Group files climate complaint against US credit agency over fossil ... - Reuters

Group files climate complaint against US credit agency over fossil fuel loans | Reuters

Group files climate complaint against US credit agency over fossil fuel loans

DUBAI, Dec 5 (Reuters) - An environmental group on Tuesday filed a complaint with an international organization alleging the U.S. export credit agency still invests taxpayer dollars into fossil fuel projects abroad despite U.S. government pledges to end such investments.

The complaint filed by Friends of the Earth to the Organisation for Economic Co-operation and Development alleges that the U.S. Export-Import Bank's (EXIM) financing of large oil and gas projects abroad violates the Biden administration's promise to stop international public finance for fossil fuels.

It says EXIM has not taken substantive action to reduce its portfolio of greenhouse gas emitting projects and transactions, and does not disclose the full scope of emissions that would arise as a result.

EXIM in a statement to Reuters said it seeks to align with the administration’s climate agenda while complying with a rule that prohibits it from discriminating based solely on industry, sector or business.

"Any change to EXIM’s Charter must be passed through Congressional action," the statement said.

EXIM Chair Reta Jo Lewis visits Dubai this week as part of the U.S. delegation to the COP28 climate summit, where the United States is supporting a phase down of fossil fuels.

Friends of the Earth said that from 2017 to 2021, EXIM financed $5.78 billion in fossil fuels projects compared to $120 million for clean energy.

It said the bank was also considering new fossil fuel projects, including a large oil refinery in Indonesia, an oil project in the Bahamas, gas turbines in Iraq, and the purchase of liquefied natural gas by commodity trading giant Trafigura.

"The agency has repeatedly failed to take responsibility for how its support of fossil fuels impacts communities and worsens climate change," Kate DeAngelis, senior international finance program manager at Friends of the Earth, said.

The group said the OECD had the power to force a mediation process if complaints were upheld.

The OECD did not reply immediately to a request for comment.

Reporting by Valerie Volcovici; editing by Barbara Lewis

Our Standards: The Thomson Reuters Trust Principles.

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