US plans to end development banks’ support for fossil fuels

By Ovunc Kutlu

ANKARA (AA) - The US government plans to end multilateral development banks’ support for fossil fuels, except in exceptional circumstances, according to the Treasury Department.

As part of US President Joe Biden's climate crisis plan, the agency said it advocates banks' investments that prioritize clean energy, innovation and energy efficiency, to meet the goals of the Paris Agreement.

"Today, the US takes bold, proactive steps to address the climate crisis by working with our international partners ... while helping developing countries build a strong and sustainable future," Treasury Secretary Janet Yellen said in the statement.

Under the new guidance for the Treasury, the US will promote ending international financing of carbon-intensive fossil fuel-based energy, while advancing green recovery at the same time.

Direct investment projects that will be opposed by Washington include coal and oil, but there will be narrow support for midstream and downstream natural gas projects when some criteria are met, such as if a project supports conflict-affected or small states.

Other exceptions include lack of economically and technically feasible clean energy alternative; if a project has a significant positive impact on energy security, access or development; and if a project is aligned with goals of the Paris Agreement.