H.R. 5952 — Sustainable International Financial Institutions Act of 2025

This section directs the U.S. Executive Directors at 12 specified international financial institutions (IFIs)—including the World Bank (International Bank for Reconstruction and Development and International Development Association), International Finance Corporation, Multilateral Investment Guarantee Agency, African Development Bank and Fund, Asian Development Bank and Fund, European Bank for Reconstruction and Development, Inter-American Development Bank and Invest, and North American Development Bank—to use the U.S. voice and vote to (1) advance global greenhouse gas emissions reductions and clean energy transitions by directing assistance to clean energy systems; (2) oppose policy reforms, investments, loans, or assistance creating or expanding fossil fuel capacity (including refurbishments, life extensions, or offshoring increased capacity); and (3) support phasing out funding for internal combustion engines in passenger vehicles and buses by 2031 in a sustainable manner sensitive to mobility needs. The section further requires the Secretary of the Treasury, for each fiscal year, to determine each specified IFI's prior-year spending on new fossil fuel capacity; reduce the U.S. contribution to that IFI by the determined amount; deposit the reduction in an escrow account; and release escrowed funds upon certifying to Congress that the IFI has ceased such spending. (Thus, U.S. funding to noncompliant IFIs is effectively withheld pending policy changes.) The Secretary must report to Congress on such spending within 120 days of each escrow deposit and annually thereafter until release. The section defines "fossil fuel activity" (i.e., exploration through marketing of coal, oil, gas, and derivatives used as fuel, including pipelines and refineries) and "fossil fuel" (broadly including oil sands, shale oil, coal bed methane, and all conventional/unconventional hydrocarbons); it also defines "policy reform" (i.e., IFI changes incentivizing fossil fuel investment, such as tax reductions).

This section prohibits the United States from providing, directly or indirectly (such as through financial intermediaries), any loan, insurance, guarantee, or extension of financial or technical assistance—including policy guidance—to any country or entity for fossil fuel activities (as defined in section 2001(d) of the International Financial Institutions Act, as added by section 2) or related infrastructure projects, including through the U.S. International Development Finance Corporation, Export-Import Bank of the United States, Trade and Development Agency, U.S. Agency for International Development, or Millennium Challenge Corporation.