UKs largest ethical bank wont touch World Bank private sector bonds Press
release|Bretton Woods Project|11th April 2006|url
-->print | email | bookmark function fbs_click { u = location.href;
t = document.title;
window.open('http://www.facebook.com/sharer.php?u='+encodeURIComponent(u)+'&t='+encodeURIComponent(t),'sharer','toolbar=0,status=0,width=626,height=436');
return false; }
Leading development and environment NGOs, including Christian Aid and
Friends of the Earth, have today welcomed the commitment by The Co-operative
Bank to hold no investments in the World Bank's private sector arm, the
International Finance Corporation (IFC).
It is understood that the Co-operative Bank had become increasingly concerned
about the IFC's commitment to fossil fuel extraction and its failure to provide
meaningful investment for renewable energy projects. Industry monitors estimate
that in 2005 IFC was the world's largest multilateral financier of fossil fuel
extraction. Meanwhile, the agency devoted a mere 4 per cent of its total energy
lending to renewables in the past year, and has set no concrete goals for
increasing such financing. "We are very pleased at The Co-operative Bank's
action. Climate change is the single greatest threat facing the planet. Yet the
IFC uses public funds to subsidise rich oil giants who exploit fossil fuel
resources in developing countries," said Tony Juniper, Executive Director of
Friends of the Earth, England, Wales and Northern Ireland.
"We've looked at the recent investments of the World Bank's IFC and concluded
that there is an unhealthy focus on fossil fuel technologies. Henceforth, we
will withhold investments until such time as renewable technologies are much
better supported", said Paul Monaghan, Head of Sustainable Development, at The
Co-operative Bank.
The IFC - a publicly-backed development institution - is consistently unable
to show evidence that its investments in oil, gas and mining have positive
impacts on poverty alleviation. "Poor people are on the frontline of climate
change and yet the IFC continues to pump public money into fossil fuel projects
on their doorstep. Not only is this immensely ironic but these projects
themselves are so often also a source of misery to the poor communities living
around them," added Andrew Pendleton of Christian Aid (2).
The Bretton Woods Project (3), a watchdog of the World Bank and IMF, believes
the timing of the announcement is significant. "The IFC has just finished
systematically weakening the environmental and social safeguards which act as
standards for private finance (4). It has abandoned any pretension to a
leadership role in the debate over the role of private finance in development,"
said Project Coordinator Jeff Powell. "We hope this decision by The Co-op will
lead other banks to look again at their holdings. This is what it will take to
force the IFC into a fundamental re-think of their failed development model."
Notes to editors:
(1) http://www.foe.org.uk/campaigns/climate/
(2) http://www.christian-aid.org.uk
(3) http://brettonwoodsproject.org
(4) See the joint NGO press release on the IFC safeguard policy review at
http://brettonwoodsproject.org/article.shtml?cmd[126]=x-126-528662
Contact:
Andrew Pendleton, Christian Aid, +44 (0)207 523 2056 [EMAIL PROTECTED]
Mary Taylor, Friends of the Earth EWNI, +44 (0)1223 709942 [EMAIL PROTECTED]
Jeff Powell, Bretton Woods Project, +44 (0)207 561 7546 [EMAIL PROTECTED]
Related articles
IFC safeguard review finished: client risk over protecting rights
News|Bretton Woods Project|8th April 2006|update 50|url Critics assert that
the IFC's new revised standards will lead to more not fewer cases of social and
environmental abuse. read article...
This text may be freely used providing the source is credited.
This page is: <http://brettonwoodsproject.org/art.shtml?x=532241>
Published: Tuesday 11th April 2006
Viewings since posted: 45161
Back-up email for: [EMAIL PROTECTED]
---------------------------------
Be a better pen pal. Text or chat with friends inside Yahoo! Mail. See how.
