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Sweden postpones carbon payment to Uganda tree farm where locals have been evicted

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A planned disbursement of SEK 10 million by the Swedish Energy Agency (SEA) for emissions reductions produced by the Kachung plantation in Uganda, owned by the Norwegian company Green Resources, has been delayed due to on-going concerns about the project. Development Today has learned that the Swedes were about to give a green light last week but put on the brakes.

The delay coincides with the publication of the Berkley-based Oakland Institute’s third critical report on the Kachung plantation. Entitled “Evicted for Carbon Trading,” the report was released last Thursday (August 29), and presents evidence that farmers have over the years been evicted by Green Resources and its Ugandan subsidiaries to make room for the plantation. It also raises questions about the validity of certification received by the project from three international bodies, including the Forest Stewardship Council and CDM.

Ola Westberg at the Swedish Energy Agency tells Development Today that the payment delay is not related to Oakland’s report, which the agency rejects out of hand.

“As far as we can see the report contains no new information and the conclusions arrived at by Oakland do not match those of the independent audit that we have implemented,” the agency writes in a statement released one day after the Oakland report was published.

Rather, the delay is related to the Swedish Energy Agency’s own assessment of the project, Westberg says.

The Swedish agency had planned for a transfer last week of certified emissions credits produced by the Kachung plantation in Uganda and approved by the UN’s Clean Development Mechanism – equivalent to 192,000 tonnes of CO2.

“The plan was to go through with the transfer last week,” says Ola Westberg at the Swedish Energy Agency to Development Today. Once the credits are transferred, the agency has 30 days to pay SEK 10 million to Green Resources, which owns the plantation. Westberg says the agency is “still reviewing the progress report from Green Resources. [The transfer] could happen any day, but probably not this week … There will be no transfer of certified emissions credits until the agency is satisfied.”

PAYMENT SCHEDULE

The plantation, located in Northern Uganda, is surrounded by 17 villages. Though the land being used by Green Resources to plant pine trees is formally owned by the government, thousands of people have used the area for farming and cattle grazing. While the company plans to earn SEK 35 million by selling carbon credits to the Swedish state, the treatment of people in the area has been at the heart of the controversy that has dogged this project for almost a decade.

Back in 2011, the Swedish Energy Agency signed a SEK 35 million agreement with Green Resources for the purchase of 365,000 tonnes of carbon emissions reductions from the company’s pine plantation in Kachung, Northern Uganda. The payments would be made over a 20-year period, with the first disbursement of SEK 1.2 million taking place in 2013.

According to the agreement’s payment schedule, a second disbursement for emissions reductions achieved during the five-year period (2013-2017) was to be made last year.

But the cooperation was frozen in 2015 when media reports and the energy agency’s own site visits revealed that the situation of affected people was worse than Green Resources had led the agency to believe. The agency stated in a press release at the time that “villagers were deprived of vital resources and experienced threats and violence, and there is a lack of clarity regarding ownership in the reserve.”

Following the freeze in 2016, Green Resources presented a road map detailing how it would improve its dealings with communities affected by the plantation. This included a ten-point action plan on areas like food security, water availability, cattle grazing and roads. The Swedish agency welcomed the move, but warned that future carbon payments were “conditional on the implementation of concrete actions to improve the situation.”

The agency stated: “We believe we can do more for local people by taking responsibility and making demands on Green Resources … than by pulling out of the project.”

AUDITS

Since then, the Swedes have called for two independent audits – one published in March 2017 and the other in November 2018, both carried out by the South African consultancy EOH– to assess Green Resources’ progress on the ten points in the action plan. The first audit was largely positive, but found that “no significant actions” had been taken to boost agricultural land productivity, diversify income-generating activities and improve food security. It also referred to several ongoing court cases related to land ownership disputes, urging the company to find a solution “as soon as possible.”

Development Today has obtained a copy of the second EOH audit. It points to numerous shortcomings: “Food security, ineffective communication … complaints from communities associated with corruption, land-rights issues, as well as community access to forest resources” are areas of significant concern. Green Resources is deemed by the consultants to be “partially compliant or non-compliant” on a range of key interventions. “Most … lack specific measurable key performance indicators,” making it difficult to assess compliance. In spite of a commitment to undertake road maintenance after the rainy season, “no firm plans for this are in evidence as yet.” The consultants found “no water quality monitoring data for the current year [or] … a planning schedule for natural water point rehabilitation interventions.” Moreover, the EOH report states, “the provision of health centre support and provision of drug supplies to these facilities has seemingly not been undertaken for the 2018 period.”

Westberg says Green Resources has made improvements in several areas since the 2018 audit, but that the Swedish Energy Agency is still assessing the progress.

OAKLAND INSTITUTE REPORT

The Oakland Institute’s latest report on Kachung criticises the EOH audit from 2017, which stated that “no person had been displaced or evicted” and that the company did not acquire “Kachung land forcefully.” Oakland’s report includes facsimiles of eviction notices signed by Green Resources’ Ugandan subsidiaries. “The eviction notices and letters released with this report make it clear that [EOH]’s claims are false,” Oakland writes.

The authors also take to task the most recent certification by the Forest Stewardship Council, which took place in May 2019. Oakland questions FSC’s claim that that there are no “current unresolved disputes over tenure and use rights,” and there are “effective dispute and grievance procedures that is accepted in the community.”

Commenting on the eviction notices, Westberg does not dispute that evictions took place. The plantation is on national forest reserve land where people are not permitted to live, he says: “Compare it with the situation in Sweden and Norway. What would happen if someone settled in our national forest reserve?  That would also be against the law. There are laws there as well as up here in Scandinavia. That is how I made sense of it.”

The Swedish agency states that it invited Oakland Institute to have dialogue and to participate in the investigation of the project on-site in Uganda, but Oakland has declined.

Asked why they did not participate in SEA’s investigation, Anuradha Mittal, Executive Director of Oakland Institute, says to Development Today: “It is very obvious that what the people of Kachung need is not another audit. What they need is true action from the Swedish Energy Agency to stop facilitating this land grab by Green Resources and effectively address the issues and problems communities face as a result of the project.”

Green Resources has funding from two Nordic development finance institutions, Norfund and Finnfund.

Rasi Rajala, Communications Director at Finnfund, says he appreciates Oakland Institute’s concern for smallholder farmers in Uganda. “We encourage them to visit the Green Resources plantation and discuss more closely with the local team there. As for their latest report, it does not appear to contain any substantial new information,” he says.

Like the Swedish Energy Agency and Finnfund, Norfund finds there to be “limited new information” in the Oakland report. “We have no reason to doubt that the audits conducted by FSC and other auditors have been of a high standard,” Inger Nygaard, Communications Manager at Norfund, says.

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Uganda moves toward a Bamboo Policy to boost environmental conservation and green growth.

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By Witness Radio team.

 

Uganda’s move to develop a national bamboo policy aims to boost environmental conservation and create green jobs, addressing the country’s urgent unemployment issues among the working class.

 

Bamboo is a critical tool in fighting climate change due to its rapid growth, high carbon sequestration capacity, and ability to produce 35% more oxygen than equivalent trees. As a fast-growing, renewable resource, it restores degraded land, provides sustainable materials that replace emission-intensive products like concrete, and offers a resilient, low-carbon bioenergy source. 

 

Bamboo’s potential is outlined in the existing National Bamboo Strategy. Still, stakeholders stress that a formal policy involving entrepreneurs, farmers, and processors is essential to remove regulatory uncertainty and foster sector growth.

 

“The strategy is a good document, but it was developed largely through desk research. It did not fully involve entrepreneurs, farmers, and processors who are already working in the bamboo industry,” said Sjaak de Blois, chairman of Bamboo Uganda, encouraging stakeholders to see their role as vital.

 

The bamboo policy is currently at an early consultative stage, with no draft yet submitted to the cabinet or parliament. Recent consultations brought together representatives from eight government ministries, private-sector bamboo actors, and development partners to begin aligning the strategy with practical regulatory needs.

 

“What we have now is the starting point,” De Blois mentioned. “The next step is to take the strategy and make it more practical, more market-driven, and more Ugandan. The next step is to move from having a plan to adopting a policy.

 

Bamboo currently falls under several regulatory frameworks, with no single authority overseeing the sector. The policy push is being driven in part by Bamboo Uganda, a membership-based organization bringing together bamboo farmers and processors, among others. The organization aims to play a coordinating role similar to that historically played by the Uganda Coffee Development Authority in the coffee sector.

 

“If you want to make a sector meaningful for a country, you need coordination. Coffee became what it is because of an institution that aligned farmers, traders, exporters, and regulators. Bamboo needs the same kind of coordination.” He said.

 

The policy process is supported by the Belgian development agency, which is funding consultations and facilitating dialogue between the government and the private sector.

Industry players say the absence of clear regulations has constrained investment despite growing demand.

“At the moment, bamboo is everywhere and nowhere at the same time. As a farmer, you talk to forestry, as a charcoal producer, you talk to energy, as a builder, you talk to works. There is no single framework that enables the industry to function.” De Blois added.

 

Supporters of the policy argue that bamboo could play a significant role in environmental conservation. Bamboo grows rapidly, regenerates after harvesting, and can be harvested annually for decades, reducing pressure on natural forests.

 

According to Global Forest Watch (GFW), Uganda lost 1.2 million hectares of tree cover between 2001 and 2024, representing a 15% decline from the 2000 baseline. Bamboo has been identified as a key species for restoration.

 

“One acre of bamboo that is harvested sustainably can prevent the destruction of hundreds of acres of natural forest,” De Blois said. “If we get this right, bamboo can help reverse deforestation rather than contribute to it.”

 

Ms. Susan Kaikara, from the Ministry of Water and Environment, emphasized bamboo’s potential to drive Uganda’s green-growth agenda.

 

“Establishing a coherent national policy framework will strengthen coordination, inspire investment, and unlock bamboo’s full potential as a pillar of Uganda’s green economy,” she said.

 

Uganda’s charcoal market alone is estimated to be worth hundreds of millions of dollars annually, much of it supplied through unsustainable wood harvesting. Industry actors say certified bamboo charcoal plantations could offer a cleaner alternative.

 

“If they allow us to certify bamboo charcoal plantations, then we can get a trade license to compete or to work together with the existing market. We will reverse deforestation. We would enter an industry of about 500,000 hectares, creating smart, green jobs. We can digitalize them to make them attractive through bamboo agroforestry. So again, those things need a policy.” He adds.

 

Bamboo is also viewed as a climate-friendly crop due to its high capacity for carbon sequestration. Its rapid growth enables it to absorb large amounts of carbon dioxide, while its extensive root system improves soil structure and increases long-term carbon storage.

 

“When you look at carbon sequestration, bamboo offers several advantages. Residues from harvested bamboo can be converted into biochar, locking carbon into the soil for long periods. When you also see the sequestration per acre compared to many other trees, it is five or six times higher. So, we sequester a lot,” De Blois said

 

Stakeholders say that if the policy process progresses as planned, bamboo could emerge as one of Uganda’s key green growth sectors within the next decade.

 

“Policy making takes time. But what is important is that we have started the conversation with all the right ministries in the room. From here, it is about taking steady, practical steps.” He concluded.

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A Global Report reveals that Development Banks’ Accountability Systems are failing communities.

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By Witness Radio team.

For decades, development projects have been funded to address some of the World’s most pressing problems, including poverty, wildlife conservation, and climate change. However, what unfolds on the ground is sometimes the opposite of development. Instead of benefits, these projects have often harmed the very people they are supposed to support.

The effort to address such harm has led to the establishment of Independent Accountability Mechanisms (IAMs) by various development banks. Yet, communities affected by these projects often face betrayal by national court systems, leaving them feeling overlooked and vulnerable, emotions that underscore the urgent need for effective justice.

According to experts in development financing, since the early 1990s, development banks have sought to address and mitigate harm through IAMs—non-judicial grievance mechanisms that provide a direct avenue for impacted communities to raise concerns, engage with project implementers, and obtain remedies for the harm they have experienced.

The study, conducted by Accountability Counsel and titled Accountability in Action or Inaction? An Empirical Study of Remedy Delivery in Independent Accountability Mechanisms shows that while IAMs exist, their relevance has fallen short, underscoring the urgent need for reform to restore community trust and hope.

In compiling the report, researchers reviewed 2,270 complaints across 16 IAMs and conducted 45 interviews covering 25 cases globally.

The report reveals a persistent gap between the promise of remedies and their realization, highlighting that only 15% of closed complaints led to commitments, and just 10% achieved full completion, underscoring the urgent need for effective remedies for communities.

The findings highlight ongoing challenges, including inadequate implementation, limited monitoring, and persistent power imbalances, which continue to block communities from accessing meaningful remedies and demand immediate reform.

“The consequences of these institutional gaps are severe. As these cases show, institutional silence can exacerbate risk, while meaningful intervention can help de-escalate it.” The Report adds.

Uganda is among the countries where communities have sought justice using these accountability mechanisms. Between 2006 and 2010, communities in one of the districts of Uganda were brutally evicted by the UK-based Company, which was growing trees in the area.

The company was formerly an investee of the Agri-Vie Agribusiness Fund, a private equity fund supported by the International Finance Corporation (IFC), the private sector arm of the World Bank Group. The community filed a Complaint with the IFC’s accountability mechanism, the Compliance Advisor Ombudsman (CAO).

“We complained to this body in 2011, hoping for justice, but over 15 years later our people are still struggling, living miserably, some without homes,” a community land and environmental defender told the Witness Radio team.

According to the affected residents, the CAO process did not lead to success or meaningful compensation, as they had hoped.

Between 2013 and 2014, the communities, with support from the CAO, signed a final agreement with the Company to address the harm. Among other commitments, this included resettlement of the affected communities.

In its 28-page report published in 2015 titled: A Story of Community-Company Dispute Resolution in Uganda, the CAO wrote,” With the agreements concluded, implementation is gathering pace. As agreed, the company has begun extending development assistance to both cooperatives, and the process of restoring and enhancing livelihoods has commenced.

The first step taken by both cooperatives was to acquire land. In late 2013, the Mubende Cooperative bought 500 acres of ‘fertile agricultural land’ in the Mubende district. Their vision was to allocate a certain percentage of the land for resettlement, with the remainder utilized for farming projects.

Reports from the ground indicate that communities remain dissatisfied with the process, claiming it failed to address their concerns fully and highlighting the urgent need for more effective remedy systems.

“When you say that people are well, it is really a total lie. Many people were never compensated or resettled. Even those who got a portion of land say they have never seen a fertile land—I have never seen it, because people are living or cultivating on rocky, infertile lands,” the defender further revealed.

The struggle faced by the Ugandan community is not unique. Their experience mirrors what the Accountability Counsel report identifies worldwide. Despite registering more than 2000 complaints by communities harmed by bank-financed projects globally, there has been no comprehensive system-wide analysis of whether and how often these mechanisms deliver meaningful remedies, defined as tangible, material outcomes that repair harm and improve lives.

In addition to the slow success of such IAMs, the report notes that, across interviews covering 25 complaints, 84% referenced retaliation, violence, or threats of violence-an alarming indicator of the risks faced by communities seeking justice, demanding immediate attention and action.

“Government officials and company representatives were frequently implicated in efforts to suppress dissent. This not only reduces the likelihood of achieving a substantial remedy, but also suppresses the willingness of community members to speak honestly and openly about Complaint outcomes.” The report further adds,

Further, it reveals that communities described a range of retaliatory tactics, including physical clashes, arrests, detentions, fatalities, intimidation and harassment, death threats, and anonymous warning letters, among others.

“Remedy must be reimagined not as a peripheral concern but as a core responsibility of development institutions. It must be adequately resourced, independently monitored, and centered around the needs and voices of affected people,” the report adds.

The report recommends that development banks and IAMs establish a Remedy Framework with clear standards to ensure remedies are timely, adequate, and community-centered, and to encourage stakeholders to prioritize systemic reform for better justice outcomes.

The report also urges development banks and their accountability mechanisms to make remedies a foundational element of responsible finance. Adopting institutional frameworks that prioritize redress, empowering IAMs to oversee and enforce commitments, and incorporating the outcomes of IAM processes into project evaluations and institutional learning.

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Young activists fight to be heard as officials push forward on devastating project: ‘It is corporate greed’

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“We refuse to inherit a damaged planet and devastated communities.”

Youth climate activists in Uganda protesting the East African Crude Oil Pipeline, or EACOP, are frustrated with the government’s response to their demonstration as the years-long project moves forward.

According to the country’s Daily Monitor, youth activists organized with End Fossil Occupy Uganda took to the streets of Kampala in early August to protest EACOP. The pipeline, under construction since about 2017 and now 62 percent complete, is set to transport crude oil from Uganda’s Tilenga and Kingfisher fields through Tanzania to the Indian Ocean port of Tanga by 2026.

Activists noted the devastating toll, with group spokesperson Felix Musinguzi saying that already around 13,000 people “have lost their land with unfair compensation” and estimating that around 90,000 more in Uganda and Tanzania could be affected. End Fossil Occupy Uganda has also warned of risks to vital water sources, including Lake Victoria, which it says 40 million people rely on.

The group has been calling on financial institutions to withdraw funding for the project. Following a demonstration at Stanbic Bank earlier in the month, 12 activists were arrested, according to the Daily Monitor.

Some protesters were seen holding signs reading “Every loan to big oil is a debt to our children” and “It’s not economic development; it is corporate greed.”

Meanwhile, the regional newspaper says the government has described the activist efforts as driven by foreign actors who mean to subvert economic progress.

EACOP’s site notes that its shareholders include French multinational TotalEnergies — owning 62 percent of the company’s shares — Uganda National Oil Company, Tanzania Petroleum Development Corporation, and China National Offshore Oil Corporation.

The wave of young people taking action against EACOP could be seen as a sign of growing public frustration over infrastructural projects that promise economic gain while bringing harm to local communities and ecosystems. Activists say residents face costly threats from pipeline development, such as forced displacement and the loss of livelihoods.

Environmental hazards to Lake Victoria could also disrupt water supplies and food systems, bringing the potential for both financial and health impacts. Just 10 years ago, an oil spill in Kenya caused a humanitarian crisis. The Kenya Pipeline Company reportedly attributed the spill to pipeline corrosion, which led to contamination of the Thange River and severe illness.

The EACOP project has already locked the region into close to a decade of development, and concerns about the pipeline and continued investments in carbon-intensive systems go back just as long. Youth activists, as well as concerned citizens of all ages, say efforts to move toward climate resilience can’t wait. “As young people, we refuse to inherit a damaged planet and devastated communities,” Musinguzi said, per the Monitor.

Source: The Cool Down

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