Sustainable International Financial Institutions Act of 2025
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Rep. Huffman, Jared [D-CA-2]
ID: H001068
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5. Conference: If both chambers pass different versions, a conference committee reconciles the differences.
6. Presidential Action: The President can sign the bill into law, veto it, or take no action.
7. Became Law: If signed (or if Congress overrides a veto), the bill becomes law!
Bill Summary
Another masterpiece of legislative theater, courtesy of the 119th Congress. Let's dissect this farce, shall we?
**Main Purpose & Objectives:** The Sustainable International Financial Institutions Act of 2025 (HR 5952) claims to promote a clean energy economy by leveraging the United States' influence in international financial institutions (IFIs). The bill's primary objective is to strong-arm these IFIs into abandoning fossil fuel projects and investing in "clean" energy initiatives. How noble.
**Key Provisions & Changes to Existing Law:** The bill amends the International Financial Institutions Act, requiring U.S. Executive Directors at IFIs to:
1. Vote against policies supporting new fossil fuel capacity. 2. Channel assistance toward countries building clean energy systems. 3. Phase out funding for internal combustion engines by 2031.
It also introduces a reduction in U.S. contributions to IFIs that invest in fossil fuels, with the amount withheld deposited into an escrow account until the institution complies with the bill's requirements.
**Affected Parties & Stakeholders:** The usual suspects:
* International financial institutions (IFIs) * Countries and entities receiving funding from IFIs * The U.S. Treasury Department (responsible for enforcing the bill's provisions) * Environmental groups and climate change activists (who will likely claim victory, despite this bill being a mere Band-Aid on a bullet wound)
**Potential Impact & Implications:** Let's not be naive here. This bill is a symbolic gesture, a PR stunt designed to appease the environmental lobby while doing little to address the root causes of climate change.
In reality:
* The bill will likely lead to increased costs for developing countries, which may struggle to transition to "clean" energy. * It may also create new opportunities for corruption and cronyism, as governments and corporations jockey for position in the "clean" energy market. * The escrow account mechanism is a farce, allowing the U.S. government to claim it's taking action while actually doing nothing to address the underlying issues.
In short, this bill is a classic case of legislative placebo: it makes politicians feel good, but accomplishes little. It's a symptom of a deeper disease – the inability of governments to tackle complex problems with meaningful solutions. Instead, they opt for shallow, symbolic gestures that only serve to further entrench the status quo.
Now, if you'll excuse me, I have better things to do than waste my time on this legislative quackery.
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đź’° Campaign Finance Network
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Project 2025 Policy Matches
This bill shows semantic similarity to the following sections of the Project 2025 policy document. Higher similarity scores indicate stronger thematic connections.
Introduction
— 389 — Department of Energy and Related Commissions policy and how it affects foreign policy, as well as the international energy landscape and how it affects U.S. national and economic security. l Develop a strategy for identifying and accessing resources and advancing U.S. economic interests. America has recently become a net energy exporter, but it still imports large amounts of essential energy resources such as oil and natural gas as well as such materials as uranium (including yellowcake), lithium, certain rare earth minerals, and energy generation and transmission components and technology. The United States needs a clear understanding of its global energy and economic interests and a strategy for protecting them. l Oppose “climate reparations.” During the November 2022 United Nations climate conference in Egypt, the Biden Administration and other “developed” countries agreed to provide “climate reparations” to developing countries for the harm allegedly caused by the developed countries’ use of fossil fuel.76 A reparations slush fund administered by a non-U.S. organization provides no assurance that U.S. interests will be protected and should not be supported in any form. New Policies l Identify U.S. energy security interests and promote American energy dominance. To this end, IA should work closely with the DESAS Office of Policy on the National Energy Security Strategy. l Strengthen the new DESAS vis-à -vis the Department of State. The State Department’s Bureau of Energy Resources has generally excluded IA from serious discussions of international affairs to the detriment of DOE and broader interagency policy development. In addition, DOE embassy representatives are generally excluded from giving policy advice to senior diplomats and are used merely as sources of information instead of being active advocates for the Secretary’s priorities. The Secretary of Energy is a senior member of the President’s National Security Council and should function as such. The DOE’s Deputy Secretaries, Under Secretaries, and Assistant Secretaries should be guaranteed representation at all Deputies and Policy Coordination Committee meetings. In addition, senior political and career staff should hold positions on the NSC staff equivalent to their counterparts at State, Defense, Treasury, and the Intelligence Community (IC). DESAS billets should replace State Department Bureau of Energy Resources billets at the relevant posts worldwide. — 390 — Mandate for Leadership: The Conservative Promise l Stop “climate reparations.” The President should refuse to provide climate reparations under an unratified treaty, and IA should encourage other countries to reconsider their desire to provide reparations. ARCTIC ENERGY OFFICE (AE) Mission/Overview AE was established during the Trump Administration to create a central office overseeing U.S. Arctic interests in Alaska and the other Arctic nations in response to the growing strategic sensitivity of this geographic region and the natural resources it contains. It “serves as the principal advisor to the Under Secretary on all domestic Arctic issues, including energy, science, and national security.”77 Needed Reforms In October 2022, the Biden Administration released its National Strategy for the Arctic Region.78 Although recognizing national security threats in the Arctic, it also focuses heavily on climate change, sustainability, and international cooperation. The United States must establish a strategic plan to promote its national security, energy, and economic interests in the Arctic. An analysis and plan to support the responsible development of Alaska’s energy assets should be a priority. New Policies l Defend American interests in the Arctic Circle. The next Administration needs to define American strategic and economic interests in the Arctic Circle. AE should help to identify those interests, as well as threats posed by countries like Russia and China, and develop appropriate policy options for the President’s consideration. l Ensure that AE is clearly focused. In particular, this means identifying U.S. energy interests in the Arctic Circle, identifying foreign government and commercial interests and activity in the region, and ensuring that the United States does not forgo important energy and national security interests in the Arctic. l Expand AE’s operations in Alaska. AE’s operations in Alaska should be expanded to encompass broader national energy security interests in the region including rare earths, oil, and natural gas. AE should also be the lead for DOE Antarctic operations as a counter to growing Russian and Chinese interest in Antarctic resources.
Introduction
— 389 — Department of Energy and Related Commissions policy and how it affects foreign policy, as well as the international energy landscape and how it affects U.S. national and economic security. l Develop a strategy for identifying and accessing resources and advancing U.S. economic interests. America has recently become a net energy exporter, but it still imports large amounts of essential energy resources such as oil and natural gas as well as such materials as uranium (including yellowcake), lithium, certain rare earth minerals, and energy generation and transmission components and technology. The United States needs a clear understanding of its global energy and economic interests and a strategy for protecting them. l Oppose “climate reparations.” During the November 2022 United Nations climate conference in Egypt, the Biden Administration and other “developed” countries agreed to provide “climate reparations” to developing countries for the harm allegedly caused by the developed countries’ use of fossil fuel.76 A reparations slush fund administered by a non-U.S. organization provides no assurance that U.S. interests will be protected and should not be supported in any form. New Policies l Identify U.S. energy security interests and promote American energy dominance. To this end, IA should work closely with the DESAS Office of Policy on the National Energy Security Strategy. l Strengthen the new DESAS vis-à -vis the Department of State. The State Department’s Bureau of Energy Resources has generally excluded IA from serious discussions of international affairs to the detriment of DOE and broader interagency policy development. In addition, DOE embassy representatives are generally excluded from giving policy advice to senior diplomats and are used merely as sources of information instead of being active advocates for the Secretary’s priorities. The Secretary of Energy is a senior member of the President’s National Security Council and should function as such. The DOE’s Deputy Secretaries, Under Secretaries, and Assistant Secretaries should be guaranteed representation at all Deputies and Policy Coordination Committee meetings. In addition, senior political and career staff should hold positions on the NSC staff equivalent to their counterparts at State, Defense, Treasury, and the Intelligence Community (IC). DESAS billets should replace State Department Bureau of Energy Resources billets at the relevant posts worldwide.
Introduction
— 378 — Mandate for Leadership: The Conservative Promise Budget The FY 2023 budget request for FECM was approximately $893.2 million.40 FECM’s requested appropriation can be compared to the more than $4.0 billion requested for the Office of Energy Efficiency and Renewable Energy.41 The disparity in funding demonstrates how DOE’s research activities and substantial portions of its organizational structure are now focused entirely on the reduction of CO2 emissions rather than energy access or energy security. OFFICE OF ENERGY EFFICIENCY AND RENEWABLE ENERGY (EERE) Mission/Overview The Office of Energy Efficiency and Renewable Energy traces its roots to the Energy Policy and Conservation Act of 1975,42 but most of its programs today are rooted in the Energy Policy Act of 2005.43 Under the Biden Administration, EERE’s mission is “to accelerate the research, development, demonstration, and deployment of technologies and solutions to equitably transition America to net- zero greenhouse gas (GHG) emissions economy-wide by no later than 2050” and “ensure [that] the clean energy economy benefits all Americans.”44 The office is made up of three “pillars”: energy efficiency, renewable energy, and sustainable transportation. Needed Reforms l End the focus on climate change and green subsidies. Under the Biden Administration, EERE is a conduit for taxpayer dollars to fund progressive policies, including decarbonization of the economy and renewable resources. EERE has focused on reducing carbon dioxide emissions to the exclusion of other statutorily defined requirements such as energy security and cost. For example, EERE’s five programmatic priorities during the Biden Administration are all focused on decarbonization of the electricity sector, the industrial sector, transportation, buildings, and the agricultural sector.45 l Eliminate energy efficiency standards for appliances. Pursuant to the Energy Policy and Conservation Act of 1975 as amended, the agency is required to set and periodically tighten energy and/or water efficiency standards for nearly all kinds of commercial and household appliances, including air conditioners, furnaces, water heaters, stoves, clothes washers and dryers, refrigerators, dishwashers, light bulbs, and showerheads. Current law and regulations reduce consumer choice, drive up costs for consumer appliances, and emphasize energy efficiency to the exclusion of other important factors such as cycle time and reparability. — 379 — Department of Energy and Related Commissions New Policies l Eliminate EERE. The next Administration should work with Congress to eliminate all of DOE’s applied energy programs, including those in EERE (with the possible exception of those that are related to basic science for new energy technology). Taxpayer dollars should not be used to subsidize preferred businesses and energy resources, thereby distorting the market and undermining energy reliability. l Reduce EERE funding. If EERE cannot be eliminated, then the Administration should engage with Congress and the House and Senate Appropriations Committees on EERE’s budget. EERE’s budget was around $1.5 billion a year when the advances were made that led to dramatic cost decreases in wind, solar, and battery technology. In recent years, Congress has appropriated many billions of dollars in excess of EERE’s normal budget (DOE requested more than $4.0 billion for FY 2023).46 It should rescind these excess monies so that DOE is not required to spend them. If funding cannot be reduced, then it should be reallocated to more fundamental research and less toward commercialization and deployment. l Focus on fundamental science and research. If EERE cannot be eliminated, then the Administration should focus on broader and more fundamental energy research, consistent with law. The Biden Administration is too focused on deploying technologies instead of relying on the private sector. Moreover, under the Biden Administration, EERE is too focused on decarbonization and not at all on the cost of energy. l Eliminate energy efficiency standards for appliances. The next Administration should work with Congress to modify or repeal the law mandating energy efficiency standards. Before (or in lieu of) repealing the law, there are steps the agency can take to refocus on the consumer by giving full force to the provisions already in the law that serve to limit regulatory overreach and protect against excessively stringent standards. For example, the Trump DOE prioritized the relatively few appliance regulations that were likely to save consumers the most energy and refrained from those whose modest benefits are unlikely to justify the costs. It also took steps to ensure that any new standards do not compromise product quality or eliminate any features. These and other consumer protections are in the statute but have often been ignored.
About These Correlations
Policy matches are calculated using semantic similarity between bill summaries and Project 2025 policy text. A score of 60% or higher indicates meaningful thematic overlap. This does not imply direct causation or intent, but highlights areas where legislation aligns with Project 2025 policy objectives.