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World Bank is backing dozens of new coal projects, despite climate pledges

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New research shows that the International Finance Corporation, part of the World Bank Group, is providing back-door support to at least 39 new coal projects, constituting over 68 gigawatts of new coal-fired power capacity throughout China, Indonesia and Cambodia.

The International Finance Corporation (IFC), the private lending arm of the World Bank Group, is indirectly backing dozens of new coal projects throughout Asia, according to a new report, Blowing Smoke: How Coal Finance is Flowing through the IFC’s Paris Alignment Loopholes. The report, based on research conducted by Inclusive Development International, Recourse and Trend Asia, was published today, in advance of the World Bank Annual Meetings taking place in Marrakech next week.

“We found that the IFC is still backing new coal capacity through its investments in banks and other financial institutions despite its commitments to align those investments with the Paris Agreement,” said David Pred, executive director of Inclusive Development International. “This is the opposite of the sustainable development that IFC purports to promote, and it is having a devastating impact on coal-affected communities throughout Asia and the entire planet in this time of climate peril.”

A planned 700-megawatt coal-fired power plant called Jambi 2, to be located in Indonesia’s Jambi province, is among the new coal projects the IFC is indirectly supporting. The new report focuses on Jambi 2 as a case study for how the IFC’s lending ends up supporting new coal development and the impact that has on local communities. According to local advocates and community members interviewed by Inclusive Development International, Jambi 2 is a project the province doesn’t want and doesn’t need—one that will exacerbate the already devastating impacts of coal development in the area, including air and water pollution and related health issues. Yet Postal Savings Bank of China—an IFC intermediary and a major coal financier in the region—has provided a credit line to Jambi 2’s developer, China Huadian.

“Ongoing coal development in Indonesia, including the Jambi 2 plant, will accelerate climate change and its catastrophic consequences,” said Novita Indri, energy campaigner at Trend Asia. “It’s a slap in the face to Indonesia, an island nation that is uniquely vulnerable to rising sea levels and already suffering from extreme weather events.”

Postal Savings Bank of China is by far the largest financier of coal developers in the IFC’s portfolio. According to data compiled by Inclusive Development International and published alongside the new report, the IFC purchased a $300 million equity stake in Postal Savings Bank in 2015 and the bank has gone on to provide 418 billion RMB ($57.3 billion) in no-strings-attached credit lines and project loans to companies developing dozens of coal-fired power plants in the region. The bank has provided these loans at a time when much of the financial industry is shifting away from coal, implicating the IFC and the World Bank Group in the last vestiges of coal finance and the devastating impacts it has for coal-affected communities and the climate. The authors of the report are calling on the IFC to leverage its influence as a major shareholder to stop Postal Savings Bank from continuing to finance coal development.

“It’s hypocritical for the IFC to allow its banking clients to finance projects like Jambi 2 and other coal development in Asia while at the same time promising to align its lending with the Paris Agreement on Climate Change,” said Kate Geary, co-director of Recourse. “While committing to move away from coal on paper, the World Bank Group is failing to ensure that its investments aren’t  supporting coal power projects that are significant contributors to climate change and that wreak devastation on affected communities.”

These latest revelations come on the heels of reports last month that communities in Indonesia’s Banten province have lodged a formal complaint against the IFC for backing two new massive units in the Suralaya mega-coal complex. Similar complaints have been lodged against the IFC in the past, including regarding its support for coal expansion in the Philippines.

“The IFC has contributed to serious harms related to coal expansion in many countries,” added Pred. “Now it has a responsibility to repair the damage it has done and prevent future harm by requiring that all of its financial intermediary clients, including Postal Savings Bank of China, stop financing coal development immediately.”

Notes for editors:

Regarding IFC’s financial intermediary lending and “no coal” commitments

Inclusive Development International previously followed the money in the IFC’s financial-sector portfolio and published our findings in our Outsourcing Development investigative series, which exposed (among other things) the coal plants and mines the IFC was indirectly backing.

Since then, the World Bank Group has made a series of commitments designed to reform its approach to investing in financial institutions, reduce its exposure to coal and align itself with the Paris Agreement. Most prominently, in 2019 the IFC launched its Green Equity Approach, which requires financial institutions in which it holds shares to halve their coal exposure by 2025 and eliminate it from their portfolios by the end of the decade. In 2023, the IFC closed a major loophole that Inclusive Development International, Recourse and Trend Asia pointed out in the approach by updating the rules to restrict equity clients from financing any new coal projects.

However, the IFC’s flagship approach aligning its indirect lending operations with the Paris Agreement contains other loopholes and gray areas: it still allows equity clients to underwrite bonds for coal developers, and it allows clients to finance industrial projects that are powered by dedicated coal plants, a concept known as captive coal. And it is unclear how and whether the “no new coal” rule is being applied to existing clients’ corporate financing of coal developers. In fact, as our new research and report show, banks in which the IFC holds equity stakes—including Postal Savings Bank of China—have continued to provide financing to the developers of new coal projects.

Regarding our methodology

For this report, Inclusive Development International traced the International Finance Corporation’s money through financial intermediaries to new coal-fired power capacity in Asia. The full results are here.

We define new coal capacity as projects that have become operational since 2019; projects that are under construction; and projects that have been announced by developers. This data does not include projects that are listed as shelved or canceled, although developers regularly reactivate shelved projects after long periods of inactivity.

For all data on coal plants, including project names, generating capacity, development timelines and project owners, we relied on the Global Energy Monitor, which tracks energy infrastructure around the world. For data on project developers, including their current coal-generating capacities, development plans, and issuances of debt securities, we relied on the Global Coal Exit List, which the IFC also uses  to help its clients identify coal exposures in their portfolios.

All other data comes from research conducted by Inclusive Development International, Recourse and Trend Asia into corporate filings, the International Finance Corporation’s project disclosures, and site visits in Indonesia.

Source: inclusivedevelopment.net

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No Heritage Without its People: Why Ngorongoro Cannot be a World Heritage Site and an Eviction Zone

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The Tanzanian government, under the guise of “conservation,” restricts Maasai livelihoods and denies access to essential services forcing Indigenous residents away from their ancestral lands and turning their heritage into a playground for safari tourists.

As the 48th Session of the World Heritage Committee begins July 19, UNESCO continues to legitimize the continued forced displacement of the Maasai from Ngorongoro. If UNESCO cannot ensure that the World Heritage designation protects the rights of its Indigenous custodians, then the Committee must remove the Ngorongoro Conservation Area from the World Heritage List.

Increased international pressure is imperative to hold UNESCO accountable and protect the lives and rights of the Maasai!

Read our Open Letter to the World Heritage Committee.

Source: oaklandinstitute.org

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Rush: Global Scramble for Minerals Wages War on People and Planet

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As governments and corporations scramble to secure critical minerals, a new Oakland Institute report exposes the forces fueling today’s unprecedented mining boom. RUSH: Global Scramble for Minerals Wages War on People and Planet dismantles the dominant narrative that massive amounts of minerals are needed for the energy transition, revealing instead a potent convergence of political, military, and corporate interests racing to control the resources that underpin modern warfare and artificial intelligence.

“Securing access to critical minerals is reshaping international relations and foreign aid as competition between the US and China becomes a new geopolitical battleground,” said Anuradha Mittal, Executive Director of the Oakland Institute. “The costs are being borne by communities around the world as this global race drives wars and violence, results in land grabs, forced displacement, devastating pollution, and the irreversible destruction of lands and livelihoods,” Mittal continued.

With the Pentagon shifting towards an “AI-first” warfighting stance, the US military-industrial complex is rapidly integrating tech and AI firms with a mutual interest in locking down critical mineral supplies. The report exposes key players positioned to profit from a resource boom already drawing trillions in investment. These include ventures tied to the Trump family, billionaire-backed outfits such as KoBold Metals, an AI-driven mining firm supported by Bill Gates, and defense-tech companies like Palantir and Anduril, among others.

To justify a massive scale up of mineral extraction, governments, corporations, and international financial institutions like the World Bank, frame critical minerals as indispensable to the green transition and as a pathway to prosperity for the Global South. However, RUSH documents that more than 70 percent of critical mineral demand today comes from industries unrelated to the energy transition, including the automotive, aerospace, military, communications, and technology sectors. Rapid growth in artificial intelligence, data centers, surveillance technologies, and military spending is expected to increase this demand massively.

“Renewable energy deployment, such as wind and solar, requires only a fraction of the minerals that corporations plan to extract in the coming decades,” said Andy Currier, Oakland Institute Policy Analyst and report co-author. “But growing military demand and stockpiling of materials like copper, lithium, nickel, and cobalt will undermine the energy transition, diverting critical resources away from urgently needed climate solutions,” Currier continued.

RUSH warns that the acceleration of resource extraction poses a catastrophic threat to both ecosystems and human survival. In response, Indigenous groups and frontline communities are leading a vital, global resistance to defend their territories. It is, however, undermined by a dangerous myth that expanding extraction is necessary to fix the climate crisis.

“The report issues a resounding call to challenge this false narrative to stop the untenable rush for minerals before it becomes an irreversible global catastrophe,” warned Oakland Institute Policy Director and report co-author, Frederic Mousseau. “The stakes could not be higher. If left unchecked, the global mining rush will trigger hundreds of new mines in a short period. The resulting human and planetary devastation will be at a scale never seen before – livelihoods will be destroyed, millions will be displaced, and environmental destruction will become irreversible,” concluded Mousseau.

Read the report

Source: oaklandinstitute.org

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NGO WORK

Acholi land dispute threatens Shs3bn govt-backed Cassava Factory in Pader

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Affected residents demonstrate at acholibur town council offices over a disputed 179-acre piece of land earmarked for a government and gulu archdiocese-backed cassava processing factory in pader district.

Pader, Uganda: A protracted land dispute in Acholibur Sub-county, Pader District, is threatening to stall a Shs3 billion cassava processing factory project jointly backed by the Government of Uganda and the Gulu Archdiocese, raising fears over the future of one of northern Uganda’s most significant agro-industrial investments.

The proposed cassava factory, which is being spearheaded by the Gulu Archdiocese with support from the Uganda Development Corporation (UDC), is expected to boost value addition, create employment opportunities and improve household incomes for thousands of cassava farmers across the Acholi sub-region.

At the centre of the dispute is a 179-acre piece of land claimed by two families, the estate of the late Ignatius Lakere Latigo and that of the late Odwong Joseph Lagoro, both of which maintain ownership rights over the property earmarked for the project.

The dispute escalated following a court-directed boundary opening exercise conducted by a joint security team led by Pader Resident District Commissioner Amos Banyizi. Several affected families have since protested the exercise, claiming it was carried out without their knowledge or participation.

Families question boundary exercise

Mr. Latigo Morris, administrator of the estate of the late Ignatius Lakere Latigo, said his family was never notified about the recent boundary demarcation despite earlier agreements that required all stakeholders to be involved.

He recalled that a stakeholders’ meeting held last year, attended by Archbishop Emeritus John Baptist Odama of the Gulu Archdiocese and other parties, had resolved that any future activities on the disputed land would involve all affected families.

According to Morris, his family was shocked to find the RDC accompanied by armed security personnel carrying out activities on land they claim belongs to them.

“We expected dialogue and participation of all stakeholders before any action was taken,” Morris said.

Local leaders have also questioned how the exercise was conducted.

The LCIII Chairperson of Acholibur Town Council, Okumu Robert, said his office was neither informed nor requested to mobilise residents before the boundary opening exercise.

Mr. Ocen Paul, one of the affected stakeholders, appealed to government to intervene, warning that nearly 150 families could lose land if the matter is not handled transparently.

He further alleged that influential individuals could be influencing the ongoing demarcation despite what he described as valid documentation showing that the affected families still hold an active 49-year lease over the land.

Source: dailyexpress.co.ug

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