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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3123 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 3123
To require the use of the voice and vote of the United States in
international financial institutions to advance the cause of
transitioning the global economy to a clean energy economy and to
prohibit United States Government assistance to countries or entities
to support fossil fuel activity, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
November 6, 2025
Mr. Merkley (for himself and Mr. Sanders) introduced the following
bill; which was read twice and referred to the Committee on Foreign
Relations
_______________________________________________________________________
A BILL
To require the use of the voice and vote of the United States in
international financial institutions to advance the cause of
transitioning the global economy to a clean energy economy and to
prohibit United States Government assistance to countries or entities
to support fossil fuel activity, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Sustainable International Financial
Institutions Act of 2025''.
SEC. 2. CLEAN ENERGY AND CLIMATE JUSTICE AT INTERNATIONAL FINANCIAL
INSTITUTIONS.
The International Financial Institutions Act (22 U.S.C. 262c et
seq.) is amended by adding at the end the following:
``TITLE XX--CLEAN ENERGY AND CLIMATE JUSTICE
``SEC. 2001. CLEAN ENERGY AND CLIMATE JUSTICE.
``(a) In General.--The United States Executive Directors at the
international financial institutions specified in subsection (c) shall
use the voice and vote of the United States in those institutions--
``(1) to advance the cause of reducing greenhouse gas
emissions and transitioning the global economy to a clean
energy economy, including by seeking to channel assistance
toward countries and entities that are building clean and
sustainable energy systems;
``(2) to oppose any policy reform, investment, loan, or
extension of financial or technical assistance to any country
or entity, that is intended to create, or will have the effect
of creating, new capacity for, or the expansion of, fossil fuel
activity, including--
``(A) any such policy reform, investment, loan, or
extension of assistance that would support the
refurbishment or life extension of existing fossil fuel
capacity; or
``(B) any such investment, loan, or extension of
assistance to a country or entity that would
necessitate, or is predicated upon, increased fossil
fuel capacity outside of the country receiving the
investment, loan, or extension of assistance or the
country in which the entity operates, as applicable,
without regard to whether the activity falls within the
portfolio of the international financial institution
providing the investment, loan, or extension of
assistance; and
``(3) to support the phasing out of funding for internal
combustion engines for passenger vehicles and buses by 2027 in
a way that is sustainable and sensitive to communities in need
of mobility.
``(b) Reduction of Contributions; Deposit in Escrow Account.--
``(1) Determination of expenditure on new fossil fuel
capacity.--In each fiscal year, the Secretary of the Treasury
shall--
``(A) determine the amount of investments, loans,
and extensions of financial or technical assistance
provided by each international financial institution
specified in subsection (c) to any country or entity to
create new capacity for fossil fuel activity during the
preceding fiscal year; and
``(B) reduce the contribution of the United States
to that institution by the amount determined under
subparagraph (A).
``(2) Deposit in escrow account.--The Secretary shall
deposit in an escrow account the amount by which the
contribution of the United States to each international
financial institution specified in subsection (c) is reduced
under paragraph (1)(B).
``(3) Release from escrow account.--The Secretary shall
release to each international financial institution specified
in subsection (c) the amount in the escrow account under
paragraph (2) attributable to contributions to that institution
reduced under paragraph (1)(B) at such time as the Secretary
determines and certifies to Congress that the institution is no
longer providing investments, loans, or extensions of financial
or technical assistance to any country or entity to create new
capacity for fossil fuel activity.
``(4) Reports required.--Not later than 120 days after
depositing amounts into the escrow account under paragraph (2)
attributable to contributions to an international financial
institution specified in subsection (c) reduced under paragraph
(1)(B), and annually thereafter until amounts are released to
that institution under paragraph (3), the Secretary shall
submit to Congress a report that documents investments, loans,
and extensions of financial or technical assistance provided by
that institution to any country or entity to create new
capacity for fossil fuel activity during the preceding fiscal
year.
``(c) International Financial Institutions Specified.--The
international financial institutions specified in this subsection are
the following:
``(1) The International Bank for Reconstruction and
Development.
``(2) The International Development Association.
``(3) The International Finance Corporation.
``(4) The Multilateral Investment Guarantee Agency.
``(5) The African Development Fund.
``(6) The African Development Bank.
``(7) The Asian Development Fund.
``(8) The Asian Development Bank.
``(9) The European Bank for Reconstruction and Development.
``(10) The Inter-American Development Bank.
``(11) The Inter-American Development Bank Invest.
``(12) The North American Development Bank.
``(d) Definitions.--In this section:
``(1) Fossil fuel activity.--The term `fossil fuel
activity' means the exploration, development, mining or
production, processing, refining, transportation (including
pipelines transporting gas, oil, or products thereof),
combustion, distribution, or marketing of, or the construction
or operation of plants for the processing or refining of, coal,
petroleum, natural gas, or any derivative of coal, petroleum,
or natural gas that is used for fuel.
``(2) Fossil fuel.--
``(A) In general.--The term `fossil fuel' means all
forms of coal, oil, and gas.
``(B) Inclusions.--The term `fossil fuel'
includes--
``(i) bitumen from oil sands;
``(ii) kerogen from oil shale;
``(iii) liquids manufactured from coal;
``(iv) coal bed methane;
``(v) methane hydrates;
``(vi) light oil derived from shale or
other formations;
``(vii) natural gas liquids; and
``(viii) all conventionally and
unconventionally produced hydrocarbons.
``(3) Policy reform.--The term `policy reform' means a
process at an international financial institution that changes
rules, regulations, or institutions and results in
incentivizing fossil fuel investment, such as by lowering tax
liability or increasing energy tariffs.''.
SEC. 3. PROHIBITION ON FOREIGN ASSISTANCE THAT WOULD SUPPORT FOSSIL
FUEL ACTIVITY.
The United States may not provide, directly or indirectly (such as
through a financial intermediary), any loan, insurance, guarantee, or
extension of financial or technical assistance, including policy
guidance, to any country or entity for any fossil fuel activity (as
defined in section 2001(d) of the International Financial Institutions
Act, as added by section 2) or a related infrastructure project,
including through the United States International Development Finance
Corporation, the Export-Import Bank of the United States, the Trade and
Development Agency, the United States Agency for International
Development, or the Millennium Challenge Corporation.
<all>
Introduced in Senate
Read twice and referred to the Committee on Foreign Relations.
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