Biden plays catch-up on climate aid

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Apr 21, 2023 View in browser   By Arianna Skibell Presented by President Joe Biden announced a $1 billion infusion to the U.N. Green Climate Fund on Thursday. | Joshua Roberts/Getty Images Nearly a decade after former President Barack Obama pledged $3 billion to help poorer countries on the front lines of climate change, the Biden administration is starting to make good on that commitment. But the U.S. is also falling further behind on President Joe Biden’s own international climate aid promises. Biden announced a $1 billion addition to the United Nations’ Green Climate Fund this week, doubling total U.S. contributions. But the infusion falls far short of Biden’s 2021 pledge to give $11.4 billion a year in climate aid to developing nations by 2024, writes POLITICO’s E&E News reporter Sara Schonhardt. While climate advocates say the funding will help restore U.S. credibility and might encourage other countries to boost their contributions, demand for clean energy and climate adaptation projects is swiftly outpacing available financing. And with Republicans in control of the House, large infusions of cash to meet that need are unlikely. In fact, Biden had to get creative to circumvent recalcitrant lawmakers and make this week’s contribution. The administration drew the funding from the State Department’s economic support fund, which is used to help promote economic or political stability in other countries. Future funding will probably need to go through the appropriations process, a messy and politically charged process at best. Ecosystem of aid The Green Climate Fund is just one part of an increasingly complex landscape of funding for poorer countries that have contributed the least to global warming but stand to bear the brunt of its impacts. Countries agreed last year to create a dedicated fund to compensate nations for damages incurred from rising seas, stronger storms and vanishing food systems. The specifics of the fund are still being negotiated — meaning there is no money to draw on yet — and the United States’ derelict track record has cast doubt on America’s willingness to fund such programs. That means paying into the Green Climate Fund remains politically important, Clemence Landers, a senior policy fellow at the Center for Global Development, told Sara. Unlike commercial loans, the U.N. fund provides money at below-market interest rates, making it an important resource for countries with major debt burdens. Still, some critics say the fund has struggled to get money out the door, so it may not be the best delivery method. That’s just one more issue plaguing island nations and other vulnerable populations.   Thank goodness it's Friday — thank you for tuning in to POLITICO's Power Switch. I'm your host, Arianna Skibell. Power Switch is brought to you by the journalists behind E&E News and POLITICO Energy. Send your tips, comments, questions to askibell@eenews.net.   A message from NRECA: Electric cooperatives are built by and belong to the communities they serve. Motivated by people, not profits, co-ops invest more than $12 billion annually into their local communities. Learn how co-ops are powering lives and empowering communities. #PoweringTomorrow   Listen to today’s POLITICO Energy podcast Today in POLITICO Energy’s podcast: Josh Siegel breaks down why the GOP is linking the debt ceiling fight to energy policy and how its plan could lay the groundwork for serious energy negotiations.   A message from NRECA:   Power Centers Emissions from a coal-fired power plant are silhouetted against the setting sun in Kansas City, Mo., Feb. 1, 2021. | Charlie Riedel/AP Photo Environmental justice The Biden administration is making it harder to greenlight projects that would add pollution to communities already suffering from poor air and water quality, writes Zack Colman. The move delivers a hard-fought victory to Black, low-income and other marginalized communities that often bear disproportionate environmental and health burdens, write E.A. Crunden and Emma Dumain. Words and more words House Republicans are seeking to repeal green tax credits in the Inflation Reduction Act that disproportionately benefit GOP districts. Emma Dumain and Timothy Cama interviewed GOP lawmakers who have praised individual IRA-backed projects about how they square that support with their attempts to repeal the law. Some had answers, others did not. Let's get virtual The Energy Department’s loan office has announced a first-ever award for a virtual power plant project, write David Iaconangelo and Brian Dabbs. Virtual power plants seek to create a network of decentralized energy resources that work in tandem to generate and save electricity for the grid or a specific facility. In Other News Number crunching: The most cited number about the Inflation Reduction Act is probably wrong, and that could be a good thing ... depending on whom you ask. Green amendments: A mother-daughter duo wants healthy environments to be guaranteed in state constitutions.   GO INSIDE THE 2023 MILKEN INSTITUTE GLOBAL CONFERENCE: POLITICO is proud to partner with the Milken Institute to produce a special edition "Global Insider" newsletter featuring exclusive coverage, insider nuggets and unparalleled insights from the 2023 Global Conference, which will convene leaders in health, finance, politics, philanthropy and entertainment from April 30-May 3. This year’s theme, Advancing a Thriving World, will challenge and inspire attendees to lean into building an optimistic coalition capable of tackling the issues and inequities we collectively face. Don’t miss a thing — subscribe today for a front row seat.     Subscriber Zone A showcase of some of our best subscriber content. Electric vehicles recharge their batteries at the East Crissy Field charge station on March 9, 2022, in San Francisco. | Justin Sullivan/Getty Images California's total sales of clean cars have surged past 1.5 million, years ahead of the state's 2025 target. Democrats' massive climate bill, along with a promotional push by members of the Biden administration, is reviving a $40 billion gas export project in Alaska. The nation's top energy regulator greenlit two major natural gas export projects, exposing a deep rift between the agency's two Democratic commissioners. That's it for today, folks. Thanks for reading, and have a great weekend!   LISTEN TO POLITICO'S ENERGY PODCAST: Check out our daily five-minute brief on the latest energy and environmental politics and policy news. Don't miss out on the must-know stories, candid insights, and analysis from POLITICO's energy team. Listen today.       A message from NRECA: America’s Electric Cooperatives are powering stronger communities while returning more than $1.4 billion to their consumers in 2021 alone. Motivated by people, not profits, co-ops invest in stronger communities and drive toward new possibilities. Cooperatives keep the lights on at a cost that consumers can afford. As we innovate to meet tomorrow’s energy needs, co-ops are building stronger rural communities. Nearly 900 local electric cooperatives power 56 percent of the American landscape. From growing suburbs to remote farming communities, electric co-ops serve as engines of economic development for 42 million Americans. As local businesses built by the consumers they serve, electric cooperatives invest $12 billion annually in their communities. Learn how electric co-ops are #PoweringTomorrow.     Follow us on Twitter Arianna Skibell @ariannaskibell   Follow us

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