Press Release
September 17, 2006
Bank Information Center
Friends of the Earth International
Institute for Policy Studies
International Rivers Network
Oil Change International
World Bank Energy Framework Sells Climate
and Poor People Short – NGOs
SINGAPORE, September 17, 2006 -- The World
Bank’s promise to seriously support
alternative energy sources remains
unfulfilled, according to a new report
published today to coincide with the World
Bank’s annual meeting.
The report, published by international
environment and development organizations,
concludes that the World Bank’s new
Investment Framework on Clean Energy and
Development will not be effective at
combating climate change and expanding energy
access for the poor.
The report is available at
www.foei.org/publications/ The World Bank’s
Investment Framework presented in Singapore
today proposes raising $10 billion for
conventional energy technologies, while
selling renewable sources of energy short.
The World Bank Investment Framework is a
response to a mandate from the G-8 summit in
Gleneagles in 2005. It aims to increase
access to energy in developing countries,
reduce greenhouse gas emissions in the energy
sector, and assist developing countries to
adapt to climate change.
Instead of combating climate change, the
World Bank Investment Framework promotes
coal-fired power, nuclear power and large
hydropower projects. The World Bank also
proposes setting up a new $10 billion fund to
bring down the costs of conventional energy
technologies that have lower greenhouse gas
emissions. Yet a continued focus on fossil
fuel technologies will neither bring about
the required shift to a carbon-free
development path, nor bring energy services
to the 1.6 billion people who have no access
to modern energy and often live far away from
electric grids.
As they launch their critique of the World
Bank’s Investment Framework in Singapore,
environment and development organizations
call on governments and financial
institutions to take the following steps:
-
End public subsidies for fossil fuel
projects;
-
Step up efforts to meet the basic
energy needs of the poor; and
-
Redirect existing dirty energy
financing to renewable technologies and
energy efficiency projects via a new
Renewable Energy for Development
Agency.
Supporting statements:
“Poor communities in developing countries
are already paying the highest price of
climate change, living with the impacts of
heavy droughts and floods”, said Pantoro Tri
Kuswar of Friends of the Earth
Indonesia/WALHI. “The World Bank’s focus on
fossil fuel projects will not bring
electricity to the poor. Instead, the Bank’s
proposals will lead to more pollution,
conflict and corruption and do little to stop
climate change.”
"In continuing to lend for fossil fuel and
dam projects, the World Bank has consistently
missed the social and environmental double
dividend that renewable energy technologies
could bring”, said Peter Bosshard of
International Rivers Network. “The Bank’s
continued support for fossil fuel projects
will sell poor people and the climate
short.”
"If the World Bank wants to be a positive
force in the fight against climate change
then the first step is to stop subsidizing
the expansion of the oil industry,” said
Graham Saul of Oil Change International. “You
can’t actively subsidize fossil fuels and
effectively fight climate change at the same
time. It’s a disgrace that public
institutions like the World Bank are using
aid money to prop up oil companies that are
already the most profitable companies in the
world.”
"As long as the World Bank hides the
staggering greenhouse gas emissions in its
portfolio, while profiting from commissions
on carbon credits, its carbon trading schemes
are nothing but a shell game,” said Daphne
Wysham of the Institute for Policy
Studies.
“Being dominated by Northern polluters,
the World Bank is an inappropriate
institution to lead global efforts to combat
climate change”, said Bruce Jenkins of the
Bank Information Center. “Rich countries
should channel any additional resources for
energy sector development through a new
Renewable Energy for Development Agency.”
FOR MORE INFORMATION
Peter Bosshard, International Rivers
Network (currently in Singapore), +1 510 213
1438
Bruce Jenkins, Bank Information Center (in
Washington DC), +1 202 329 6875 Graham Saul,
Oil Change International (currently in
Singapore), +1 613 558 3368
Daphne Wysham, Institute for Policy
Studies (in Washington DC), +1 301 573
2468
Elizabeth Bast, Friends of the Earth US
(in Washington DC), +1 202 641 7203 Pantoro
Tri Kuswar, Friends of the Earth
Indonesia/WALHI +62 811 38 32 70
(Indonesia)
How the World Bank’s Energy Framework
Sells the Climate and Poor People Short was
published on 17 September 2006 by the Bank
Information Center, Bretton Woods Project,
Campagna per la Riforma della Banca Mondiale,
CEE Bankwatch Network, Friends of the Earth,
Institute for Policy Studies, International
Rivers Network, Oil Change International and
Urgewald.
The report is available
online
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