Oxfam calls for a green overhaul of the US Export-Import Bank
oxfamamerica.org
oxfamamerica.org
As mounting climate concerns cause extreme weather events, & global efforts intensify to keep warming below 1.5°C, Oxfam calls on the Export-Import Bank of the United States (EXIM) to cease funding fossil fuel projects to instead champion just & clean energy initiatives.
In a new research report published today, “Alignment of the United States Export-Import Bank with the US climate & development policy objectives,” Oxfam America & Perspectives Climate Research found that EXIM has financed hundreds of fossil fuel projects globally since its founding & continues to finance the most climate damaging sectors: at least 60% of its current $40+ billion portfolio directly supports fossil fuel-producing or dependent sectors like oil, gas, & aviation.
Despite a requirement in its charter to devote 5% of its funding to renewable energy, energy efficiency, & storage, in 2021, only $72 million – or 1.25% of EXIM’s new authorizations – were considered environmentally beneficial, & only 0.2% were for renewable energies.
“EXIM has long dragged its feet on shifting its portfolio to support the energy transition that the US needs, both to remain competitive in the global economy & to stop locking in dirty fossil fuel infrastructure propelling the world to climate catastrophe,” said Daniel Mulé, Oxfam America’s Policy & Program Manager for Just Energy Transition & Extractives. “As countries worldwide rise to meet the challenges of the climate crisis, our American institutions must follow suit.”
EXIM’s trajectory also runs counter to the Biden Administration’s climate goals & leaves the US trailing behind international counterparts like European export credit agencies (ECAs). Denmark’s ECA, for example, has been supporting renewable energies with at least $1 billion, or 75% of its portfolio, every year since 2015.
“Taking the energy transition seriously & fully aligning EXIM with the US climate commitments would be a clear win-win situation for Democrats & Republicans, for exporters & foreign buyers, as well as for present & future generations,” said report co-author Igor Shishlov, Head of Climate Finance at Perspectives Climate Research.
“Phasing out support of the fossil fuel industries & supporting renewables would greatly boost the competitiveness of American clean tech companies, bolster the role of the US as a leader in the global transition towards clean energy, & lead to more & better paying jobs for Americans in the clean energy sector.”