The Export-Import Bank of the U.S. (Ex-Im) bank revised its guidelines Thursday to require the use of carbon capture and storage technology to secure bank financing for coal-fired plants in most countries. The bank stated in a release the changes align bank policies with President Barack Obama’s goal of reducing carbon pollution.
The revised guidelines would still allow flexibility for the bank with respect to the energy needs of the poorest countries in the world.
According to the bank, the guideline revisions are not designed to impact mining projects or coal exports produced by U.S. coal miners and would maintain the bank’s focus on creating and supporting American export-related jobs.
Although the U.S. Environmental Protection Agency has released rules that would limit carbon emissions from fossil fuel-fired power plants, Ex-Im Chairman and President Fred Hochberg said the U.S. cannot reduce emissions alone, and he supports the Obama administration’s efforts to “build an international consensus such that other nations follow our lead in restricting financing of new coal-fired power plants
The World Bank made a move earlier this year to limit financing to new coal-fired power projects.