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Development banks have no business financing agribusiness

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On the eve of an annual gathering of public development banks in Rome, 280 groups from 70 countries have signed a letter slamming them for bankrolling the expansion of industrial agriculture, environmental destruction and corporate control of the food system. The signatories affirm only fully public and accountable funding mechanisms based on people’s actual needs can achieve real solutions to the global food crisis.

Over 450 Public Development Banks (PDBs) from around the world are gathering in Rome from 19 to 20 October 2021 for a second international summit, dubbed Finance in Common. During the first summit in Paris in 2020, over 80 civil-society organizations published a joint statement demanding that the PDBs stop funding agribusiness companies and projects that take land and natural resources away from local communities. This year, however, PDBs have made agriculture and agribusiness the priority of their second summit. This is of serious concern for the undersigned groups as PDBs have a long track-record of making investments in agriculture that benefit private interests and agribusiness corporations at the expense of farmers, herders, fishers, food workers and Indigenous Peoples, undermining their food sovereignty, ecosystems and human rights.

Our concerns

PDBs are public institutions established by national governments or multilateral agencies to finance government programs and private companies whose activities are said to contribute to the improvement of people’s lives in the places where they operate, particularly in the Global South. Many multilateral development banks, a significant sub-group of PDBs, also provide technical and policy advice to governments to change their laws and policies to attract foreign investment.

As public institutions, PDBs are bound to respect, protect and fulfil human rights and are supposed to be accountable to the public for their actions. Today, development banks collectively spend over US$2 trillion a year financing public and private companies to build roads, power plants, factory farms, agribusiness plantations and more in the name of “development” – an estimated US$1.4 trillion goes into the sole agriculture and food sector. Their financing of private companies, whether through debt or the purchase of shares, is supposed to be done for a profit, but much of their spending is backed and financed by the public – by people’s labor and taxes.

The number of PDBs and the funding they receive is growing.The reach of these banks is also growing as they are increasingly channeling public funds through private equity, “green finance” and other financial schemes to deliver the intended solutions instead of more traditional support to government programs or non-profit projects. Money from a development bank provides a sort of guarantee for companies expanding into so-called high-risk countries or industries. These guarantees enable companies to raise more funds from private lenders or other development banks, often at favorable rates. Development banks thus play a critical role in enabling multinational corporations to expand further into markets and territories around the world – from gold mines in Armenia, to controversial hydroelectric dams in Colombia, to disastrous natural gas projects in Mozambique – in ways they could not do otherwise.

Additionally, many multilateral development banks work to explicitly shape national level law and policy through their technical advice to governments and ranking systems such as the Enabling the Business of Agriculture of the World Bank. The policies they support in key sectors — including health, water, education, energy, food security and agriculture — tend to advance the role of big corporations and elites. And when affected local communities, including Indigenous Peoples and small farmers protest, they are often not heard or face reprisals. For example, in India, the World Bank advised the government to deregulate the agricultural marketing system, and when the government implemented this advice without consulting with farmers and their organisations, it led to massive protests.

Public Development Banks claim that they only invest in “sustainable” and “responsible” companies and that their involvement improves corporate behavior. But these banks have a heavy legacy of investing in companies involved in land grabbing, corruption, violence, environmental destruction and other severe human rights violations, from which they have escaped any meaningful accountability. The increasing reliance of development banks on offshore private equity funds and complex investment webs, including so called financial intermediaries, to channel their investments makes accountability even more evasive and enables a small and powerful financial elite to capture the benefits.

It is alarming that Public Development Banks are now taking on more of a coordinated and central role when it comes to food and agriculture. They are a part of the global financial architecture that is driving dispossession and ecological destruction, much of which is caused by agribusiness. Over the years, their investment in agriculture has almost exclusively gone to companies engaged in monoculture plantations, contract growing schemes, animal factory farms, sales of hybrid and genetically modified seeds and pesticides, and digital agriculture platforms dominated by Big Tech. They have shown zero interest in or capacity to invest in the farm, fisher and forest communities that currently produce the majority of the world’s food. Instead, they are bankrolling land grabbers and corporate agribusinesses and destroying local food systems.

Painful examples

Important examples of the pattern we see Public Development Banks engaging in:

  • The European Bank for Reconstruction and Development and the European Investment Bank have provided generous financing to the agribusiness companies of some of Ukraine’s richest oligarchs, who control hundreds of thousands of hectares of land.

  • SOCFIN of Luxembourg and SIAT of Belgium, the two largest oil palm and rubber plantation owners in Africa, have received numerous financial loans from development banks, despite their subsidiaries being mired in land grabbing, corruption scandals and human rights violations.

  • Multiple development banks (including Swedfund, BIO, FMO and the DEG) financed the failed sugarcane plantation of Addax Bioenergy in Sierra Leone that has left a trail of devastation for local communities after the company’s exit.

  • The UK’s CDC Group and other European development banks (including BIO, DEG, FMO and Proparco) poured over $150 million into the now bankrupt Feronia Inc’s oil palm plantations in the DR Congo, despite long-standing conflicts with local communities over land and working conditions, allegations of corruption and serious human rights violations against villagers.

  • The United Nations’ Common Fund for Commodities invested in Agilis Partners, a US-owned company, which is involved in the violent eviction of thousands of villagers in Uganda for a large-scale grain farm.

  • Norfund and Finnfund own Green Resources, a Norwegian forestry company planting pine trees in Uganda on land taken from thousands of local farmers, with devastating effects on their livelihoods.

  • The Japan Bank for International Cooperation and the African Development Bank invested in a railway and port infrastructure project to enable Mitsui of Japan and Vale of Brazil to export coal from their mining operations in northern Mozambique. The project, connected to the controversial ProSavana agribusiness project, has led to land grabbing, forced relocations, fatal accidents and the detention and torture of project opponents.

  • The China Development Bank financed the ecologically and socially disastrous Gibe III dam in Ethiopia. Designed for electricity generation and to irrigate large-scale sugar, cotton and palm oil plantations such as the gargantuan Kuraz Sugar Development Project, it has cut off the river flow that the indigenous people of the Lower Omo Valley relied on for flood retreat agriculture.

  • In Nicaragua, FMO and Finnfund financed MLR Forestal, a company managing cocoa and teak plantations, which is controlled by gold mining interests responsible for displacement of Afro-descendant and Indigenous communities and environmental degradation.

  • The International Finance Corporation and the Inter-American Development Bank Invest have recently approved loans to Pronaca, Ecuador’s 4th largest corporation, to expand intensive pig and poultry production despite opposition from international and Ecuadorian groups, including local indigenous communities whose water and lands have been polluted by the company’s expansive operations.

  • The Inter-American Development Bank Invest is considering a new $43 million loan for Marfrig Global Foods, the world’s 2nd largest beef company, under the guise of promoting “sustainable beef.” Numerous reports have found Marfrig’s supply chain directly linked to illegal deforestation in the Amazon and Cerrado and human rights violations. The company has also faced corruption charges. A global campaign is now calling for PDBs to immediately divest from all industrial livestock operations.

We need better mechanisms to build food sovereignty

Governments and multilateral agencies are finally beginning to acknowledge that today’s global food system has failed to address hunger and is a key driver of multiple crises, from pandemics to biodiversity collapse to the climate emergency. But they are doing nothing to challenge the corporations who dominate the industrial food system and its model of production, trade and consumption. To the contrary, they are pushing for more corporate investment, more public private partnerships and more handouts to agribusiness.

This year’s summit of the development banks was deliberately chosen to follow on the heels of the UN Food Systems Summit. It was advertised as a global forum to find solutions to problems afflicting the global food system but was hijacked by corporate interests and became little more than a space for corporate greenwashing and showcasing industrial agriculture. The event was protested and boycotted by social movements and civil society, including through the Global People´s Summit and the Autonomous People´s response to the UN Food Systems Summit, as well as by academics from across the world.

The Finance in Common summit, with its focus on agriculture and agribusiness, will follow the same script. Financiers overseeing our public funds and mandates will gather with elites and corporate representatives to strategize on how to keep the money flowing into a model of food and agriculture that is leading to climate breakdown, increasing poverty and exacerbating all forms of malnutrition. Few if any representatives from the communities affected by the investments of the development banks, people who are on the frontlines trying to produce food for their communities, will be invited in or listened to. PDBs are not interested. They seek to fund agribusinesses, which produce commodities for trade and financial schemes for profits rather than food for nutrition.

Last year, a large coalition of civil-society organizations made a huge effort just to get the development banks to agree to commit to a human rights approach and community-led development. The result was only some limited language in the final declaration, which has not been translated into action.

We do not want any more of our public money, public mandates and public resources to be wasted on agribusiness companies that take land, natural resources and livelihoods away from local communities. Therefore:

We call for an immediate end to the financing of corporate agribusiness operations and speculative investments by public development banks.

We call for the creation of fully public and accountable funding mechanisms that support peoples’ efforts to build food sovereignty, realize the human right to food, protect and restore ecosystems, and address the climate emergency.

We call for the implementation of strong and effective mechanisms that provide communities with access to justice in case of adverse human rights impacts or social and environmental damages caused by PDB investments.

Signatories:

Fundación Plurales – Argentina

Fundación Ambiente y Recursos Naturales (FARN) – Argentina

Foro Ambiental Santiagueño – Argentina

Armenian Women For Health &Healthy Environment NGO /AWHHE/ – Armenia

Australian Food Sovereignty Alliance – Australia

SunGem – Australia

Welthaus Diözese Graz-Seckau – Austria

Turkmen Initiative for Human Rights – Austria

FIAN Austria – Austria

Oil Workers’ Rights Protection Organization Public Union – Azerbaijan

Initiative for Right View – Bangladesh

Right to Food South Asia – Bangladesh

IRV – Bangladesh

Bangladesh Agricultural Farm Labour Federation [BAFLF] – Bangladesh

NGO “Ecohome” – Belarus

Eclosio – Belgium

AEFJN – Belgium

FIAN Belgium – Belgium

Entraide et Fraternité – Belgium

Africa Europe Faith & Justice Network (AEFJN) – Belgium

Coalition for Fair Fisheries Arrangements – Belgium

Eurodad – Belgium

Friends of the Earth Europe – Belgium

Alianza Animalista La Paz – Bolivia

Instituto de Estudos Socioeconômicos (Inesc) – Brazil

Centro Ecologico – Brazil

FAOR Fórum da Amazônia Oriental – Brazil

Articulação Agro é Fogo – Brazil

Campanha Nacional de Combate e Prevenção ao Trabalho Escravo – Comissão Pastoral da Terra/CPT – Brazil

Clínica de Direitos Humanos da Amazônia -PPGD/UFPA – Brazil

Universidade Federal Fluminense IPsi – Brazil

Associação Brasileira de Reforma Agrária – Brazil

Rede Jubileu Sul Brasil – Brazil

Alternativas para pequena agricultura no Tocantins APATO – Brazil

CAPINA Cooperação e Apoio a Projetos de Inspiração Alternativa – Brazil

Marcha Mundial por Justiça Climática / Marcha Mundial do Clima – Brazil

MNCCD – Movimento Nacional Contra Corrupção e pela Democracia – Brazil

Marcha Mundial por Justiça Climática/Marcha Mundial do Clima – Brazil

Support Group for Indigenous Youth – Brazil

Comissão Pastoral da Terra -CPT – Brazil

Equitable Cambodia – Cambodia

Coalition of Cambodian Farmers Community – Cambodia

Struggle to Economize Future Environment (SEFE) – Cameroon

Synaparcam – Cameroon

APDDH -ASSISTANCE – Cameroon

Inter Pares – Canada

Vigilance OGM – Canada

National Farmers Union – Canada

SeedChange – Canada

Place de la Dignité – Canada

Corporación para la Protección y Desarrollo de Territorios Rurales- PRODETER – Colombia

Grupo Semillas – Colombia

Groupe de Recherche et de Plaidoyer sur les Industries Extractives (GRPIE) – Côte d’Ivoire

Réseau des Femmes Braves (REFEB) – Côte d’Ivoire

CLDA – Côte d’Ivoire

Counter Balance – Czech Republic

AfrosRD – Dominican Republic

Conseil Régional des Organisations Non gouvernementales de Développement – DR Congo

Construisons Ensemble le MONDE – DR Congo

Synergie Agir Contre la Faim et le Réchauffement Climatique , SACFRC. – DR Congo

COPACO-PRP – DR Congo

AICED – DR Congo

Réseaux d’informations et d’appui aux ONG en République Démocratique du Congo ( RIAO – RDC) – DR Congo

Latinoamérica Sustentable – Ecuador

Housing and Land Rights Network – Habitat International Coalition – Egypt

Pacific Islands Association of Non-Governmental Organisations (PIANGO) – Fiji

Internationale Situationniste – France

Pouvoir d’Agir – France

Europe solidaire sans frontières (ESSF) – France

Amis de la Terre France – France

Médias Sociaux pour un Autre Monde – France

ReAct Transnational – France

CCFD-Terre Solidaire – France

CADTM France – France

Coordination SUD – France

Движение Зеленных Грузии – Georgia

NGO “GAMARJOBA” – Georgia

StrongGogo – Georgia

FIAN Deutschland – Germany

Rettet den Regenwald – Germany

Angela Jost Translations – Germany

urgewald e.V. – Germany

Abibinsroma Foundation – Ghana

Alliance for Empowering Rural Communities – Ghana

Organización de Mujeres Tierra Viva – Guatemala

Campaña Guatemala sin hambre – Guatemala

PAPDA – Haïti

Centre de Recherche et d’Action pour le Developpement (CRAD) – Haiti

Ambiente, Desarrollo y Capacitación (ADC ) – Honduras

Rashtriya Raithu Seva Samithi – India

All India Union of Forest Working People AIUFWP – India

Centre for Financial Accountability – India

People First – India

Environics Trust – India

ToxicsWatch Alliance – India

Food Sovereignty Alliance – India

Indonesia for Global Justice (IGJ) – Indonesia

kruha – Indonesia

Wahana Lingkungan Hidup Indonesia (WALHI) – Indonesia

JPIC Kalimantan – Indonesia

تانيا جمعه /منظمه شؤون المراه والطفل – Iraq

ICW-CIF – Italy

PEAH – Policies for Equitable Access to Health – Italy

Focsiv Italian federation christian NGOs – Italy

Schola Campesina APS – Italy

Casa Congo- Italy

ReCommon – Italy

Japan International Volunteer Center (JVC) – Japan

Team OKADA – Japan

taneomamorukai – Japan

VoiceForAnimalsJapan – Japan

Keisen University – Japan

000 PAF NPO – Japan

Missionary Society of Saint Columban, Japan – Japan

Migrants around 60 – Japan

Mura-Machi Net (Network between Villages and Towns) – Japan

Japan Family Farmers Movement (Nouminren) – Japan

Pacific Asia Resorce Center(PARC) – Japan

A Quater Acre Farm-Jinendo – Japan

Friends of the Earth Japan – Japan

Alternative People’s Linkage in Asia (APLA) – Japan

Mekong Watch – Japan

Family Farming Platform Japan – Japan

Africa Japan Forum – Japan

ATTAC Kansai – Japan

ATTAC Japan – Japan

Association of Western Japan Agroecology (AWJA) – Japan

Mennovillage Naganuma – Japan

Phenix Center – Jordan

Mazingira Institute – Kenya

Dan Owala – Kenya

Jamaa Resource Initiatives – Kenya

Kenya Debt Abolition Network – Kenya

Haki Nawiri Afrika – Kenya

Euphrates Institute-Liberia – Liberia

Green Advocates International (Liberia) – Liberia

Sustainable Development Institute (SDI) – Liberia

Alliance for Rural Democracy (ARD) – Liberia

Frères des Hommes – Luxembourg

SOS FAIM – Luxembourg

Collectif pour la défense des terres malgaches – TANY – Madagascar

Third World Network – Malaysia

Appui Solidaire pour le Développement de l’Aide au Développement – Mali

Réseau CADTM Afrique – Mali

Lalo – Mexico

Tosepanpajt A.C – Mexico

Maya sin Fronteras – Mexico

Centro de Educación en Apoyo a la Producción y al Medio Ambiente, A.C. – Mexico

Mujeres Libres COLEM AC – México

Grupo de Mujeres de San Cristóbal Las Casas AC – México

Colectivo Educación para la Paaz y los Derechos Humanos A.C. (CEPAZDH) – México

Red Nacional de Promotoras Rurales – México

Dinamismo Juvenil A.C – México

Cultura Ambiental en Expansión AC – México

Observatorio Universitario de Seguridad Alimentaria y Nutricional del Estado de Guanajuato – México

Centro Interdisciplinario de Investigación y Desarrollo Alternativo U Yich Lu’um AC – México

The Hunger Project México – México

Americas Program/Americas.Org – México

Association Talassemtane pour l’Environnement et Développement (ATED) – Morocco

Espace de Solidarité et de Coopération de l’Oriental – Morocco

LVC Maroc – Morocco

EJNA – Morocco

NAFSN – Morocco

Fédération nationale du secteur agricole – Morocco

Association jeunes pour jeunes – Morocco

Plataforma Mocambicana da Mulher e Rapariga Cooperativistas/AMPCM – MOZAMBIQUE – Mozambique

Justica Ambiental – JA! – Mozambique

Community Empowerment and Social Justice Network (CEMSOJ) – Nepal

WILPF NL – Netherlands

Milieudefensie – Netherlands

Platform Aarde Boer Consument – Netherlands

Both ENDS – Netherlands

Foundation for the Conservation of the Earth,FOCONE – Nigeria

Lekeh Development Foundation (LEDEF) – Nigeria

Nigeria Coal Network – Nigeria

Spire – Norway

Pakistan Fisherfolk Forum – Pakistan

Gaza Urban Agriculture Platform (GUPAP) – Palestine

Union of Agricultural Work Committees – Palestine

WomanHealth Philippines – Philippines

Agroecology X – Philippines

SEARICE – Philippines

Alter Trade Foundation for Food Sovereignty, Inc – Philippines

Association pour la défense des droits à l’eau et à l’assainissement – Sénégal

Biotech Services Sénégal – Sénégal

Association Sénégalaise des Amis de la Nature – Sénégal

Alliance Sénégalaise Contre la Faim et la Malnutrition – Sénégal

Association Sénégalaise des Amis de la Nature – Sénégal

Alliance Sénégalaise Contre la Faim et la Malnutrition – Sénégal

Green Scenery – Sierra Leone

Land for Life – Sierra Leone

JendaGbeni Centre for Social Change Communications – Sierra Leone

Sierra Leone Land Alliance – Sierra Leone

African Centre for Biodiversity – South Africa

African Children Empowerment – South Africa

Cooperative and Policy Alternative Centre – South Africa

Fish Hoek Valley Ratepayers and Residents Association – South Africa

Consciously Organic – South Africa

Wana Johnson Learning Centre – South Africa

Aha Properties – South Africa

Sacred Earth & Storm School – South Africa

Earth Magic – South Africa

Oasis – South Africa

Envirosense – South Africa

Greenstuff – South Africa

WoMin African Alliance – South Africa

Seonae Eco Centre – South Africa

Eco Hope – South Africa

Kos en Fynbos – South Africa

Ghostwriter Grant – South Africa

Mariann Coordinating Committee – South Africa

Khanyisa Education and Development Trust – South Africa

LAMOSA – South Africa

Ferndale Food Forest and Worm Farm – South Africa

Mxumbu Youth Agricultural Coop – South Africa

PHA Food & Farming Campaign – South Africa

SOLdePAZ.Pachakuti – Spain

Amigos de la Tierra – Spain

Sindicato Andaluz de Trabajadores/AS – Spain

Salva la Selva – Spain

Loco Matrifoco – Spain

National Fisheries Solidarity(NAFSO) – Sri Lanka

Movement for Land and Agricultural Reform (MONLAR) – Sri Lanka

Agr. Graduates Cooperatives Union – Sudan

FIAN Sweden – Sweden

FIAN Suisse – Switzerland

Bread for all – Switzerland

Foundation for Environmental Management and Campaign Against Poverty – Tanzania

World Animal Protection – Thailand

Asia Indigenous Peoples Pact – Thailand

PERMATIL – Timor-Leste

Afrique Eco 2100 – Togo

AJECC – Togo

ATGF – Tunisia

Forum Tunisien des Droits Economiques et Sociaux – Tunisia

Agora Association – Turkey

Uganda Land Rights Defenders – Uganda

Hopes for youth development Association – Uganda

Uganda Consortium on Corporate Accountability – Uganda

Centre for Citizens Conserving Environment &Management (CECIC) – Uganda

Buliisa Initiative for Rural Development Organisation (BIRUDO)) – Uganda

Twerwaneho Listeners Club – Uganda

Alliance for Food Soverignity in Africa – Uganda

Global Justice Now – UK

Friends of the Earth International – UK

Compassion in World Farming – UK

Environmental Justice Foundation – UK

Fresh Eyes – UK

War on Want – UK

Friends of the Earth US – US

A Growing Culture – US

Center for Political Innovation – US

GMO/Toxin Free USA – US

Friends of the Earth US – US

Thousand Currents – US

Local Futures – US

National Family Farm Coalition – US

Community Alliance for Global Justice/AGRA Watch – US

Bank Information Center – US

Seeding Sovereignty – US

Yemeni Observatory for Human Rights – Yemen

Zambia Alliance for Agroecology and Biodiversity – Zambia

Zambian Governance Foundation for Civil Society – Zambia

Urban Farming Zimbabwe – Zimbabwe

Centre for Alternative Development – Zimbabwe

FACHIG Trust – Zimbabwe

Red Latinoamericana por Justicia Económica y Social – Latindadd – América Latina

European Coordination Via Campesina – Europe

Arab Watch Coalition – Middle East and North Africa

FIAN International – International

International Alliance of Inhabitants – International

Society for International Development – International

ActionAid International – International

International Accountability Project – International

Habitat International Coalition – General Secretariat – International

CIDSE – International

ESCR-Net – International

World Rainforest Movement – International

Transnational Institute – International

GRAIN – International

Original Source: grian.org

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Conference of the Parties to the Convention on Biological Diversity (COP16): Solutions for companies, losses for communities and biodiversity

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The Conference of the Parties (COP16) to the Convention on Biological Diversity (CBD) is being held from October 21st to November 1st in Colombia. This initiative has failed in its goal of halting the alarming loss of biodiversity. For 30 years, instead of putting an end to extractive companies’ destruction, the CBD’s proposals have worsened the situation – through actions that have undermined both the sovereignty of Indigenous Peoples and communities, and their ability to remain in the territories they inhabit and protect.

The destruction of biodiversity to feed corporate greed is readily apparent through alarming facts and figures: 54 percent of wetlands have disappeared since 1900; land degradation from human activities is causing the extinction of one sixth of all species; and 50 percent of agricultural expansion between 1980 and 2000 occurred on razed areas of tropical forest (1). In Asia, oil palm plantations have been the main driver of forest loss during this period.

32 years ago, during the Earth Summit held in Rio de Janeiro, Brazil, more than 170 countries pledged to take measures to halt this destruction. To this end, they signed the Convention on Biological Diversity (CBD). However, this initiative has failed spectacularly.

Despite their numerous declarations in support of taking action, and their adoption of goals and targets, governments have shown no real interest in taking the necessary measures to stop the destruction of biological diversity. By way of proof, one only has to review the targets established for the decade between 2010 to 2020, known as the Aichi Targets: none of them has been achieved.

The 16th Conference of the Parties (COP) to the CBD is being held in Cali, Colombia, from October 21st to November 1st, 2024. During this gathering, government negotiators aim to evaluate the countries’ progress in achieving the new targets set for the year 2030, which are included in the so-called Global Biodiversity Framework. Yet, over 85% of the countries missed the deadline to submit their new commitments before the start of the COP, revealing their ongoing lack of commitment (2).

To stop devastating biodiversity loss and try to reverse it, it would be necessary to put an end to the destruction in the first place. This destruction is caused by extractive oil companies, mining, agribusiness, plantations, hydroelectric dams, and other industries, as well as by other economic sectors that secondarily benefit from these destructive activities – such as airlines, banking, finance, investors, etc. Yet instead of stopping the destruction, the proposals implemented by the CBD tend to worsen the situation – through actions that undermine both the sovereignty of Indigenous Peoples and communities, and their ability to remain in the territories they inhabit and protect.

One of the concrete ways in which the CBD causes this kind of conflict is through the target known as “30 x 30,” which was promoted by large conservation NGOs. Its objective is for 30 percent of the planet – including the world’s land, fresh waters and oceans – to be declared as protected areas by 2030. However, this objective does not take into account the suffering and resistance of thousands of communities affected by the imposition of conservation areas in their territories – and the serious violations of their rights this has caused. Far from being a solution, this model of conservation without people actually generates conflict and violence, costing lives in the communities that lose control of the territories they inhabit.

Another major and worrisome threat coming from the Convention on Biological Diversity (and the corporate influence over it) is the inclusion of biodiversity offsets and credits as a legitimate mechanism to “repair” the destruction that companies have caused.

Through offsets, polluting industries assume the right to destroy territories, with the excuse that these damages and losses will be “offset” elsewhere on the planet. However, this is not possible. In a recent Statement, hundreds of civil society organizations warned that “biodiversity offsets can create conflicts over the right to own and use lands, fisheries and forests, and can compete with agroecology and smallholder agriculture, undermining food sovereignty. [These offset projects] will likely drive land grabbing, the displacement of communities, increased inequality in access to land, and human rights violations – just like carbon offsets do.”

This Statement warns that biodiversity offsets and credits seek to imitate carbon offsets and credits. But not only are they replicating the faults of carbon offsets and credits; biodiversity credits and offsets intensify negative impacts by including innumerable forms of life in a strategy of financialization. So far, these mechanisms have proven to benefit large corporations that continue to pollute – such as oil, mining and airline companies. They also benefit the associated chain of managers, certifiers, consultants and financiers that implement these mechanisms. Meanwhile, communities are suffering from the deception and impacts of these mechanisms, which have been widely documented by academia, the press, and other sectors.

We invite you to read the full statement, which also presents alternative proposals to another key point on the COP16 agenda: the financing of strategies to stop biodiversity loss.

This bulletin also includes articles about how tree plantations and offset projects are expanding and occupying territories, as well as other articles celebrating the resistance of communities.

One of the articles, from Gabon, documents the power of community resistance to Sequoia’s attempts to install 60,000 hectares of eucalyptus plantations in the Bateke Plateau region that would be used to generate carbon credits. Another article from the Republic of Congo describes how oil companies are grabbing land to set up tree plantations for the carbon market, so that they can greenwash their image. A third article reports from two provinces in Mozambique where eucalyptus plantations have obliterated the biological and genetic diversity of the machambas (traditional cultivation areas). In the wake of the pulp industry, major homogenization occurs, and the expression of the genetic diversity of seeds and local varieties disappears.

Another article analyzes the Thai government’s strategy to implement an offset-based climate policy, a concept which is inherently contradictory and which expands corporate control over community lands. And now the Thai government wants to extrapolate this idea from the climate and apply it to biodiversity. These offset projects would be carried out in “green areas” that would cover more than 50 percent of the country.

Finally, we present the third episode of the podcast entitled “Women’s Struggles for Land,” which aims to highlight the voices of women and their multiple forms of resistance to the occupation of their territories. This third episode, from Indonesia, was jointly produced with the organization, Solidaritas Perumpuan, and it recounts the experiences of women in the Kalimantan region facing plantation projects and REDD projects.

This collection of cases reveals how the kinds of actions proposed at the COPs affect people’s sovereignty over the territories they inhabit. Their sovereignty is indispensable in stopping the biodiversity crisis. In light of this situation, many peoples and communities around the world are reclaiming control of their territories and are fighting to defend them. In so doing, they are defending biological diversity and life itself!

(1) Estado actual y resultados de la IPBES | Biodiversidad Mexicana
(2) COP16: More than 85% of countries miss UN deadline to submit nature pledges – Carbon Brief

Orginal Source: World Rainforest Movement (WRM)

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Republic of Congo: expansion of tree plantations linked to the carbon market – the underside of an opaque business and greenwashing

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In Congo-Brazzaville, tree planting projects intended for carbon markets have proliferated over the past four years. This concerns large-scale developments of monocultures initiated by oil companies under the seductive term of carbon neutrality and promises of job creation for communities. In reality, they are neither a solution to the climate crisis nor a benefit for the communities of Congo.

Oil and gas industries represent the main source of global emissions. (1) Instead of reducing their emissions, they take advantage of human concern about climate change to promote misleading plans for the expansion of tree planting as a solution to offsetting their emissions. (2) In a vicious circle, very opaque plantation projects are developing, generating new sources of income for plantation companies and providing multinationals a justification to continue to pollute. Twenty years earlier, organizations were already sounding the alarm over greenwashing claims that the expansion of plantations could offset carbon emissions. (3) The devastating effects of these projects, however, do not appear in the advertising messages.

In the Republic of Congo, reforestation projects began in 1936, after colonial destruction. (4) A National Reforestation Service was created and a national afforestation and reforestation program put in place to install one million hectares of plantations. (5) In 2013, the country launched its first carbon project as part of the REDD+ process, the financing of which has not yet been resolved. (6) The expansion of carbon projects initiated by private entities begins in 2019, after several reforms including the revision of the Forest Code, the adoption of a REDD+ strategy and the establishment of a Carbon Task Force. (7)

In the space of four years, between 2019 and 2023, seven long-term lease contracts were concluded between the government and the extractive industries for a total of approximately 570,000 hectares- an area larger than the country of Luxembourg (see the map

Among the signatories of these lease contracts are European multinationals operating in the country and the consultancy firm Forest Management Resource (FRM). FRM is the pioneer of carbon plantation projects in Congo and is now associated with the majority of multinationals, with its omnipresence carrying the scent of mixing roles and conflicts of interest.

Let’s come first to the contracts, these are lease contracts for land the state inherited from the colonial era, this time leased out for the development of carbon compensation projects, thus encouraging the continuity of carbon pollution. This lease contract system presents a colonial reconquest of agricultural land obtained through colonial heritage (9), in a very opaque and non-consensual approach. The architecture of this approach is generally characterized by the absence of a framework to make the lease contracts public, thus reinforcing opacity of information that ought to be public. Specifically, we note the absence of community consultation before the start of certain projects. (10) This has been strongly criticized in several carbon projects developed around the world.

Concerning the area granted, these plantation projects are developing in a logic of land grabbing in which the government facilitates the lease of land it claims to be the “public domain of the State”, under the law n°9-2004 of March 26 2004. But this claim of the State remains contested, especially since articles 2, 5 and 23 of the Constitution of October 25, 2015 advocate that national sovereignty is vested in the people. Another thing to note is that the ratio between the area granted in the leases and that targeted for plantations does not match. In fact, the total area to be planted adds up to 380,000 hectares out of the 570,000 hectares granted in leases. This raises the question about the use of those portions of land which these projects do not mention.

In addition to opaque information and land grabbing, we also note the use of misleading and seductive terms such as carbon neutrality and the promise of job creation for communities. According to various studies, monoculture tree plantations actually have a low sequestration potential compared to that of forests; monocultures also consume large quantities of water and negatively affect natural ecosystems. (11) In essence, to set up the plantations, all or part of the existing vegetation is destroyed in order to compensate for oil emissions.

Now, it is important to understand the impact of the expansion of these projects on forest-dependent communities and what is behind these projects.

FRM COFOR: communities question an opaque carbon market

In 2019, Forêt Ressources Management, created a subsidiary called Congo Forest Plantation (COFOR), a company under Congolese law. The same year, it signed a long-term lease contract with the government of Congo to develop the reforestation at Madingou-Kayes. The company is currently developing four projects with its investors. Interviewed by the Makanisi blog, the owner of the company stated that the projects will establish acacia-cassava and eucalyptus plantations, develop a sawmilling and plywood sector with an attractive promise of creating thousands jobs for communities. (12) Another objective of the project is to contribute to climate change mitigation through plantations. (13)

But the reality looks very different. Madingou-Kayes communities interviewed state that “we do not have access to either the lease contract or the project document. We are even surprised to hear that there are carbon projects here. All we know is not to enter this forest…”. Apart from the lack of information, the consent of the communities was evidently not obtained before the start of the project.

BACASI: greenwashing, violence against communities, a useless project for the country

The BaCaSi project is a partnership of several entities, among others: French oil company Total Energies and the company Forêt Ressources Management, via its Congolese subsidiary Forest Neutral Congo and the Republic of Congo. The project aims to develop a 40,000-hectare monoculture plantation within a project area of 55,000 hectares (14), while paradoxically, the area conceded as lease in 2022 is 70,089 hectares. This raises questions about other unstated objectives of the project.

In addition, the project is said to involve ‘a partnership based on advanced local agriculture and forestry, serving integrated development and climate action, with co-benefits such as jobs as well as social projects in the areas of nutrition, health and education.’ (14)

However, research by local and international organizations has revealed that this is a very controversial project. In particular, farmers and indigenous populations were ordered to leave their land, an indication of the project’s grabbing policy, some land-owning communities also received low compensation from the authorities (some at a rate of one dollar per hectare) and lost their livelihoods, which reinforces their food insecurity and poverty. (15) The revelations about the Bakasi project do not stop there. “Because this is not only be about carbon credits, the plantation in reality will only offset 2 percent of the carbon emissions of the oil company Total Energies, so behind this operation, is a question of money and not a question of corporate philanthropy” remarks a human rights defender who concludes that this project is not useful for the Republic of Congo.

Sequoia plantation: wood processing and opaque credit ambition

After multiple attempts to develop a destructive plantation project which has been held in check by communities and civil society in Gabon (16, see also article in this bulletin), the company Séquoia Plantations found refuge in the Republic of Congo, thanks to significant support granted by the authorities, declared one of the company’s managers. (17) Sequoia, founded by the multinational OLAM, is now part of the Equitane group, based in Dubai. Two lease contracts have been concluded for two projects currently under development: a 36,000-hectare replanting project was granted in May 2023 and the 69,000-hectare project obtained a lease in 2022, representing a total investment of 96.5 million Euros. (18)

Although according to the project document (19), the project focus is on the establishment of new tree plantations, plantation wood is already being harvested and processed at the site, thus raising questions about adding new to old plantations. Indeed, comments by the company manager point to objectives beyond those acknowledged in the project documents. During an interview (19), the manager suggested that his company will carry out large-scale plantations, with a view to fighting climate change and while reducing their carbon footprint. On the other hand, a resident of Mandingou-Kaye denounces the lack of accessibility to the lease contract and a consultation process tailored to local authorities. It is important to ultimately establish the existence of an unacknowledged carbon agenda and that the projects were developed with only partial information available.

ECO ZAMBA : excessive opportunism and unpredictable impacts

EcoZamba is a project of the National Oil Company of Congo, taking place in the savannah zone of the Congo Plateau. A 30-year lease contract was concluded in 2024 with the government. The contract grants the company the use of ​​168,720 hectares of land. Afforestation and agroforestry projects said to cover 50,000 hectares aim, among other things, at the sale of carbon credits. (20)

Some NGOs are skeptical about the impacts of this project on communities and the environment. According to them, “reforestation is not the priority oil companies. Their calling is to produce and market oil. They are launching into a sector that is not theirs. It’s out of simple opportunism. Environmentally, we are losing our savannah ecosystem with impacts on animals, birds and insects that can only thrive in savannah areas.” The cost of financing the project has not been revealed, and neither has the lease contract been made public. (21)

RENCO : the Mbé carbon garden project

The government of the Republic of Congo and the company RENCO GREEN SARLU, a subsidiary of the Italian multinational RENCO SPA, signed a partnership agreement on July 28, 2023 as part of the Carbone-Mbé Garden initiative. The project aims to establish acacia plantations on 40,050 hectares and market the carbon of the planted trees. Project plans include the proposal to establish 1,200 hectares of agroforestry plantations for the benefit of communities, following an “Acacia-Manioc” agroforestry model, with the plan to set up one hundred and fifty (150) hectares per year and rotations of eight years. (22)

The existing law grants exclusivity of the carbon credits generated in the plantations established on the lease lands that are part of the State forest domain to the private company that holds the lease. Thus, ultimately, the project does not provide for any benefit sharing plan from the carbon sold with the communities.

Additional carbon projects have been awarded in the Republic of Congo, in the forestry and conservation industry sectors. Among others, the forest industry of Ouesso (23); the logging companies Congolaise Industrielle de Bois and Yuan Dong Forestry Company, and the conservation NGO Widlife Conservation Society have been awarded permits for carbon projects. (24) Also, African Park Network, manager of the Odzala-Kokoua National Park, has expressed its intention to diversify its field of activity into carbon credits. (25)

Ultimately, the interest of oil extraction companies remains to continue to extract fossil fuels, as well as to do business in the carbon market, which provides a double benefit for them. (26) To do this, they develop deceptive projects, seduce communities and use very opaque approaches. Meanwhile, the roots of the problem remain intact, including: climate change caused by the use of fossil fuels and communities lacking access and protection of their customary lands. So, no matter how large it is, no tree plantation will ever be able to absorb the carbon emitted by oil activities and will never solve the problems of communities dependent on land and forests.

Bernadin Yassine NGOUMBA, defender of human rights and the environment, and the WRM

(1) Rapport Agence internationale de l’énergie (AIE 2023) : 33 pour cent pour le pétrole et 23 pour cent pour le gaz naturel. https://www.iea.org/reports/world-energy-outlook-2023
(2) WRM. Expansion des plantations d’arbres pour les marchés du carbone. Décembre 2023.
(3) Déclaration du Groupe de Durban. 2004.
(4) Jean, B. et Delwaulle, – J.C. Les Reboisements en République Populaire du Congo. La Chronique Internationale. 1981, Vol. XIII, 2.
(5) Service National de Reboisement (http://snrcongo.free.fr/ ) créé en 1986 et Programme National d’Afforestation et de Reboisement (PRONAR) créé en 201. https://tinyurl.com/4cx47zuc
(6) RP Sangha Likouala, document de projet. https://tinyurl.com/4h9js8y3
(7) Code forestier revisé :  Loi 33 du 08 juillet 2020 portant code forestier, art. Titre 10 sur les crédits carbone, art. 177 et suivant (https://www.sgg.cg/codes/congo-code-2020-forestier.pdf) ; strategie REDD :  Stratégie REDD+, 2018; task force carbone : Communiqué de la session inaugurale de la mise en place de la Task-Force Carbone, février 2024.
(8) Pigeaud, Fanny. Dans le bassin du Congo, la Françafrique fait feu de tout bois. Pulitzer Center, 2024.
(9) Raison, Jean-Pierre. La colonisation des terres neuves intertropicales. Persée. 1968, 5-112.
(10) REDD Monitor, Les dirigeants autochtones n’ont pas été consultés sur l’accord REDD de 180 millions de
dollars conclu par la coalition LEAF dans l’État du Pará. https://reddmonitor.substack.com/p/indigenous-leaders-were-not-consulted
(11) Total au Congo, une opération de Greenwashing destructice. Comité catholique contre la faim et pour le développement – terre solidaire. 2022.
(12)  Le Congo mise sur l’agroforesterie et les puits de carbone en savane. Malu-Malu, Muriel Devey. s.l. : Makanisi, 2021.
(13) Paul Bertaux et al. Les plantations forestières en Afrique Centrale. 2020.
(14) Le projet BaCaSi : un partenariat pionnier pour le développement durable en République du Congo. Total Energie. 2022. Voir aussi : Loi n°7-2022 du 26 janvier 2022 portant approbation de la convention de partenariat entre le gouvernement et les sociétés Total Nature Based, Congo Forest Company et Forest Neutral Congo.
(15) Des paysans expulsés pour des crédits carbone au Congo. Tiassou, Kossivi. 2023.
(16) Haut-Ogoou” : Sequoia plantations face au rejet des population malgré l’opportuinité d’emploi. Libreville : s.n., 19 septembre 2023, Ethique media Gabon.
(17) Singh, Satinder. Une déléguation de la société Sequoia chez Rosalie Matondo. Page facebook du MEF. Brazzaville, 19 Janvier 2024.
(18) SEQUOIA Plantation. Note d’information: La situation de l’eucalyptus en République du Congo. 2024. p. 4-5.
(19) Barot, Shailesh. Exploitation forestière: la société Sequoia plantation obtient une concession de 35 961 hectares. Brazzaville, 13 mai 2023.
(20) Signature d’un bail emphytéotique entre le gouvernement congolais et la SNPC. Agence d’information environnementale. s.l., 2024.¸ Projet Eco Zamba : la SNPC s’engage dans la plantation d’acacias pour compenser son impact environnemental au Congo.  Fatshimetrie. s.l., 2023.
(21) Congo-B: la compagnie pétrolière nationale lance un projet de reforestation. RFI, 2023.
(22) Projet JACA-Mbé : RENCO Green Sarlu compte séquestrer 30 millions de tonnes équivalent carbone à l’horizon 2025. Agence d’information’environnementale. AIE. Voir aussi : Loi 33 du 08 juillet 2020 portant code forestier, art. Titre 10 sur les crédits carbone, art. 177 et suivant.
(23) Congo : Un accord pour commercialiser les réductions des émissions générées dans les Aac de Ngombé. Fédération Atlantique des Agences de Presse Africaine (FAAPA). s.l., 2024. Voir aussi : Projet Interholco AG
(24) Projet OLAM CIB; Projet SEFYD; Projet HIFOR de WCS, gestionnaire du Parc Nuabalé Ndoki;
(25) https://www.aci.cg/congo-economie-forestiere-necessite-de-diversifier-les-activites-du-parc-national-dodzala-kokoua-pour-promouvoir-lecotourisme/?amp=1
(26) La région de la Sangha en République du Congo. WRM. 2022.

Original Source: World Rainforest Movement (WRM)

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Opinion: Why we cannot celebrate the World Bank’s 80-year anniversary

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This July, the World Bank Group celebrates its 80th anniversary. But for women and communities across the Global South there is nothing to celebrate. In this op-ed originally published by Devex on 19 July 2024, three close partners of the Coalition (Titi Soentoro from Aksi!, gender, social and ecological justice” – Indonesia; Verónica Gostissa from Asamblea Pucara – Argentina; and Mbole Veronique from Green Development Advocates – Cameroon) share stories from their countries showing how the World Bank is exacerbating the exact problems it claims to solve.

This July, the World Bank Group celebrates its 80th anniversary. But for us — women rights defenders from Asia, Africa, and Latin America — there is nothing to celebrate.

While the World Bank is proudly presenting its successes in fighting poverty and building a greener future, the stories of communities in our countries paint a very different picture. From recent controversial projects to old ones where communities never found justice, the World Bank has a 80-year legacy of harm and impoverishment.

The negative impact of development projects can be long lasting. In 1985, the World Bank funded the Kedung Ombo Dam in Indonesia. Over 27,000 people were forcibly and violently evicted, with the military threatening those trying to resist. Forty years later, the harm inflicted remains unaddressed. Resettled women don’t have close access to water sources, health facilities, and a market. Pregnant women have failed to get checkups, while children have often dropped out of school and are being forced into early marriages. Yet, despite acknowledging the harm it caused, the World Bank keeps replicating old mistakes.

 

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Nachtigal hydropower project. Photo: World Bank Group

 

In 2022, a community in Cameroon filed a complaint raising serious concerns about the World Bank-funded Nachtigal hydroelectric project, one of the largest dams in Central Africa. Imposed without people’s participation, the project is destroying livelihoods, taking lands, causingdeforestation, and destroying sacred sites. Our Cameroonian sisters are particularly affected: They have lost access to the forests where they used to pick medicinal herbs and other key natural resources. The complaint process has come to an end, but the hopes for justice are extremely limited. The investigations conducted by the bank’s accountability mechanisms are known to be extremely lengthy — and only rarely lead to some remedy.

Civil society has been calling on the World Bank Group to strengthen its safeguards and accountability mechanisms, which are currently falling short of a human rights-based approach. But for every step forward, there has been a step back. Moreover, safeguards have often been used as a pretext to protect the institution from the international human rights legal system and to avoid applying more stringent standards.

Under its new president, Ajay Banga, the World Bank has been undertaking a series of reforms, to become bigger and bolder in its response to climate change. But the bank’s actions appear to indicate more of the same. Beyond the catchy slogans, the World Bank is still replicating a top-down and neocolonial development model that ends up exacerbating the exact problems the bank claims to solve. For example, in Indonesia the World Bank Group — despite its pledges to address climate change — is funding the expansion of the Java 9 and 10 plants, considered the largest and dirtiest coal plants in Southeast Asia.

In its 80 years of existence, it is our view, as shared with other civil society groups, that the World Bank has fueled the spiraling debt crisis, growing inequality, and climate change, with a disproportionate impact on women and children. Some stories — like the scandal of the child sex abuse case in Kenyan schools funded by the World Bank — have hit the headlines. Others, unfortunately, have remained largely unreported.

 

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Indigenous activists in the Salar del Hombre Morto. Credit: Susi Maresca

 

Last year, the International Finance Corporation — the World Bank’s private arm — approved a  $180 million loan to Allkem, for its Sal de Vida lithium mining project in Argentina’s Salar del Hombre Muerto. On paper, this investment falls under the bank’s green portfolio, because lithium is needed for the electric car batteries. In reality, this project has a catastrophic environmental impact, dried up one of the most important rivers in the area,, and violates the rights of the local Indigenous communities.

Before the project was approved, local communities and civil society organizations had sounded the alarm bell. They had prepared briefings on the project’s impacts and engaged with IFC to raise their concerns. But despite being recognized as “beneficiaries,” local communities say they are routinely ignored or silenced. The bank approved the loan without the community’s consent and did not take any action when local activists were threatened and criminalized.

As women defenders and caregivers, for generations we have been protecting our ecosystems sacrificed in the name of development and cared for our communities harmed under the pretext of economic growth. For generations, we have stood in solidarity with our sisters and brothers across the world who have been demanding a different type of development.

The World Bank cannot get it right by putting blinders on the past. The evicted Indonesian communities will not get their flooded land back. The women in Cameroon will not be able to access their precious medicinal herbs, as their forests have been cleared. And the Indigenous people in the Salar del Hombre Muerto lost their meadow near the river Trapiche, which dried up because of the huge volumes of fresh water used to extract lithium. But the World Bank is still on time to withdraw from controversial new projects, to provide remedy to the harmed communities, to speed up the investigation processes, and to seek meaningful consent before building something. Eighty years are enough. If bank President Banga wants the institution to grow bigger, it should learn from the past as it looks forward.

Original Source: Coalition for Human Rights In Development.

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