In 2010, the U.S. Congress passed, and President Obama ratified, a pioneering law that requires emissions targets and timetables for a U.S. government agency, and the development of a human rights policy for an export credit agency.
The legislation, a first of its kind, was incorporated into the 2010 Appropriations Bill and requires the U.S. Overseas Private Investment Corporation (OPIC) to take action on climate change and to develop - and publish - binding internal environmental and human rights guidelines.
They are also mandated to implement a revised climate change mitigation plan to phase down greenhouse gas (GHG) emissions associated with projects and sub-projects they finance by at least 30% in 10 years and 50% in 15 years over 2008 levels. This marks the first time that a U.S. government agency has set a target and timetable on its emissions reductions. In August 2010, under the leadership of new president Elizabeth Littlefield, OPIC took this mandate one step further, and adopted progressive environmental and human rights guidelines that have set the gold standard for financial institutions worldwide.
WRI played a key role in the outcome, engaging with Congress on the issue over three years, along with a wider coalition of NGOs. WRI served as a key resource for legislators in the U.S. Congress who drafted the legislation. The legal requirement builds on WRI’s earlier work to get OPIC to adopt a voluntary greenhouse gas initiative in 2007 to reduce its emissions by 20% over 10 years as well as a February 2010 landmark settlement of a 2002 lawsuit filed against OPIC by Friends of the Earth, Greenpeace and several U.S. cities affected by climate change, to which they alleged OPIC’s investments had made a substantial contribution.
The settlement required OPIC to establish a goal of reducing its emissions by 20% over the next 10 years, to conduct full environmental impact assessments for projects that emit significant amounts of carbon dioxide (CO2) and to publicly report its emissions from these projects annually. In August 2010, OPIC released their environmental and human rights guidelines, which strongly reflect the inputs and recommendations of WRI.