Obama administration holds up environmental grants to Iran

At a time of mounting environmental challenges for Iran and sensitive consultations over its nuclear program and Iraq, the Barack Obama administration is holding up implementation of several key Iranian projects developed by the Global Environmental Facility (GEF), according to well-informed sources.

Two experts on Iran and the environment who requested anonymity told Al-Monitor that the GEF is waiting for a green light from the US government before moving forward on the projects, which have otherwise been cleared by the organization.

The multiyear projects include safely disposing of PCBs (polychlorinated biphenyls, a synthetic chemical compound linked to endocrine disruption that has been banned in the United States since 1979), strengthening Iran’s capacity to do environmental assessments and supporting biodiversity. Together, the projects are worth more than $7.6 million.

An official at the GEF who spoke to Al-Monitor on the condition that he not be identified said, “If a project is delayed, it is for technical reasons. This is not a political issue as far as I know.” The two experts on Iran and the environment disagreed, however, asserting the holdup is indeed political and that there appears to be a difference of opinion with the Obama administration about whether to allow the GEF — to which the United States is a major donor — to go forward with the grants. A spokesperson for the US Treasury Department declined to comment on any internal differences, saying only, “The United States has made clear that it objects to any financing for Iran.” However, another administration official, also speaking on condition of anonymity, told Al-Monitor, “Both the State Department and OFAC [the Treasury Department’s Office of Foreign Assets Control] have looked at this issue, and we are of the view that a lot of these programs could proceed but they have been blocked because of congressional opposition.”