{"id":18815,"date":"2024-03-14T11:30:35","date_gmt":"2024-03-14T15:30:35","guid":{"rendered":"https:\/\/www.merkley.senate.gov\/?p=18815"},"modified":"2024-04-19T12:36:52","modified_gmt":"2024-04-19T16:36:52","slug":"merkley-huffman-colleagues-urge-exim-bank-to-not-fund-expansion-of-oil-and-gas-drilling-in-bahrain","status":"publish","type":"post","link":"https:\/\/www.merkley.senate.gov\/es\/merkley-huffman-colleagues-urge-exim-bank-to-not-fund-expansion-of-oil-and-gas-drilling-in-bahrain\/","title":{"rendered":"Merkley, Huffman, Colleagues Urge EXIM BANK to Not Fund Expansion of Oil and Gas Drilling in Bahrain"},"content":{"rendered":"

Washington, D.C. \u2013 Oregon\u2019s U.S. Senator Jeff Merkley & U.S. Representative Jared Huffman (D-CA-02) led their colleagues in sending a letter to the Export-Import Bank of the United States (EXIM) Board of Directors to urge EXIM not to move forward providing a long-term loan or financial guarantee over $100 million to Bapco Energies to expand oil and gas drilling in Bahrain ahead of a critical board vote today. Their letter was signed by Senators Bernie Sanders (I-VT), Edward J. Markey (D-MA), Peter Welch (D-VT), and Representative Ro Khanna (D-CA-17).<\/p>\n\n\n\n

\n

‘\u201cIn 2022, the International Energy Agency was clear that the world cannot make \u2018new investments in fossil fuel supply projects\u2019 if it wants to limit global warming to 1.5\u00b0C. The Ba<\/a>hrain oil and gas expansion project would be just the most recent instance of the Export-Import Bank of the United States (EXIM) financing a project that runs counter to Biden Administration\u2019s climate change policy and President Biden\u2019s climate directive,\u201d el <\/strong>lawmakers\u2019 letter states.<\/strong><\/p>\n<\/blockquote>\n\n\n\n

\n

\u201cThe world is in the midst of a climate crisis that is already having devastating impacts on millions of people across the globe. We cannot afford to have EXIM undermine domestic and international climate progress by financing projects that worsen this crisis. We urge you to take EXIM\u2019s mandate to consider the environmental impacts of projects seriously, and to start by disapproving new funding for oil and gas drilling in Bahrain,\u201d the lawmakers urge.<\/strong><\/p>\n<\/blockquote>\n\n\n\n

El texto completo de la carta se puede encontrar aqu\u00ed<\/a> y sigue a continuaci\u00f3n:<\/p>\n\n\n\n

Dear Chair Lewis, Ms. DelZoppo Pryor, Director Bachus, Director Herrnstadt, Secretary Raimondo and Ambassador Tai,<\/p>\n\n\n\n

On February 8, you notified Congress of your intent to potentially provide a long-term loan or financial guarantee in excess of $100 million to Bapco Energies in order to expand oil and gas drilling in Bahrain. We write today to urge you not to move forward with financing this project because of its negative impacts on the climate.<\/p>\n\n\n\n

In 2022, the International Energy Agency was clear that the world cannot make \u201cnew investments in fossil fuel supply projects\u201d if it wants to limit global warming to 1.5\u00b0C. The Bahrain oil and gas expansion project would be just the most recent instance of the Export-Import Bank of the United States (EXIM) financing a project that runs counter to Biden Administration\u2019s climate change policy and President Biden\u2019s climate directive. In 2023, EXIM provided $901 million in new direct fossil fuel finance, including for an oil refinery in Indonesia, an oil project in the Bahamas, Freeport liquefied natural gas in Texas, and gas turbines in Iraq. EXIM is also currently considering fossil fuel projects in Papua New Guinea and Guyana.<\/p>\n\n\n\n

EXIM is financing these projects despite Congress being clear that environmental impacts should be a determinative part of its project evaluation. When Congress reauthorized EXIM\u2019s charter in 2019, it reaffirmed EXIM\u2019s responsibility to review projects for environmental impacts, including the \u201ceffects upon the global commons,\u201d such as the shared global carbon budget. Congress was explicit that EXIM\u2019s procedures \u201cshall permit the Board of Directors, in its judgment, to withhold financing from a project for environmental reasons.\u201d<\/p>\n\n\n\n

EXIM\u2019s charter non-discrimination provisions do not supersede the charter\u2019s environmental policies and procedures. The statutory language is clear, the non-discrimination prohibition starts with \u201cexcept as provided in this Act.\u201d Further, the non-discrimination prohibition is limited to decisions made \u201csolely on the industry, sector, or business that the application concerns,\u201d so it would not preclude EXIM from evaluating a project\u2019s environmental impacts. To interpret EXIM\u2019s charter otherwise not only goes against the plain text of the charter but would lead to absurd results. EXIM would be empowered to consider environmental impacts when multiple industries are responsible for an environmental harm, but prohibited when a single industry is responsible for the lion\u2019s share of the harm. More practically, an unduly broad interpretation of EXIM\u2019s non- discrimination term would functionally render EXIM\u2019s environmental policies and procedures null and void for the greatest environmental challenge the world has ever faced.<\/p>\n\n\n\n

EXIM\u2019s Environmental and Social Impact Assessment for the Bahrain project is woefully inadequate. Climate change is listed as a \u201cpotentially significant environmental and social issue identified in relation to the project,\u201d but the publicly available assessment does not cover it \u201cdue to the transboundary and global impact.\u201d The separate Climate Change Risk Assessment is still not publicly available, and it does not evaluate the Bahrain project in the context of the Paris goals. We urge you to update your Environmental and Due Diligence procedures and guidelines to ensure that you are conducting robust and meaningful analysis that considers Paris Agreement targets and that informs EXIM\u2019s final financing decisions.<\/p>\n\n\n\n

It also appears that EXIM has moved to marginalize its Advisory Subcommittee on Climate. It is reported the Council has not been allowed to make public its recommendations for the agency \u2013 a concerning lack of transparency. Two members have reportedly stepped down in protest and others have reportedly considered the same. This is deeply troubling and signals that EXIM is not serious about considering climate chaos in its financing decisions, nor following its congressionally mandated directive to consider environmental impacts.<\/p>\n\n\n\n

The world is in the midst of a climate crisis that is already having devastating impacts on millions of people across the globe. We cannot afford to have EXIM undermine domestic and international climate progress by financing projects that worsen this crisis. We urge you to take EXIM\u2019s mandate to consider the environmental impacts of projects seriously and to start by disapproving new funding for oil and gas drilling in Bahrain.<\/p>\n\n\n\n

###<\/p>","protected":false},"excerpt":{"rendered":"

Washington, D.C. \u2013 Oregon\u2019s U.S. Senator Jeff Merkley & U.S. Representative Jared Huffman (D-CA-02) led their colleagues in sending a letter to the Export-Import Bank of the United States (EXIM) Board of Directors to urge EXIM not to move forward providing a long-term loan or financial guarantee over $100 million to Bapco Energies to expand […]<\/p>\n","protected":false},"author":16,"featured_media":17053,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[24],"tags":[38,45],"class_list":["post-18815","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-press-releases","tag-foreign-policy-and-national-security","tag-tackling-climate-change"],"acf":[],"yoast_head":"\nMerkley, Huffman, Colleagues Urge EXIM BANK to Not Fund Expansion of Oil and Gas Drilling in Bahrain - Merkley<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.merkley.senate.gov\/es\/merkley-huffman-colleagues-urge-exim-bank-to-not-fund-expansion-of-oil-and-gas-drilling-in-bahrain\/\" \/>\n<meta property=\"og:locale\" content=\"es_MX\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Merkley, Huffman, Colleagues Urge EXIM BANK to Not Fund Expansion of Oil and Gas Drilling in Bahrain - 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