The U.S. Department of the Treasury released Monday Fossil Fuel Energy Guidance for Multilateral Development Banks (MDBs), advocating MDB investments prioritizing clean energy, innovation, and energy efficiency.
“The United States takes bold, proactive steps to address the climate crisis by working with our international partners to establish a clear path to end Multilateral Development Banks’ support for fossil fuels except in exceptional circumstances while helping developing countries build a strong and sustainable future,” Secretary of the Treasury Janet L. Yellen said.
The guidance is in accordance with President Joe Biden’s Executive Order 14008 – Tackling the Climate Crisis At Home and Abroad.
America serves as the biggest shareholder within the MDB system. The nation is taking a leadership role by advocating for MDB staff to assess clean energy options and efficiency while only considering fossil fuels when less carbon-intensive options are not feasible.
Yellen previously requested MDBs align portfolios with the G7 Leaders Summit on Climate, making innovation a priority to match climate crisis scale and develop capital mobilization rates consistent with broader climate goals.