Abby L. Harvey
GHG Monitor
8/1/2014
Sen. Joe Manchin (D-W.Va.) this week pulled language from a bill to reauthorize the Export-Import Bank that would have reversed a restriction placed on the bank preventing the financing of coal plants unless they use carbon capture technology. The restriction in question, which the Ex-Im Bank approved in December, consisted of a set of supplemental guidelines for high carbon intensity projects. The guidelines state that “under Ex-Im Bank’s environmental policy, the Bank will not provide support for exports for high carbon intensity plants, except for high carbon intensity plants that (a) are located in the world’s poorest countries, utilize the most efficient coal technology available and where no other economically feasible alternative exists, or (b) deploy carbon capture and sequestration (CCS).” Manchin’s office did not respond to request for comment this week.
Manchin’s original bill would have allowed the bank to fund these high carbon plants but it was met with opposition from fellow Democrats Barba Boxer (Calif.) and Sheldon Whitehouse (R.I.) as well as environmental groups. In a letter sent earlier this month, a group of 13 environmental organizations, called on lawmakers to oppose the provision reversing the bank’s policy. “In recent years, the Export-Import Bank had dramatically increased financing for coal projects, but fortunately, the Bank’s climate policy has begun to curb this harmful practice. However, if Congress slashes enforcement of this policy, it is expected that the Bank’s coal subsidies will increase even more,” the groups wrote.
