Maya Jackson Randall
Of DOW JONES NEWSWIRES
WASHINGTON -(Dow Jones)- Although environmental groups earlier this week declared their opposition to the Bush administration's plan for a multilateral clean energy technology fund, key members of a U.S. House subcommittee Thursday voiced conditional support for the program.
House Financial Services Committee Chairman Barney Frank, D-Mass., for instance, said the program, which is designed to help finance clean energy facilities in developing nations, is a "sign of progress that everyone should welcome." While the Bush administration has been sharply criticized for not doing enough to address climate change, Frank sees the proposal as evidence that the White House is recognizing climate change as a significant issue.
Similarly, Rep. Luis Gutierrez, D-Ill., chairman of the House subcommittee on domestic and international monetary policy, trade and technology, said the fund "may be an effective way" to cut greenhouse gas emissions on an international level.
The president's fiscal year 2009 budget includes a $400 million appropriations request for the U.S.'s initial contribution to the Clean Technology Fund. In addition, the administration wants Congress to commit $2 billion to the fund over the next three years. The fund, which would be administered by the World Bank, would include a mix of loans, grants, equity investment and credit guarantees to finance the technologies. The goal is to have other nations, including those in the Group of Eight and in the Middle East, contribute billions to the fund as well.
"I'm going to support this if we get things worked out," Frank said at a hearing to consider the fund. But he also noted that if the fund interferes with anti-poverty efforts, it won't work. He made clear that if it came down to having to pick between funding anti-poverty efforts and the clean technology fund, the fund would "go off to the side first."
Frank also outlined various concerns shared by environmentalists about the World Bank's ability to administer the clean energy program. Critics argue that the World Bank has consistently financed dirty, fossil-fuel projects that will do nothing to help the environment. Critics also oppose plans to allow the energy fund to back coal-fired power plants, which emit substantial pollution into the air.
"Historically, the World Bank has not been seen as an institution friendly to environmental concerns," Frank said, suggesting that another entity should administer the clean technology fund.
However, Treasury Under Secretary for International Affairs David McCormick defended the World Bank as an institution looking to focus more on environmentally friendly lending.
