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World Bank urged to stop dirty business

by PhilLee — last modified May 28, 2010 12:30 PM

A meeting of the World Bank in Brussels on May 27 was targeted by campaigners who urged it to stop financing fossil fuel projects.

Brussels against WB and its lending to ESKOM-1Activists gathered outside the meeting at which bankers, EU officials, industry representatives and other stakeholders were discussing the future of the bank’s energy lending. They staged a peaceful 'black comedy' and handed out dirty contracts for so-called 'clean coal' to expose the disastrous impacts of the bank’s financing on climate change and the world’s poorest people. Civil society representatives later went inside to participate in the consultation.

The World Bank has ear-marked massive funds for investment in fossil fuels, especially large coal projects. Between 2007 and 2009, the World Bank increased funding for fossil fuels by 22%. Since 2007 the World Bank Group has provided $6.6 billion for coal-based energy development. This strategy locks developing countries into carbon intensive energy models for decades instead of helping developing countries to make the transition to sustainable energy production.

The latest illustration of the bank's climate-damaging lending is the Eskom project in South Africa, to which the World Bank approved a $3.75 billion loan in April. Most of the money will be used for the building of the Medupi power plant, one of the largest and dirtiest coal fired plants in the world. Over 165 civil society groups and some governments were opposed to the World Bank loan to Eskom, because of its disastrous environmental and climate impacts, and as it will mainly benefit large foreign multinational corporations to the detriment of South Africans, perpetuating a serious energy apartheid in the country.

Brussels against WB and its lending to ESKOM-2Anne-Sophie Simpère of Friends of the Earth France said:


"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

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