Advocates Urge Federal Government to Invoke Its Power Stop Funding Overseas Climate-Changing Projects

WASHINGTON– Today Friends of the Earth and the Global Law Alliance for Animals and the Environment formally requested that the White House and the U.S. State Department instruct the Export-Import Bank (EXIM) to stop financially supporting activities and projects that are fueling the climate crisis. Although the Biden Administration has committed to ending all federal funding for overseas fossil fuel projects, EXIM continues to undermine this crucial assurance by providing billions in public funds to fossil-fuel projects worldwide.

This comes as EXIM informs Congress this week of its consideration of a $743 million in support for a petrochemical project in Malaysia, which is opposed by Friends of the Earth and partners. If approved, this funding brings EXIM’s support for fossil fuels to almost $2.2 billion since May 2023.

“A commitment from President Biden is meaningless without requisite action,” said Erich Pica, President of Friends of the Earth. “This is where the rubber meets the road. If President Biden’s climate commitments are to be taken seriously, his administration must take immediate, meaningful steps that stop EXIM from supporting polluting industries.”

The administration holds this authority pursuant to a section of EXIM’s charter, referred to as the Chafee Amendment, which allows the President to instruct application denials in the national interest, including environmental protection.  Stopping this support will not only advance the Biden Administration’s climate goals, but it will no doubt advance U.S. policies to protect the environment, human rights, national security, and the global financial system.

According to Erica Lyman, Clinical Professor of Law and Director of the Global Law Alliance at Lewis & Clark Law School, “Administrations in the past have utilized the Chafee Amendment when national interests hang in the balance, and the catastrophic impacts of climate change are among the worst human rights, environmental, and national security challenges we face. The administration now has an important opportunity to continue to stand by its climate commitments to end federal funding for overseas fossil fuel projects.”

Contact: Shaye Skiff, Friends of the Earth, [email protected]