BCSE: FY 2016 climate funding aids U.S. clean energy companies

The Business Council for Sustainable Energy has sent letters to members of Congress on behalf of its membership expressing support for the U.S. contribution to the Green Climate Fund and Climate Investment Funds in the administration’s fiscal year (FY) 2016 federal budget request.

According to FY 2106 budget documents published by the White House, the administration has requested $500 million in contributions to the new GCF, which will help developing countries leverage public and private finance in reducing carbon pollution and strengthening resilience to climate change. Information contained in the budget explains that by reducing the most catastrophic risks of climate change, the GCF will help promote smart, sustainable long-term economic growth and preserve stability and security in fragile regions of strategic importance to the U.S. The budget also notes the investments will build on the best practices and lessons learned from the CIF and that the GCF is expected to become the preeminent, effective and efficient channel for climate finance. 

Information published by the U.S. Department of State specifies that $350 million of the $500 million in funding for the GCF would be provided by the State Department, while the remaining $150 would be contributed by the U.S. Department of Treasury.  

According to the State Department, the U.S., joining other nations, has pledged $3 billion to the GCF, not to exceed 30 percent of total confirmed pledges to the new $10 billion fund. The GCF builds off the best practices and lessons learned from the CIFs, to which the previous administration pledged $2 billion. The State Department notes the FY 2016 budget request includes $230 million to fully meet the remainder of this previous CIF commitment.

The letters issued by the Business Council for Sustainable Energy express the organization’s support for FY 2016 GCF and CIF funding. “The U.S. support of these international funds creates new market opportunities for American clean energy companies and enables American businesses to provide U.S. technology and innovation to developing countries,” said the Business Council for Sustainable Energy in the letter. “U.S. firms are often faced with competition from countries that link development assistance with project support, as well as use aggressive national tactics to secure market shares in developing and emerging economies. The financial support of vehicles such as the GCF and CTF will help to create free, fair and functioning markets in which U.S. firms can compete and do business.”

Members of the Business Council for Sustainable Energy include Alstom, the Biomass Power Association, Covanta Energy Corp., Enel Green Power North America Inc., and Waste Management. Full copies of the letters can be downloaded from the council’s website.