In December 2009, the U.S. Department of the Treasury developed guidance regarding coal-fired power generation in the multilateral development banks (MDBs). In October 2013, the Treasury updated and revised this guidance to implement a key section of President Obama’s Climate Action Plan. This policy guidance builds upon environmental standards already in place regarding coal-fired power generation and further curtails U.S. support for MDB funding for overseas coal projects, except in narrowly defined circumstances. By further clarifying these standards, this revised guidance helps to level the playing field for clean energy alternatives. This guidance note covers a range of issues including alternatives analysis, power sector policy reform, and capacity building. This guidance is intended to supplement rather than supersede other MDB operational policies (environmental impact assessment, other environmental and social safeguards, procurement, etc.).
The Department will continue to use this guidance to help determine its interactions with the MDBs as they update relevant sector strategies and operational policies, as well as to inform U.S. voting positions on individual operations.
U.S. Guidance Note to MDBs