The European Bank for Reconstruction and Development (EBRD) is due to publish a new Energy Sector Strategy before the end of 2023. A total of 130 civil society organizations from over 40 countries have released a statement calling on the EBRD to end finance for all fossil fuels, including gas.

From 2018 to 2021, the EBRD invested EUR 2.9 billion in the fossil energy sector, with the majority of this support going to gas. This makes it the third biggest funder of fossil fuels among all multilateral development banks, behind the World Bank Group and the Islamic Development Bank.

The EBRD has already excluded coal and upstream oil and gas fields from its financing. The draft Energy Sector Strategy further excludes oil transportation and oil-fired electricity generation. However, the draft strategy would continue to allow some investment in new fossil gas pipelines and other transportation infrastructure, as well as gas power generation and heating.

In the statement, the civil society organizations point out that any new support to gas risks locking in outdated energy infrastructure in places that need investments in clean energy the most. At the same time, they highlight, ending support to fossil gas is necessary, not only for climate security, but also for ensuring energy security, since continued investment in gas exposes countries of operation to high and volatile energy prices that can have a severe impact on their ability to reach development targets. Moreover, they underscore that supporting new gas transportation infrastructure is not a solution to the current energy crisis, given that new infrastructure would not come online for several years, well after the crisis has passed.

The signatories of the statement call on the EBRD to amend the Energy Sector Strategy to

• fully exclude new investments in midstream and downstream gas projects;
• avoid loopholes involving the use of unproven or uneconomic technologies, as well as aspirational but meaningless mitigation measures such as “CCS-readiness”; and
• strengthen the requirements for financial intermediaries where the intended nature of the sub-transactions is not known to exclude fossil fuel finance across the entire value chain.

Source: iisd.org

Download the statement: https://www.iisd.org/system/files/2023-09/ngo-statement-on-energy-sector-strategy-2024-2028.pdf

—FOR IMMEDIATE RELEASE—

August 30, 2023; 12:00 AM PDT

Media Contact: amittal@oaklandinstitute.org, +1 510-469-5228

Oakland, CA — With carbon offset schemes and tree plantations set to take center stage at the Africa Climate Summit (ACS) and Africa Climate Week (ACW) — despite their devastating social and environmental impacts and the prevailing corruption and fraud within the voluntary carbon markets — a new report from the Oakland Institute, Green Colonialism 2.0: Tree Plantations and Carbon Offsets in Africa, denounces the alarming direction taken by the Summit. Starting on September 4, 2023 in Nairobi, Kenya, the two events aim to establish a common position for Africa on the climate crisis for the upcoming COP 28 conference in Dubai, slated for December 2023.

The outcome will have significant implications, given the ACS and ACW — both organized by the government of Kenya — are expected to shape the trajectory of climate action for the continent. The focus and intentions of the events, centered on “leveraging” Africa’s abundant “assets” to drive “green growth and climate finance solutions,” raise serious concerns. “This approach only paves the way for further resource extraction while sidelining the rights and interests of local and Indigenous communities,” said Anuradha Mittal, Executive Director of the Oakland Institute.

Bankrolled by European development finance institutions, Japanese oil interests, and an Australian investment firm, the African Forestry Impact Platform (AFIP), examined in the report, exemplifies the green colonialism that President Ruto of Kenya is promoting on the continent — opening the door for more extraction of Africa’s resources. Despite AFIP’s claim of promoting “nature-based solutions,” a troubling pattern of exploitation and greenwashing underscores its investments, stakeholders, and financial backers. AFIP’s first acquisition is Green Resources, a Norwegian plantation forestry and carbon credit company notorious for its history of land grabbing, human rights violations, and environmental destruction across Uganda, Mozambique, and Tanzania.

Kenya’s promotion of voluntary carbon markets overlooks their fundamental flaws. Over the span of more than two decades, they have miserably failed to reduce carbon emissions, and instead wreaked social havoc by causing forced evictions, loss of livelihoods, and violence. Conflicts of interest, fraud, and speculation plague these markets while the expansion of carbon offset schemes and tree plantations results in expropriation of community lands to generate profits for investors. Far from benefiting Africa, the expansion of carbon markets sustains the status quo of resource exploitation, greenhouse gas pollution, and North/South power imbalances.

“The ACS and ACW represent a pivotal moment. African leaders have a historic opportunity to reject the false solutions that perpetuate the same exploitative model of colonialism that has fueled this environmental catastrophe. Instead, they must listen to the calls of over 400 African civil society organizations(link is external) and prioritize real solutions that account for historical responsibility, uphold the rights of Indigenous and local communities, and pave the way for an equitable and just transition. African people deserve climate justice, not more extractivism,” concluded Mittal.

Source: oaklandinstitute.org