Asian mov’t protests vs Deutsche Bank, World Bank as new climate fund channels
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 https://www.apmdd.org/campaigns/ecological-debt-environmental-justice-climate-change/no-to-deutsche-bank-and-world-bank-as-gcf-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.
Contact Denise Fontanilla for more information.