Read Farming Money here

Companies, investment funds and sovereign wealth funds are increasingly investing in land to hedge their price risks, driving land grabs. 

In January 2012, FoEE published the study “Farming Money”. It shows that a broad list of EU-based private financial institutions – banks, pension funds and insurance companies – are involved in trading or marketing investment products based on agricultural commodity futures or other agricultural commodity derivatives and complex instruments. Some of those which seem most involved are Deutsche Bank, Barclays, the Dutch pension fund ABP, the German financial services group Allianz and French banking group BNP Paribas. 

A significant number of financial institutions across Europe appear to also be involved in financing land grabs directly or indirectly. Allianz has a fund that invests in Bulgarian agricultural land, Deutsche Bank has a fund that invests in Brazilian farm land, and a subsidiary of the Italian insurance group Generali has purchased land in Romania. Other financial institutions have financed agribusinesses with explicit links to land grabs and human rights abuses, notably ABP in Mozambique, AXA in India and HSBC in Uganda. 

The study recommends a set of key measures to regulate EU financial markets and tighten corporate policies on financial services and investments in food commodity derivatives and land deals. In order to avoid excessive speculation influencing food prices, the de-regulation that has taken place over the last 20 years must be reversed. 

Caps on the size of the bets speculators can make, so called ‘hard position limits’, are essential to tackle excessive speculation. The EU proposals must be strengthened and improved supervisory capacities must be introduced.

Private financial institutions, including banks, pension funds and investors, should liquidate their open positions in food commodity derivatives and related funds and refrain from further activities that are not directly linked to hedging for farmers, food processing companies and related commercial traders. Fund managers and financial service providers should apply strict codes of conduct on the use and sale of food commodity products and agricultural land investment, as well as respective financial services.

Read Farming Money here

The organisers recognized two corporations that are exemplary cases of those WEF members and corporations whose social and ecological offenses reveal the downside of pure profitoriented globalization.

For its food speculation practices, the expert panel conferred the Public Eye Global Award on British banking giant Barclays. As the fastest-growing food speculator in the world, Barclays drives up food prices at the expense of the poorest. In just the second half of 2010, 44 million people worldwide were driven into extreme

poverty due to rising food prices.

“We hope this award will encourage European lawmakers to introduce tough regulations to curb food speculation and stop banks gambling with food prices while nearly a billion people go hungry. Women, children and elderly people in the Global South are often the hardest hit by food speculation,” said Amy Horton of World Development Movement, the NGO that nominated Barclays for the award.

A new record of people voted via the web for the Public Eye People’s Award. The most votes (25,041) went to Vale, followed closely by Tepco (24,245) and Samsung (19,014).

Vale is Brazil’s second-largest corporation, the world’s second-largest mining firm, and the largest global producer of iron ore. The corporation has a 60-year history tarnished by repeated human rights abuses, inhumane working conditions and the ruthless exploitation of nature. Vale is currently taking part in the construction of the Belo Monte Dam in the Amazon. The dam is likely to result in the forced relocation of 40,000 people, who have neither a voice in the matter nor will they likely receive compensation. 

further reading

• Read our case study on Vale
• Read Friends of the Earth Europe's report on food speculation

Vale, the Brazilian mining company present in 38 countries and the largest iron-ore mining corporation in the world is one of six finalists for the Public Eye Award, which annually elects the worst company in the world by popular vote and announces the winner during the World Economic Forum in Davos, Switzerland.

The company's entry in mid-2010 in the Northern Consortium Energia SA, responsible for building the  Belo Monte Dam on the Xingu River in Para, was considered by the organizers of the award the determining factor for their inclusion in the list of six finalists in the Public Eye this year.

Vale owns 9% stake in the consortium, which will be responsible for the forced displacement of about 40,000 people, directly and indirectly reaching 14 indigenous communities of the Middle Xingu, flooding and drying 668 square kilometers, and drying out 100 kilometers of the Big Bend River of the Xingu.

Cast your vote now!

Friends of the Earth International's Executive Committee show solidarity with the Occupy Edinburgh movement, October 2011.

Our history of campaigning against transnational corporations and environmentally destructive economic policies has clearly indicated that we must attain economic justice in order to save the planet.

We believe that the vast inequalities lived by the 99% today are the consequence of the globalized capitalist system which subsidizes dirty industry and invests in military expansion at the expense of securing healthy and just economies with strong social services.

This system has resulted in a legacy of ecological devastation that will be passed on to our children and to the many generations thereafter.

growing inequalities

In many parts of the world people are losing their livelihoods and social security as a result of an expanding economic crisis. In addition, many people are suffering the impacts of other ongoing related crises: in food and water, forests and biodiversity, energy and climate.  Each of these crises is the result of an economic system that promotes the endless commodification, privatization and over-consumption of our common natural resources.  We see how these crises only exacerbate global socio-economic inequalities.

We also believe that the growing economic inequalities within our societies are coupled with growing inequalities in political power. The great majority of us live within broken, unresponsive political systems. The influence of big business has expanded to such an extent that our national and global governance institutions have largely been captured by corporate lobbyists.  The world's democratic institutions should by definition serve the peoples' interest, and in so doing also protect our environment. But if our democratic institutions fail to represent the common good, if our national and global governance institutions are controlled by corporate interests instead, then we must mobilize to the streets to demand that the system changes.  Today, the transformation of our world begins with people mobilizing and demanding real, systemic change. 
 

an alternative system

We cannot expect the same global market model that has caused climate change, ecological destruction and poverty to solve the problems we are facing today . We must work together to strengthen our resistance to this system.  We must work to create new, transformative economic models that promote our collective prosperity, social equity and real environmental sustainability.  We strongly believe that an alternative system must be created, and it must include both environmental and economic justice at its core.  We must create economies not for profit, but for life.

The spirit of the times is one of urgency.  We at Friends of the Earth International, along with other allied social movement organizations, recognize our own struggles in the struggles of the 99%.  We offer our solidarity and our support, and we join this movement whole heartedly.

Mobilize, Resist and Transform!

“BusinessEurope has been resisting tougher emission reduction targets and obstructing the climate action we desperately need. BusinessEurope speaks on behalf of the most polluting sectors of industry and ignores its members which have realised ambitious climate policies can be good  for our economy and create millions of jobs. BusinessEurope is pushing  Europe into the role of laggard in the fight against climate change and  decision-makers should stop accepting their arguments.”

The European Business Summit is Brussels' biggest lobby forum and is attended by business leaders and prominent EU decision-makers. This year ten European Commissioners, including Commission President Barroso, will participate. The theme of the event is ‘Europe in the world: leading or lagging?’.

Summit organisers claim, ‘EU decision-makers should put companies first for Europe to maintain a leading position in the world’. Friends of the  Earth Europe believes that it is exactly this approach that is fuelling the climate crisis, and has led to Europe’s most severe financial crisis in the last 80 years.

Read European Noise here

"Despite the unprecedented crisis following the financial meltdown, intense lobbying by large banks and investment firms continues to delay and seriously water-down much-needed regulatory reforms. While people around the world are suffering severe consequences, corporate lobbyists are blocking any measure that could limit the massive profits of banks. This is unacceptable. We call on the European Commission to put an end to the privileged access granted to big business, for instance limiting their access to EU advisory groups on future financial regulation."

The awards are part of an ongoing campaign to expose and counter dirty lobbying tactics and privileged access impacting on EU decision-making.

For more information about this year’s nominees, and to follow future developments, please visit: www.worstlobby.eu

Nominees in both categories include companies and lobby groups that have lobbied 'secretly' and used false arguments and threats to block effective regulation. Their deceptive lobbying is aimed at securing bigger profits for big business at the expense of the European public.

The awards were launched in Brussels by MEPs Evelyn Regner and Dan Jørgensen and the mascot of this year’s awards, Lobby-Cleaner, who encouraged the public to cast their votes and help clean up the European climate and finance lobbying scene.

The nominees in the climate category are:

• BusinessEurope: Nominated for its aggressive lobbying to block effective climate action in the EU while claiming to support action to protect the climate.
   
• ArcelorMittal: Steel industry fat cat, nominated for lobbying on CO2 cuts under the Emissions Trading Scheme (ETS) and profiting from free ETS emission permits.
   
• RWE: Nominated for claiming to be green while lobbying to keep its dirty coal-and oil-fired power plants open.

The nominees in the finance category are:

• Royal Bank of Scotland: Nominated for secretly lobbying in Brussels and for exploiting insider contacts by headhunting former EU Commissioner Günter Verheugen as an advisor
   
• Goldman Sachs and derivatives lobby group ISDA: Nominated for aggressive lobbying to defend their ‘financial weapons of mass destruction’
   
• Hedge fund and private equity lobby groups AIMA and EVCA: Nominated for deceptive lobbying to block regulation of damaging speculation in the financial sector

Paul de Clerck, speaking for the organisers of the 2010 Worst EU Lobbying Awards, said:

"We need strong European policies to counter climate change and avoid another financial crisis. The aim of the Worst EU Lobbying Awards is to publicly expose and counter harmful corporate lobbying that undermines effective EU legislation on climate and finance.

“The award mascot Lobby-Cleaner calls on the public to vote for their choice for worst lobbying and help put pressure on European decision-makers to promote public interest rather than commercial interests.”

Evelyn Regner, MEP said: 

"It is five to twelve. The regulation of the financial sector can no longer be postponed, even if it’s against the wishes of the lobby of banks, Hedge Funds and Private Equities. The European institutions have to be strong and resistant to lobby influences."

This is the 5th year of the awards which aim to expose and counter dirty lobbying tactics among EU decision-making circles. The ‘winners’ of each category will be announced on December 3.

To find out more about the nominations and to cast your vote go to www.worstlobby.eu/

The Worst EU Lobbying Awards 2010 are jointly organised by Corporate Europe Observatory, Friends of the Earth Europe, LobbyControl, Spinwatch. 

The communications are supported by: 38degrees and Campact.

Environmental groups in Mozambique, including Environmental Justice (JA!), have said that the unfiltered fumes being pumped out of the smelter will affect towns and villages within 40-100 kilometres from the source causing a serious risk to public health.

According to JA! the unfiltered substances being released from the smelter can cause severe irritation to the skin, eyes, airways and an increased risk of lung cancer.

JA! and other environmental groups in the Mozambique are lobbying the government and Mozal for there to be a public debate on the serious issue. 

To date there has not been an Environmental Impact Assessment and therefore it's unclear to everyone what the impact will be of operating without filters. However, JA! can only conclude that the filters, when in place, significantly reduce air pollution or Mozal would not be investing $10 million in their renovation. 

In addition, JA! have looked at a similar case, from October 2004, at a smelter in South Africa owned by Mozal's parent company BHP Billiton. 

In that instance the filters were put out of service for only 72 hours and the company issue issued a press release calling for "people with asthma and others with respiratory problems, or who have low tolerance for smoke and dust, to remain indoors". 

Now BHP Billiton are claiming that they can perform the same operation for six months without any significant risk. This makes JA! question the difference of criteria and behaviour of BHP Billiton in South Africa and Mozambique.

JA! have collected more than 14,000 signatures calling for a public debate on the renovation project which is scheduled to go ahead in November 2010.

• Take action now!
  
  

What would it cover?

It would include transactions involving stocks, bonds, foreign exchange, and derivatives (including trade of futures and options related to stocks, interest rate securities, currencies and commodities).

It would cover all transactions traded on exchanges as well as off-exchange or "over the counter" (OTC).

It would be limited to transactions between financial market actors. Ordinary consumer transactions such as payments for goods, paychecks and cross-border remittances would not be subject to the Robin Hood Tax. Short-term inter-bank lending and central bank operations would also be excluded from the Robin Hood Tax.

Who's in?

Angela Merkel (the German Chancellor) and Nicolas Sarkozy (the French President) have all spoken out in support of a tax on financial transactions.

Plenty of business bigwigs are on-board too. Lord Turner (from the UK Financial Services Authority), George Soros (the philanthropist) and Warren Buffet (US businessman extraordinaire) have all backed transaction taxes. And then there are the hundreds of economists who have backed the idea, too.

This isn't some crazy pipedream. It's a simple and brilliant idea which transcends party politics and which - with your support - can become a reality.

Take action!

Please sign the petition on the Friends of the Earth Europe website calling on the The Group of Twenty (G-20) Finance Ministers and Central Bank Governors to support the tax.

"The World Bank should use its energy strategy review to stop financing fossil fuels and to redirect its investments to renewable energies and energy efficiency. The World Bank must make the needs of local communities and the global need to fight climate change paramount in its lending policy."

Similar demonstrations have taken place in South Africa and the United States.

further information

Read a full press release from Friends of the Earth Europe here
Read a report on the World Bank involvement with the South African energy company Eskom

Darek Urbaniak, extractives campaigner for Friends of the Earth Europe said: 

“Europe risks becoming a climate villain if it does not take effective action to prevent the entry of oil from tar sands into European markets. The environmental damage caused by tar sands may be outside the EU, but the trail of destruction leads to its door.”

The report reveals that the current EU proposal for the implementation of the Fuel Quality Directive does not penalise oil products from high-carbon sources, treating oil produced from tar sands as conventional oil. This could allow an influx of oil from tar sands – heavily criticised for its poor environmental and social record – into Europe.

Paul de Clerck, economic justice campaigner for Friends of the Earth Europe said: 

“The Fuel Quality Directive is supposed to benefit the climate, but the latest proposal from the European Commission leaves the European market wide open for energy-intensive fuels produced from tar sands. The EU should be a global standard-setter, and should refrain from giving political or financial assistance to tar sands projects, instead incentivising low carbon projects like renewables.”

The vast infrastructure and capital requirements of tar sands (estimated around US$ 379 billion in the next 15 years in Canada alone) would be better spent financing the shift towards a low-carbon economy, and on efforts to meet the Millennium Development Goals, the report says.

• Read the report here

The award is named after the iconic mermaid statue in Copenhagen - where crucial climate talks will take place this December. The mermaid is angry about the destruction being caused by climate change.

Tell us who you think is the biggest culprit by casting your vote online now!

• Find out more and cast your vote
  

• Read the full report here.

Case studies in the report – including of oil extraction in Nigeria and biofuel production in Indonesia - demonstrate some of these impacts. Europe does not just import such materials directly, it also imports them as part of finished products, for example a computer imported from China will have large amounts of resources associated with its production.

Dr Michael Warhurst, who leads Friends of the Earth Europe’s Resources and Consumption campaign, said:

“Europe is using an ever-increasing amount of the world’s resources, and our society is already very dependent on imports of materials – yet we have no targets to reduce this resource use, and new policies are not assessed for their potential to increase our resource efficiency.

Friends of the Earth Europe is calling on the EU to take the first steps to tackle this issue through ensuring that our resource use is measured, and by adopting new policies to increase our resource efficiency, such as higher recycling targets. The EU must also start to devise long term targets and strategies in order to radically reduce our resource use.”

Friends of the Earth Europe and Sustainable Europe Research Institute (SERI) have analysed possible methods of measuring Europe’s resource use, and are proposing that four key aspects be covered: material use (the focus of this report), land use, water use and greenhouse gas emissions. Each of these analyses must properly account for the impacts of  Europe’s consumption on the rest of the world, by incorporating the ‘rucksack’ of the resources used to make products which are imported into Europe.

Dr Warhurst added:

“In order to continue to thrive on this planet, our societies will need to become less resource dependent, so that we are able to protect our natural resource base and the fragile eco-systems on our planet.”

Europe is using more than its fair share of resources, and reducing our consumption will also free more resources to increase the quality of life in the developing world. In addition, a more resource-efficient economy will be a competitive advantage for Europe as resource availability becomes more constrained in the future.”

Read the full report here.