By Arianna Skibell

Presented by Chevron

Climate envoy John Kerry speaks at the U.N. COP27 climate conference on Nov. 11, 2022, in Sharm el-Sheikh, Egypt. | Sean Gallup/Getty Images

The Biden administration wants to put the World Bank in charge of a new fund to help developing nations suffering irreversible climate damage.

The proposal for the “loss and damage” fund threatens to hinder the U.N. climate talks that begin next month, as vulnerable countries push back against the involvement of an institution that has its roots in colonialism, writes Zack Colman.

The battle of the new fund is becoming a top issue as negotiators gather for a final meeting this week before the climate talks in Dubai, United Arab Emirates. For the United States, the World Bank is a practical choice: The country has worked with the bank for years and is its largest shareholder.

But to developing countries — which have contributed the least to climate change but bear the brunt of the fallout — the World Bank is a tool of the industrialized world to impose its economic policies. They say the loss and damage fund should operate as an independent body under the United Nations.

Those fears are not unfounded. The U.S. has emitted more planet-warming pollution than any other country since the mid-19th century but has long resisted efforts to tie compensation to climate liability.

The Biden administration only reluctantly endorsed the creation of the new fund — and so far, the U.S. hasn’t pledged any money. That’s unlikely to change: House Republicans steadfastly oppose a separate administration request for $11 billion in international climate finance.

One World Bank official told Zack that the U.S. is leaning on the bank partly because it’s a “USA policy tool” that doesn’t require new cash.

Some veterans of international climate talks also say establishing a new fund could take years. Placing the fund instead under the World Bank could mean countries get the money they need much more quickly.

“Historically it’s served as a useful anchor because it’s a trusted institution where there can be trustee services,” a State Department official involved in climate finance told Zack.

“But you know, there’s other views as well,” said the official, who is not authorized to speak publicly. “So that’ll have to be settled over time.”

It's Thursday — thank you for tuning in to POLITICO's Power Switch. I'm your host, Arianna Skibell. Power Switch is brought to you by the journalists behind E&E News and POLITICO Energy.

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Chevron knows methane management is critical for a lower carbon future. We’re striving to lead in methane management with innovative practices, partnerships, and new technologies. These are a few ways we’re aiming to keep methane in the pipe.

Today in POLITICO Energy’s podcast: Ben Lefebvre breaks down the Biden administration's deal to ease sanctions on Venezuela’s oil industry in exchange for more competitive presidential elections in the country next year.

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The path of the Mountain Valley pipeline as it crosses the Blue Ridge Parkway at Adney Gap in Virginia. | Heather Rousseau/Roanoke Times via AP

Mountain Valley saga continues
Completion of the closely watched Mountain Valley pipeline will be delayed until next year, the projects's developer said. And its cost will exceed $7 billion, writes Carlos Anchondo.

The updates from Equitrans Midstream mark the latest twist in the saga of the embattled natural gas project, which received Congress’ and the Biden administration's blessing earlier this year.

Is methane next?
Scientists say removing carbon dioxide from the atmosphere is essential to meeting international climate goals, writes Chelsea Harvey.

Yet carbon dioxide isn’t the only climate-warming gas that needs a sharp cutback in the atmosphere. Experts are now turning their focus to methane as well.

Tension over Slovakia's environment minister
Rudolf Huliak, a well-known climate change denier, has been nominated as Slovakia's next environment minister by the Slovak National Party, writes Ketrin Jochecová.

Zuzana Čaputová, the country's president, said she refuses to back Huliak for the job. But the SNS party said it will not change the nomination and warned the president not to exceed her powers.

Cha-ching! Billionaire Mike Bloomberg’s Philanthropies arm has announced $50 million to help cities tackle climate change.

Activism: Climate protesters disrupted the start of Federal Reserve Chair Jerome Powell’s economics speech in New York.

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An illustration of the PacWave South project shows various devices for capturing wave energy. | PacWave/Oregon State University

Construction is almost complete on an $80 million test facility a few miles offshore from the port of Newport, Ore., that is designed to convert ocean waves into electricity.

The Biden administration is accepting applications for a program that boosts tax credits for solar and wind projects built in low-income areas.

The administration laid out a framework today for the seven states that share the Colorado River to negotiate a long-term pact to be put in place in 2026 to allocate its dwindling flows.

That's it for today, folks! Thanks for reading.

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