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Banks have given almost $7tn to fossil fuel firms since Paris deal, report reveals

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Among world’s top 60 banks those in US are biggest fossil fuel financiers, while Barclays leads way in Europe.

The world’s big banks have handed nearly $7tn (£5.6tn) in funding to the fossil fuel industry since the Paris agreement to limit carbon emissions, according to research.

In 2016, after talks in Paris, 196 countries signed an agreement to limit global heating as a result of carbon emissions to at most 2C above preindustrial levels, with an ideal limit of 1.5C to prevent the worst impacts of a drastically changed climate.

Many countries have since promised to reduce carbon emissions, but the latest research shows private interests continued to funnel money to oil, gas and coal companies, which have used it to expand their operations.

Eight in 10 of the world’s most eminent climate scientists now foresee at least 2.5C of global heating, according to the results of a Guardian survey published last week – an outcome expected to lead to devastating consequences for civilisation.

Researchers for the banking on climate chaos report, now in its 15th edition, analysed the world’s top 60 banks’ underwriting and lending to more than 4,200 fossil fuel firms and companies causing the degradation of the Amazon and Arctic.

Those banks, they found, gave $6.9tn in financing to oil, coal and gas companies, nearly half of which – $3.3tn – went towards fossil fuel expansion. Even in 2023, two years after many large banks vowed to work towards lowering emissions as part of the Net Zero Banking Alliance, bank finance for fossil fuel companies was $705bn, with $347bn going towards expansion, the report says.

US banks were the biggest financiers of the fossil fuel industry, contributing 30% of the total $705bn provided in 2023, the report found. JP Morgan Chase gave the most of any bank in the world, providing $40.8bn to fossil fuel companies in 2023, while Bank of America came in third. The world’s second biggest financier of fossil fuels was the Japanese bank Mizuho, which provided $37.1bn.

London-based Barclays was Europe’s biggest fossil fuel financier, with $24.2bn, followed by Spain’s Santander at $14.5bn and Germany’s Deutsche Bank with $13.4bn. Overall, European banks stumped up just over a quarter of the total fossil fuel financing in 2023, according to the report.

Tom BK Goldtooth, the executive director of the Indigenous Environmental Network, which co-authored the study, said: “Financiers and investors of fossil fuels continue to light the flame of the climate crisis. Paired with generations of colonialism, the fossil fuel industry and banking institutions’ investment in false solutions create unlivable conditions for all living relatives and humanity on Mother Earth.

“As Indigenous peoples, we remain on the frontlines of the climate catastrophe, and the fossil fuel industry targets our lands and territories as sacrifice zones to continue their extraction. Capitalism and its extraction-based economy will only perpetuate more harm and destruction against our Mother Earth and it must come to an end.”

Critics of the report said its methodology, which relied on investigating deals reported by financial market data companies such as Bloomberg and Refinitiv, meant researchers did not have a detailed view of what was being financed, and by whom.

Specifically, syndicated loans, bond issues and underwriting arrangements often involved several banks with varying levels of exposure. And financing to fossil fuel companies to fund transition technology projects could not be distinguished from financing for new oil wells, they said.

Spokespeople for Barclays, Bank of America, JP Morgan Chase, Deutsche Bank and Santander all emphasised that their organisations were supporting energy sector clients’ transitions toward more sustainable business models. Mizuho declined a request for comment.

Source: the guardian.com

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Happy 2025 to you all! Please join Witness Radio again this year to protect thousands of local farmers who are losing their land to a tree plantation owned by a Taiwan investor.

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By Witness Radio team.

Dear supporters and followers, we are deeply grateful for your continued support and commitment to our cause. Your involvement is crucial as we navigate the challenges ahead. Welcome back from the festive holidays.

At Witness Radio, breaking off for a holiday was not possible because we received devastating news about the sentencing of three community activists to Muyinayina prison before the Christmas and New Year’s holidays. Prisoners include, Byakatonda David, Kabuuka Levi, and Byamukama Yuda. Prisoners include, Byakatonda David, Kabuuka Levi, and Byamukama Yuda. Byamukama is the Kicucuulo Local Council One Chairperson. Their imprisonment is a grave injustice that we cannot ignore.

The situation in the Mubende district is urgent and cannot be overstated. The activists are currently held in Muyinayina prison, located in southwestern Uganda, and their immediate release is crucial.

A magistrate court in the Mubende district deemed the trio’s activities, which were aimed at defending their community’s land, criminal. This unjust ruling led to a 30-month jail sentence, a grave injustice that we cannot ignore.

We chose to sacrifice our holidays to visit the victim’s local farmers. We started with visiting prisoners at Muyinayina prison. However, upon reaching the prison, we were informed by officers at the prison’s quarter-guard that the prison authority had banned all prison visits in the country until mid-January 2025 due to the Christmas holiday. We engaged the Muyinayina prison administration about our visit as lawyers, and eventually, we were allowed in and met our clients. Despite being incarcerated, very calm, confident, and committed activists felt energized by our visit.

See brief facts from the fact-finding mission below;

  1. The investor, with the help of Mubende district police and other private security firms, has seized over 2,590 hectares so far and continues to expand.
  2. Mubende district police and investor’s workers continue to invade the homes of the community, defenders, activists, and leaders opposed to the illegal eviction in the wee hours and cause arbitrary arrests.
  3. The investor is claiming land that hosts ten (10) villages occupied by thousands of smallholder farmers.
  4. The investor’s name was established as Mr. Chang Shu-mu, commonly known as Martin Chang, and his wife was Anna Kyoheirwe.
  5. Locals report cases of violence and destruction of properties against the investor to police but are not investigated as all perpetrators are enjoying their freedoms uninterrupted.
  6. The trio claim they were unheard of before a prison sentence was passed.
  7. Locals have raised their concerns with various government offices, including the office of the Resident District Commissioner (the president’s representative at Mubende district). However, no intervention has been made, and forced evictions continue unabated.

The situation is dire and requires immediate action. We urge you to join us in demanding a review of the case file, protection of the community’s land rights, and, most importantly, a thorough investigation into the conduct of the Mubende district police and investor’s workers. Those in power must be held accountable for their actions.

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Africa’s carbon deals and the hidden tenure challenge

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I. New pressure on land?

Observers marked 2023 as a “make-or-break” year for voluntary carbon markets and a key “ inflection point ” for their role in addressing climate change and global deforestation. Proponents highlight that forest carbon projects channel  much-needed funds  towards forest protection and are pivotal to climate change mitigation. On the other hand, critics emphasize that carbon deals set incentives for overcrediting. Moreover, carbon offsetting allows the biggest emitters to simply outsource their climate mitigation efforts with potentially  adverse impacts  for  affected communities .

The debate was fueled when several large-scale carbon offset projects were reported in Sub-Saharan Africa just before the UN Climate Change Conference COP 28 took place in Dubai in 2023. The sheer dimensions of the planned projects bring back memories of the last major wave of large-scale land deals in 2011 — notably, memories of evictions of local communities and Indigenous Peoples, loss of livelihoods and a lack of free, prior and informed consent (FPIC) practices.

2007/2008

The global financial crisis unleashed.

2010/2011

A major wave of land investments for food and biofuel production in across Africa and the Global South.

2022/2023

Seventeen years on, the pressure on land never eased with a  new wave of deals  related to carbon offsets, green hydrogen schemes, and other “green investments”

 Since 2015, fewer deals have been concluded due to factors like stricter land policies and declining support for biofuels. Based on Land Matrix data, the number of concluded and failed deals is under-reported in this illustration because deals with no information about the year of negotiation are excluded. On the other hand, intended deals are slightly over-reported, as some concluded deals with unknown dates are included as ‘intended.’ 

 Picture: Demonstrators at COP 25 in Madrid, December 2019, against carbon offsetting schemes, advocating for equitable climate solutions and rejecting market-based approaches.

In 2023, four land-sector organizations came together, with support from the European Commission, to strengthen the central role of data in securing equitable land rights for sustainable development, poverty eradication, peace and the protection of human rights. The  Land Data Partnership , which includes the  International Land Coalition , the  Land Portal Foundation , the  Land Matrix Initiative , and  Prindex , aims to improve the complementarity of global land data initiatives and to identify opportunities to hold key actors responsible.

Organisations collaborating in the Land Data Partnership

At first glance, carbon offsetting projects appear to be win-win-win deals for local communities, governments, and the environment, and a key strategy in mitigating climate change. Yet, if we look more closely the question arises: how much can communities benefit if they face insecure land rights and weak land governance systems?

This data story explores in detail the consequences of climate change mitigation for land tenure, and vice versa. Zooming into several case studies in East and West Africa, it highlights the dimensions of tenure security and how people-centered, inclusive and effective land governance systems can help manage the influx of carbon offset projects.

A group of women in Kenya’s Kasigau Corridor, supported by the REDD+ Project manager Wildlife Works, gathers to create sustainable crafts and strengthen their community livelihoods.

Civil society organizations, as well as policymakers, are concerned about the pressures exerted by large-scale carbon deals and the corresponding threats to the land rights of local populations. In this context, Kenya provides an important example. According to Land Matrix and LANDex data, conflicts were reported in 57% of all large-scale land acquisition deals in Kenya.

“The Mau is Kenya’s biggest forest. The Ogiek people are on the front line of a climate solution that is used to justify ongoing evictions and emission. In our view it’s clear that the interest shown by offsetting companies is prompting the Kenyan Government to assert its control.”

Justin Kendrick, Forest Peoples Programme

The recent rise of the voluntary carbon markets (VCM) for land-based carbon removal and avoidance to offset countries’ own emissions was commented on by prominent headlines, such as “the new scramble for Africa” and “carbon cowboys”. On the other hand, supporters emphasize that the voluntary mechanism has  begun to “mature”  and provides much needed funding for forest conservation in places where government support and protection failed.

Read full article: Africa’s carbon deals and the hidden tenure challenge

Source: storymaps.arcgis.com

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COP16 in Riyadh: World Leaders Commit $12.15B to Combat Land Degradation and Drought

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The 16th Conference of the Parties (COP16) to the United Nations Convention to Combat Desertification (UNCCD) has concluded in Riyadh, marking the largest and most inclusive conference in the organization’s history.

With over 20,000 participants, including global leaders, scientists, private sector representatives, and civil society groups, the conference laid out bold strategies to address land degradation, drought, and desertification.

The highlight of the conference was the announcement of the Riyadh Global Drought Resilience Partnership, which secured $12.15 billion in pledges to support drought-affected regions in 80 vulnerable countries, including Uganda.

This funding aims to strengthen food security, promote sustainable land management, and protect ecosystems from the growing impacts of climate change.

For Uganda, where over 40% of the population relies on agriculture, this commitment offers hope for combating the devastating effects of prolonged droughts in the cattle corridor and other semi-arid regions.

In a move to enhance global preparedness for droughts, COP16 launched an AI-powered Drought Observatory, a groundbreaking tool designed to provide real-time data and predictive analysis.

Uganda, with its ongoing challenges in monitoring and responding to climate impacts, stands to benefit immensely from this technology, which will enable the government to anticipate and respond effectively to severe drought conditions.

This could mitigate the recurring food insecurity and water scarcity issues faced by communities in Karamoja and other drought-prone areas.

H.E. Abdulrahman Abdulmohsen AlFadley, COP16 President, in his closing remarks, stated:

“This session marks a turning point in raising awareness and strengthening efforts to restore land and build resilience. The Riyadh Declaration sends a clear message: the time for decisive action is now.”

For Uganda, this turning point is critical as the country battles desertification in key ecosystems like the cattle corridor and Lake Kyoga basin, which threaten biodiversity, agriculture, and livelihoods.

With only 6% of land restoration funding currently coming from private sources, COP16 introduced the Business for Land initiative to increase private sector engagement in land restoration.

Over 400 companies participated in discussions on sustainable finance, environmental, social, and governance (ESG) practices, and strategies to mobilize private investment for land restoration projects.

Uganda, which has already seen successful private-sector participation in conservation projects such as carbon trading and reforestation in areas like Mabira Forest, could tap into this global momentum to attract more investments for land restoration initiatives.

To promote inclusivity, COP16 placed women and youth at the forefront of the fight against land degradation. Key outcomes included:

The launch of youth-led initiatives to drive grassroots climate action.

Adoption of gender-responsive policies to ensure equitable participation in land restoration efforts.

For Uganda, these measures are especially relevant.

The country has a youthful population and strong women-led grassroots organizations that are already leading efforts to promote climate resilience through tree planting and sustainable farming practices.

The resolutions adopted at COP16 provide a framework for scaling up these local efforts while ensuring inclusivity and equitable representation.

Scientific data presented at COP16 painted a dire picture of the planet’s land resources:

77.6% of Earth’s land is drier today than it was 30 years ago.

40.6% of the planet is now classified as drylands, threatening ecosystems, food security, and livelihoods.

For Uganda, this data underscores the urgent need for action.

With parts of the country already facing desertification and reduced rainfall patterns, the findings highlight the importance of restoring degraded lands like Nakasongola and tackling deforestation in critical areas such as Mount Elgon.

As COP16 wraps up, attention now shifts to COP17, which will take place in Mongolia.

Delegates will continue discussions on establishing a global drought regime, building on the momentum and progress achieved in Riyadh.

For Uganda, the outcomes of COP16 represent a pivotal moment.

The historic commitments, technological innovations, and inclusive policies offer the country an opportunity to address its growing environmental challenges.

If implemented effectively, these resolutions could help Uganda restore its degraded lands, safeguard livelihoods, and build resilience against future climate shocks, positioning the country as a leader in sustainable land management in Africa.

Source: nilepost.co.ug

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