Four Gas Power Plants Contradict US Directive on Fossil Fuel Financing: Report

November 20, 2023

A report by Friends of the Earth US has identified four gas power plants in Mozambique, Bangladesh, and Uzbekistan that contradict the United States’ directive on ending international financing for new fossil fuel projects by Multinational Development Banks. The investigation found that these plants, costing $400 million, emit an estimated combined total of over 6,000,000 tonnes of carbon dioxide equivalent, not aligning with the goals of the Paris Agreement. Despite US Treasury guidance against supporting certain fossil gas projects, the US voted to support these projects in Mozambique, Bangladesh, and Uzbekistan.

Key Points

Plants Contradict US Directive: The report identifies two gas power plants in Mozambique (Central Térmica de Temane and Central Térmica de Ressano Garcia), one in Bangladesh (Bhola-2 Dual-Fuel), and one in Uzbekistan (Syrdarya Combined Cycle Gas Turbine) that contradict the US directive on ending international financing for new fossil fuel projects by Multinational Development Banks.
Emissions and Paris Agreement Alignment: The four power plants are estimated to emit a combined total of 6,191,150 to 6,587,803 tonnes of CO2 equivalent per year, not aligning with the goals of the Paris Agreement.
US Treasury Guidance: The US Treasury issued guidance against supporting upstream natural gas projects by Multinational Development Banks, but the report highlights discrepancies in the approval of projects, indicating a lack of clear definitions and metrics in the guidance.
Exceptions and Vague Definitions: The report points out that provisions for fossil gas projects have vague definitions, making it challenging to determine project alignment with the guidance. Exceptions include projects supporting International Development Association-eligible countries, with credible alternatives, significant positive impact on energy security, and alignment with Paris Agreement goals.
Lack of Clear Metrics: The lack of clear definitions and metrics in the guidance allows decision-makers to exercise discretion, enabling fossil fuel projects at Multinational Development Banks to receive US support.

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