The Export-Import Bank of the United States, known as ExIm, has stirred controversy with its recent decision to allocate $500 million towards an oil and gas project in Bahrain. Critics argue that this move contradicts President Biden’s climate commitments and undermines international efforts to combat climate change.
Despite calls from lawmakers, including Senator Jeff Merkley of Oregon, urging the bank to reconsider its financing of the Bahrain project, ExIm defended its decision by stating that it aligns with its mission to support American exports and job creation. The bank highlighted the potential economic benefits for American engineering and construction firms, as well as the inclusion of measures to mitigate greenhouse gas emissions in the project.
This decision comes at a critical time, as the United States and other nations have pledged to transition away from fossil fuels to address the urgent threat of climate change. The move has raised concerns among climate advisers and Biden administration officials, who fear that the bank’s actions could undermine progress towards a cleaner, more sustainable future.
In addition to the Bahrain project, ExIm is also considering financing other controversial fossil fuel ventures overseas, including a natural gas export project in Papua New Guinea and an offshore pipeline in Guyana. These decisions have sparked debate about the bank’s priorities and its compliance with a presidential order to stop funding carbon-intensive projects abroad.
Critics point to data showing that between 2017 and 2021, ExIm provided significantly more financing for fossil fuel projects than for clean energy initiatives. As the bank faces scrutiny over its investment choices, the debate over its role in shaping the future of global energy infrastructure continues to intensify.
