S.1783 - Combating Global Poverty Through Energy Development Act (119th Congress)
Summary
S.1783, the "Combating Global Poverty Through Energy Development Act," aims to promote the financing of affordable and reliable energy projects, including coal, oil, natural gas, and nuclear energy, by international financial institutions. The bill requires the Secretary of the Treasury to instruct U.S. Executive Directors at these institutions to oppose any restrictions on financing such projects. It also mandates a report to Congress on efforts to eliminate these restrictions and promote energy project financing.
Expected Effects
If enacted, this bill would likely lead to increased investment in fossil fuel and nuclear energy projects in developing countries by international financial institutions. This could potentially lower energy costs and improve energy access in those countries. However, it could also slow down the transition to renewable energy sources and exacerbate environmental concerns.
Potential Benefits
- Increased access to affordable energy in developing countries, potentially improving living standards.
- Support for U.S. energy companies and related industries through international project financing.
- Potential for economic growth in developing countries due to increased energy availability.
- Diversification of energy sources in developing nations, reducing reliance on single sources.
- Strengthened U.S. influence within international financial institutions through directed policy changes.
Potential Disadvantages
- Potential for increased greenhouse gas emissions and contribution to climate change.
- Risk of environmental damage in developing countries due to fossil fuel projects.
- Possible displacement of renewable energy investments in favor of fossil fuels.
- Conflict with international efforts to transition to cleaner energy sources.
- Reputational risk for the U.S. due to perceived disregard for climate change concerns.
Constitutional Alignment
The bill's focus on directing the actions of U.S. representatives in international financial institutions falls under the purview of Congress's power to regulate commerce with foreign nations (Article I, Section 8). The reporting requirements also align with Congress's oversight responsibilities. However, the bill's potential impact on international agreements related to climate change could raise questions about the treaty power (Article II, Section 2).
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).