A federal financial institution that funds initiatives abroad voted Thursday to place $500 million towards an oil and fuel challenge in Bahrain, a transaction that critics mentioned was out of step with President Biden’s local weather commitments.
Simply days earlier than the vote, six lawmakers had urged the financial institution, the Export-Import Financial institution of the US or ExIm, to not transfer forward with the financing, given the challenge’s destructive results on the local weather. “We can not afford to have ExIm undermine home and worldwide local weather progress,” lawmakers led by Senator Jeff Merkley, Democrat of Oregon, mentioned in a letter to the financial institution’s board of administrators final week.
The financial institution mentioned that the financing, within the type of mortgage ensures, was in line with its mission to bolster American exports and jobs. The brand new drilling in Bahrain might imply profitable contracts for American engineering and construction-management corporations, the financial institution mentioned. The challenge will embrace measures to maintain greenhouse gases in examine, it mentioned in an announcement.
The Bahrain deal comes simply months after the US joined almost 200 different nations in a promise to transition away from fossil fuels, the burning of which is dangerously overheating the planet. It additionally comes as Mr. Biden is working to shore up help from climate-minded voters as he runs for re-election.
In February, plans to finance the Bahrain initiatives prompted two of the financial institution’s local weather advisers to resign. And Mr. Biden’s aides have expressed concern in regards to the route of the financial institution, which has constantly flouted a 2021 presidential order that authorities businesses cease financing carbon-intensive initiatives abroad.
The Bahrain challenge is one in every of a number of controversial abroad fossil gasoline ventures that ExIm Financial institution is presently contemplating. Additionally being thought-about are a pure fuel export challenge in Papua New Guinea and an offshore pipeline in Guyana, alongside some initiatives associated to renewable power like a zinc-lead mine in Greenland.
Between 2017 and 2021 the financial institution supplied almost $6 billion in financing for fossil gasoline initiatives and $120 million for clear power, based on a tally by the Views Local weather Group consultancy and the nonprofit group Oxfam.
