Green Climate Fund defends new partners Deutsche Bank, World Bank
Officials say new partners will no longer bankroll fossil fuel projects
ADDIS ABABA, 14 July 2015 -- Green Climate Fund (GCF) officials defended yesterday the decision to endorse known fossil-fuel project funders Deutsche Bank and the World Bank as partners, saying that the Fund’s accreditation procedures confirmed “they will not do it again” and that this widens as well financing choices for developing countries.
The recent GCF accreditation of the two institutions as international financial intermediaries was one of the questions raised at a GCF-organized event during the third UN Financing for Development conference, which started yesterday here in the Ethiopian capital.
“This does not show prioritization of national ownership and direct access but a continuing preference for using international financial intermediaries, previously agreed as only secondary mechanisms,” said Mae Buenaventura, deputy coordinator of the Asian Peoples’ Movement on Debt and Development (APMDD), who attended the GCF side event. She added that accrediting entities with records of funding fossil fuel projects in developing countries “further casts doubt on the capacity of the GCF to achieve truly transformational ends.”
INCHEON, South Korea, 9 July 2015 – An Asian alliance observing the ongoing climate finance talks here voiced their opposition to the accreditation of top coal funders Deutsche Bank and World Bank as new funding channels.
“Neither Deutsche Bank nor the World Bank can hold up to the highest fiduciary and financial accountability standards, as well as enforce social-economic and environmental safeguards,” said Lidy Nacpil, coordinator of the Asian Peoples Movement on Debt and Development (APMDD), at the board meeting of the Green Climate Fund (GCF).
“In addition, they continue to be among the biggest bankrollers of dirty energy, as well as false solutions such as palm oil and agrofuels. And despite their public commitment to the transition to renewables and clean energy, they show no signs of slowing down,” she added in a statement.
Nacpil referred to Deutsche Bank’s embroilment in multiple scandals, including a $2.5 billion fine last April for rigging interest rates and probes on suspicions of money laundering. She also cited the BankTrack network’s research that the German bank invested a total of $20.3 billion in coal from 2005 to April 2014.
She added that the World Bank increased its dirty energy funding last year, citing research from the NGO Oil Change International that it has invested $6.2 billion of public finance for coal from 2007 to 2014.
APMDD also joined a statement of civil society organizations questioning the integrity and reputation of the GCF following its decision to accredit Deutsche Bank and other entities.
“Unfortunately, with this decision, the Green Climate Fund is proving to be more ‘business as usual’ rather than ‘transformational,’” Nacpil said.
The GCF was founded as a mechanism under the United Nations climate convention to redistribute money for climate adaptation and mitigation from developed to developing countries. Over $10 billion is currently pledged to the fund.
The eleven other entities accredited by the GCF board today are Namibia’s Environmental Investment Fund, Rwanda’s Ministry of Natural Resources, India’s National Bank for Agriculture and Rural Development, Corporación Andina de Fomento (Development Bank of Latin America), Caribbean Community Climate Change Center, Africa Finance Corporation, Agence Française de Développement, Conservation International, European Bank for Reconstruction and Development, Inter-American Development Bank and United Nations Environment Programme.
They and the seven previously-accredited institutions are allowed to access GCF funds, and in turn disburse them to other groups who will be implementing projects and programs in developing countries.
The Asian Peoples Movement on Debt and Development (formerly Jubilee South–Asia Pacific Movement on Debt and Development) is a regional alliance of peoples' movements and organizations, coalitions, and nongovernmental organizations.
The full statement of APMDD is at http://www.apmdd.org/our-programs/ecological-debt-environmental-justice-a-climate-change/statements/302-no-to-deutsche-bank-and-world-bank-as-green-climate-fund-partners.
The joint statement of civil society representatives at the Green Climate Fund, including APMDD, is at http://www.scribd.com/doc/270998470/Green-Climate-Fund-accreditation-of-Deutsche-Bank-sparks-concern-about-integrity-and-reputation-of-Fund.
The Asian Peoples Movement on Debt and Development strongly opposes the Green Climate Fund Board decision approved today, July 9, to accredit the Deutsche Bank and World Bank as its international financial intermediaries. We call on the GCF board to reverse the decision to accredit both banks.
Intermediaries are institutions allowed to access GCF funds, and in turn disburse them to other groups who will be implementing projects and programs in developing countries. They have a significant role in enlisting and overseeing implementing entities, as well as soliciting projects and programs for approval by the GCF Board.
Intermediaries should be held to the highest fiduciary and financial accountability standards, as well as have the capacity for enforcing social-economic and environmental safeguards. But weighed against these measures, both Deutsche Bank and World Bank are found wanting. In addition, they continue to be among the biggest bankrollers of dirty energy, as well as false solutions such as palm oil and agrofuels. And despite their public commitment to the transition to renewables and clean energy, they show no signs of slowing down.
Nothing less than a systemic transformation of our societies, our economies, and our world will suffice to solve the climate crisis and close the ever-increasing inequality gap.
After over 20 years of stunted and ineffective action to reduce climate pollution by governments – particularly in wealthy countries that have failed to meet their legal and moral responsibilities – only urgent and transformative and systemic change that can address the root causes of the crisis and deliver what is needed to keep global temperature rise below 1.5 degrees Celsius, the limit beyond which climate impacts will become potentially catastrophic.
The urgency to keep temperatures down is not just about the planet and the environment. It is about people, and our capacity as humanity to secure safe and dignified lives for all.
MANILA, 30 June 2015 – A broad alliance of Southern social movements and international organizations sent a joint statement calling for climate justice to the heads of the recently-concluded United Nations climate meeting in New York.
Yesterday’s high-level event was convened by the UN general assembly ahead of the Paris climate talks in December, in which almost 200 countries are expected to agree on a new climate deal.
The Asian Peoples’ Movement on Debt and Development (APMDD) co-authored the “People’s Test on Climate in 2015” statement with ActionAid International, Bolivian Platform for Climate Action, CIDSE (International Cooperation for Development and Solidarity), Environmental Rights Action/Oil Watch, Friends of the Earth International, Greenpeace International, International Trade Union Confederation, LDC [Least Developed Countries] Watch International, Mesoamerican Campaign for Climate Justice, Oxfam International, Pan-African Climate Justice Alliance, and 350.org.
“Despite initiatives like the New York meeting, we are not on track to averting the climate crisis, much less delivering justice for peoples already impacted by climate change,” said Lidy Nacpil, APMDD coordinator.
“The much-awaited Paris summit must catalyze substantive emissions reductions; provide adequate funds and technology to developing countries; deliver on adaptation, loss and damage, and a just job transition; and focus on renewable and efficient solutions rather than false solutions such as carbon markets and geo-engineering,” she added.
“The scale of transformation the world needs to address the climate crisis, as well as the urgency with which this transformation must happen, is huge,” the heads of the organizations stated in a letter to the president of the UN General Assembly and the Peruvian and French ministers who are shepherding the UN climate talks. “The solidarity between our groups and those sharing our struggles will grow, and with it our power. We will be watching, in Paris in December and well beyond.”
The full “People’s Test on Climate in 2015” statement can be accessed here.
The Asian Peoples’ Movement on Debt and Development (formerly Jubilee South–Asia Pacific Movement on Debt and Development) is a regional alliance of peoples' movements and organizations, coalitions, and nongovernmental organizations.