Undermining its own credibility in Copenhagen and the integrity of its pledge to phase out support for fossil fuels, an agency of the Obama Administration, the United States Export-Import Bank, has reportedly approved $3 billion in financing for an Exxon led consortium constructing a liquefied natural gas plant on Papua New Guinea.
The Obama Administration has yet to commit to any specific amount of financing for developing nations to transition to a clean energy economy and adapt to the impacts of climate change.
“Does the Obama Administration seriously expect other nations to believe that it can’t find money to fund international efforts to build a clean energy economy and help vulnerable communities adapt to climate change when they’re still giving billions to Exxon?” said Steve Kretzmann of Oil Change International
Doug Norlen, Policy Director for Pacific Environment added, “How can other governments take the U.S climate change commitments seriously if it is financing the increase of emissions through such fossil fuel projects?”
The Administration was also instrumental in the recent G20 pledge to end fossil fuel subsidies, but has not even instructed agencies within its own Administration to stop that financing. Just two weeks ago, climate and development coalitions in the United States, including USCAN and InterAction, called on the Obama Administration to immediately end fossil fuel subsidies via agencies of the Administration , including the US Export-Import Bank.
“Exxon made more than $45 billion last year, making it the most profitable corporation on the planet. This is the last place that taxpayer support should be going. The Administration should immediately reverse this decision and immediately devote this money and more to international climate finance” said Kretzmann.
Details of the deal, which has not yet been announced publicly, are set to be announced this week. The story was initially reported by Bloomberg news in Washington.