$200 million for Multilateral Assistance, International Financial Institutions

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Thomas Nides
Deputy Secretary of State Management and Resources United States Department of State Washington, DC 20520

Dear Mr. Nides, As the State Department considers its allocations of the Economic Support Fund (ESF) for Fiscal Year 2012, we write to ask that you direct the $200 million authorized for “Multilateral Assistance, International Financial Institutions” to critical climate and food security accounts. In addition to our support for this transfer of funds, we also want to take this opportunity to urge that the Least Developed Countries Fund (LDCF) and the Special Climate Change Fund (SCCF), also funded out of the ESF, be funded at FY10 levels.

As you know, in the Conference Report on the Consolidated Appropriations Act of Fiscal Year 2012 bill, $200 million was authorized under ESF to be allocated upon agreement between the administration and Congress. While we recognize that there are many competing priorities for ESF funds, the additional financing for the following funds, in combination with funding for the LDCF and SCCF, will make a significant difference in serving vital U.S. interests and helping to deliver on two of the President’s top global initiatives – Food Security and Climate Change.

$115.37m Clean Technology Fund (to a total of $300m) The CTF aims to mitigate carbon pollution in emerging economies through the deployment and transfer of low-carbon technologies. Clean energy investment in developing countries is expected to reach $20 trillion over the next 25 years. The potential for the U.S. to be a global leader in this sector has real implications for a new generation of jobs.

$50.1m Strategic Climate Fund (to a total of $100m) The SCF is comprised of three targeted funds for poor countries that incentivize the scaling-up of actions that integrate climate resilience into national development plans, reduce deforestation, and increase energy access through renewable sources. SCF funded projects are now in critical stages of implementation.

$15m Global Agriculture and Food Security Program, Public Sector Window (to total $150m) The GAFSP is a multi-donor trust fund for country and regional food security programs. Its Public Sector Window invests in activities to improve food security and livelihoods, such as linking farmers to markets, increasing productivity, technical assistance, and reducing risks. To date, U.S. investments have helped mobilize funding from seven other donors.

$10.2m Global Environment Facility (to a total of $100m) The GEF unites 182 countries and combines the ingenuity of U.S. corporations, international institutions, NGOs and governments to address global environmental issues. Recent reforms have made it even more effective. U.S. contributions receive a high rate of return: for every U.S. dollar invested in the GEF, $30 to $50 is mobilized from other sources of co-financing.

Separately, as mentioned, we also want to express our support for the LDCF and SCCF and urge those accounts to be funded at FY10 enacted levels, which is consistent with the President’s FY12 budget request of $49 million (combined). The LDCF and SCCF are doing critical work in the world’s poorest countries and achieve the broadest support across the NGO community of any international climate funds in existence today. Assisting developing countries to bolster economic growth, build resilience to the impacts of a changing climate, adopt clean energy technologies, protect tropical forests and biodiversity, and increase food security serves U.S. economic, security, and development objectives.

Robust investments in these accounts promote national security and reduce global instability caused by migration and conflicts over ever-scarcer resources. Before leaving his post as Chair of the Joint Chiefs of Staff, Admiral Mullen noted that climate impacts “could generate conditions that could lead to failed states and make populations more vulnerable to radicalization.” They also ensure significant U.S. cost savings. According to the World Bank and the U.S. Geological Survey, for every $1 spent on disaster preparedness $7 can be saved in disaster response.

We appreciate the support the administration has provided to these important accounts to date and believe that continued strong funding of these accounts is essential to getting the U.S. closer to its goals and international commitments.

Sincerely,
Africare
CARE USA
Center for International Environmental Law
Church World Service
Climate Solutions
Congressional Hunger Center
EcoEquity
Environmental and Energy Study Institute (EESI)
Fabretto Children’s Foundation
Friends Committee on National Legislation
Interfaith Power & Light
Lutheran World Relief
National Wildlife Federation
Natural Resources Defense Council
Oxfam America
Refugees International
RegioDev Africa (RDA)
Sierra Club
Union of Concerned Scientists
Washington Office on Latin America
Wildlife Conservation Society
World Wildlife Fund