Domenici Statement on World Bank Climate Investment Funds

Domenici Legislation Would Create Similar American Clean Energy Bank

July 1, 2008
04:49 PM
          ALBUQUERQUE – U.S. Senator Pete Domenici, ranking member of the Senate Energy and Natural Resources Committee, today issued the following statement regarding today’s formal approval by the World Bank to create the Climate Investment Funds (CIF), a pair of international investment instruments designed to provide scaled-up funding to help developing countries mitigate rises in greenhouse gas emissions.
            Domenici is the author of the Clean Energy Investment Bank Act of 2008 (S.2730), which will establish a government corporation specifically dedicated to facilitating investment in clean energy projects in the United States. 
            “I am pleased that the World Bank has formally approved the creation of the Climate Investment Funds (CIF), which will provide financial resources to developing nations that are struggling to develop new clean energy technologies. 
            “The World Bank is relying on donor nations to provide up to $5 billion for the CIF.  However, to this point, the United States has not authorized any contribution to the funds, reportedly because House Democrats have objections to the possibility of clean coal projects receiving assistance.  Since the development of clean coal technology is a critical component of our efforts to combat global climate change, I certainly hope that the U.S. will not be an impediment to the success of these new funds.  An all-or-nothing approach to developing clean energy technologies here at home and abroad ignores the economic and technological reality of the energy challenges we face.
            “I also believe that our nation should launch our own, domestic funding source for clean energy, which is why I introduced legislation to create a Clean Energy Investment Bank in March. 
“My legislation would create a bank that would operate in a fashion similar to the U.S. Export-Import Bank and the Overseas Private Investment Corporation, but will focus on domestic investment activities to encourage financing for clean energy projects.  The goal of the bank will be to reduce the overall cost of clean energy projects in order to facilitate their commercialization.
“With the full resources of a large-scale financial institution, a Clean Energy Investment Bank could help finance technology that will allow us to reduce dependence on foreign oil.  I hope my idea receives serious consideration as we continue to find ways to meet an ever-increasing demand for energy while reducing greenhouse gas emissions.”