US Senate considers $2bn international cleantech fund

Plans for a multi-billion dollar international clean technology fund to help accelerate the deployment of low-carbon technologies in developing economies took a major step forward this week with the unveiling of new legislation designed to manage the US' contribution.

The legislation was introduced by the chairman of the Senate Foreign Relations Committee Joseph Biden and would effectively provide the legal framework for President Bush's plan to commit $2bn to the World Bank's proposed $6bn climate change funds.

It aims to ensure that consideration of climate change and carbon emissions is consistently applied to US foreign assistance decisions and that the fund is structured to encourage the export of US clean energy technology and expertise.

"The developing world's demand for energy and cheap fossil fuels will continue to rise," said Biden. "Our choice is simple - we can ignore the energy needs of developing countries as they grow, or we can join together to help them put in place an infrastructure that promotes cleaner energy and a cleaner economy."

Republican Senator Chuck Hagel welcomed the proposed legislation claiming it would help promote adoption of clean technologies while limiting the need for onerous regulations. "This legislation will help unleash the power of the free markets – not new government-imposed costs and regulations – to accelerate development and use of advanced technologies that reduce, eliminate and sequester greenhouse gas emissions in all countries," he argued.