift transition to clean energy, and the Biden administration’s failure to put forward a position—despite pledging to do this numerous times—has led to deadlock and inaction. The billions of dollars per year that EXIM provides for fossil fuels could be shifted away from fossil fuels to renewable energy projects and be presented as part of a climate finance package at COP29. With the clock ticking for his administration, President Biden must agree to end public financing of foreign fossil fuels via EXIM, follow through on past commitments, and show global climate leadership at COP29 and beyond.
As one of the world’s largest emitters, the United States must use this opportunity to reach our global clean energy agreements and hold ourselves and the rest of the international community accountable for keeping goals such as 1.5°C alive. This meeting is a chance for redemption, to set a global example, and to allow the Biden administration to keep its promise from Glasgow. Taking advantage of this moment will ensure that the progress made over the past four years cannot be undone, will help reduce global emissions, and will help at home by safeguarding tax dollars and fortifying the Biden administration’s record of protecting communities from the climate crisis.
President Biden’s reputation as our country’s most pro-climate president is on the line. With an incoming Trump administration ready to bend to the will of the fossil fuel industry, the Biden administration cannot afford to miss this opportunity to commit the United States to ending taxpayer funding for fossil fuel projects abroad. This decision should not be a difficult one—and we hope that the Biden administration agrees to put communities both here and abroad and the climate over fossil fuel industry interests.
