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Nature ignored in European recovery funding, say campaign groups

Member States plan pitiful amounts of spending from the €672 billion Recovery and Resilience Facility (RRF) to protect and preserve nature, in spite of EU requirements and the generally poor state of biodiversity across the continent, say civil society groups ahead of Thursday’s meeting of European environmental ministers.  

Although the EU has planned an ambitious Biodiversity Strategy for 2030 and set a target of 37 per cent spending within the RRF on climate and nature protection measures, Member States are completely neglecting such projects in their draft recovery plans, the groups outlined in a position paper sent to ministers before the 18 March Council.   

For example, Bulgaria’s green pillar, the part of the plan outlining proposals for environmental and climate spending, foresees just 0.72 percent for biodiversity which is even less than in a previous draft. The Polish plan also calls for the adoption of a special act on anti-drought investments in Poland, which contains new rules that would actually undermine the protection of Poland’s biodiversity and water resources. This lack of attention to biodiversity protection is all the more alarming given that the European Environmental Agency estimates 81 per cent of habitats in Europe are in a poor state.  

While Member States have until 30 April to finalise their recovery plans, many have yet to open the plans to public consultation and publish key information about what types of programmes they plan to fund. Thursday’s Environment Council is an opportunity for ministers to take a leading role in the further development of these plans in order to make them a powerful tool for catalysing the transformation of EU economies.  

Daniel Thomson, EU policy officer for biodiversity with CEE Bankwatch Network, said ‘After decades of underinvestment and neglect, biodiversity and nature conservation must be the priority in building back better. Yet Member States are completely overlooking the potential of EU recovery funds. Many draft plans do not include a single measure to address the failing health of nature,  despite the golden opportunity to finally start investing in improvements.’  

Gabriel Schwaderer, Director of EuroNatur, said ‘The National Recovery and Resilience Plans are expected to deliver on environmental objectives, yet we wonder how the EC has assessed them and what role the EU Taxonomy plays and will play in the future. We need a reliable tool with transparent criteria – especially to avoid greenwashing.’  

For more information contact 
Daniel Thomson EU policy officer for biodiversity CEE Bankwatch Network: daniel.thomson@bankwatch.org  
Anja Arning Head of Communications EuroNatur: anja.arning@euronatur.org

EU bank failing on transparency and openness, warns civil society

The analysis ¹ comes as part of the first commenting window that closed today during the ongoing review of the Bank’s new Transparency Policy.² It follows an EU court ruling³  confirming that NGOs must be able to hold the Bank accountable for its decisions. As the financial arm of the EU, the EIB is required to guarantee the right to access information held by public bodies and to conduct its work as openly as possible while ensuring civil society participation. 

The groups’ findings match the rankings of the 2020 Aid Transparency Index, an annual measure of transparency for the world’s major development agencies, which placed the EIB 28 of 47 institutions with a grade of only 58 of 100 points.

The analysis shows the new draft Transparency Policy fails to address serious shortcomings in the EIB’s current policy and practice.

The EIB provides almost no information about its environmental and social due diligence before approving a loan, denying the public the right to know on what basis it made such a financing decision. Even after a loan decision is made, many documents of public interest are kept confidential by the EIB instead of just being published.   

The new policy is particularly lax when it comes to requiring Bank clients to provide information. In particular, the EIB uses various intermediaries – commercial banks, state development banks and private equity funds – to help reach smaller clients than it could otherwise attract. 

Such lending has doubled in the last 15 years, in 2020 accounting for almost 40 per cent of the Bank’s operations. In spite of this volume, the Bank requires no information for this type of financing to be made available, prompting the European Parliament to call for this review of the transparency policy.

In light of these, the groups are urging the EIB to amend the draft Transparency Policy before final approval at the end of 2021, pending the adoption from its 27 EU Member State shareholders.

Anna Roggenbuck, policy officer with CEE Bankwatch Network, said, “It is outrageous that the EIB still sticks out among other development institutions when it comes to transparency. The Bank should start publishing environmental and social documents in advance of project approval in order to give civil society, especially people impacted by its projects, an opportunity to express their opinions directly to the Bank. Transparency is a two-way street, meaning the Bank should be ready to listen and engage in a dialogue. So far the EIB is not up to the task.”

Xavier Sol, Director with Counter Balance, said, “We urge EIB management and shareholders to raise the bar on transparency. The draft Transparency Policy proposed by the Bank is problematic, so prompt action is needed to make sure that the EIB becomes a more accountable and democratic institution. It is high time that the ever increasing macroeconomic responsibilities of the EIB are matched by an offensive on transparency. If not, decisions impacting people and regions will continue behind closed doors”

Sebastian Bechtel, ClientEarth lawyer, said, “One of the EU’s top courts has just confirmed that NGOs must be able to hold the EIB accountable where it fails to comply with environmental law. But to do so, NGOs must have access to the right information and the EIB must proactively inform civil society about the underlying rationale of its decisions. Unfortunately, the EIB’s draft transparency policy falls short here – suggesting a possible failure to recognise both the gravity of this judgment and the vital role of civil society in fulfilling the European Green Deal.”

 

For more information contact:

Anna Roggenbuck

Policy officer, CEE Bankwatch Network

annar@bankwatch.org

+48-509970424

 

Xavier Sol

Director at Counter Balance

xavier.sol@counter-balance.org

+32 473 223 893

 

Notes 

[1] The analysis is submitted as a joint contribution to the EIB transparency review: LINK

[2] https://consult.eib.org/consultation/tpconsultation-2020-en/ 

[3] CaseT-9/19 ClientEarth v EIB 

How are CEE governments planning to use EU funds for the transition of coal regions? New Bankwatch report gives journalists tools to monitor the process

CEE Bankwatch Network has been actively involved in the development of the TJTP process since it was announced in January 2020 and is today publishing an analysis of six plans in central and eastern European countries: Bulgaria, the Czech Republic, Estonia, Hungary, Romania and Slovakia. 

For each country, the formal process of preparing the TJTP is outlined. Then, Bankwatch experts in each country analyse the functioning of the working groups tasked with drawing up the TJTPs, pointing out how they might improve their processes; the quality of participation, including how much the voices of locals are included, is assessed; timelines, sometimes too rushed to generate a meaningful process, are analysed too. 

At the end, the paper includes recommendations for national authorities and the European Commission, based on the three biggest threats to the quality of the TJTPs: poor participation, a disproportionate influence of the industry, and a narrow focus on job creation (instead of a more holistic approach focused on the redevelopment of the region). 

Each of the six countries has its own section detailing the formal process, followed by dedicated sections for each topic related to implementation of the TJTP design process. This document can be a useful tool for any journalist who wants to monitor from the start how regions and governments are planning to use the new EU money coming into coal regions. Questions persist about the management of the process, the overwhelming influence of corporations, or the superficial manner in which locals are asked for input.

“We’ve been keeping an eye on just transition plans from the start in all the countries in the region and, now that we’re fully in the planning process, we’re starting to get worried,” Alexandru Mustață, Bankwatch Just Transition coordinator, says. “The process is rushed and some governments are pushing specific interests without taking into account all voices from the regions.”

“This means there is a risk that countries will only submit a list of projects which can spend public money quickly – instead of using this process to create solid strategies for the redevelopment of these communities, with buy-in from locals and which would serve as guidance for decades to come.”

For more information, contact: 

Alexandru Mustață, Just Transition coordinator

Email: alexandru.mustata AT bankwatch.org 

Tel.: +40726770808   

Vujadin Berberović, local activist who campaigned against Corridor Vc in Bosnia and Herzegovina, passes away

In October 2020, a Bankwatch fact-finding mission monitoring the social and environmental impacts of the section of the Corridor Vc project south of Mostar met with Mr Berberović to learn about the ramifications the project could have for his own property in the village of Ortiješ and to hear about the concerns of other community members.

The news about Mr Berberović’s passing on Sunday, February 7, came as a shock to us, and we wish to send heartfelt condolences to his family and friends. We stand with you in this difficult time, and will continue to do our utmost to amplify your concerns about the Corridor Vc project to decision-makers.

Mr Berberović fled the area during the 1990s war, but rebuilt his life in the village of Ortijes after returning with his family, caring for his vineyard, following in the footsteps of his ancestors.

When we met him, Mr Berberović was visibly distraught by the prospects of his precious vineyard being destroyed by the currently planned route of the motorway project, as well as by his experience fighting to make his and the community’s voices heard among decision-makers. His perseverance is an inspiration.

We are grateful to have had the opportunity to speak to Mr Berberović himself and thankful for his help, enabling us to meet with other community members concerned about the project. Their testimonies informed the report Bankwatch released just last week.

Bankwatch continues to stand with the community to demand justice for Mr Berberović and all local residents affected by the project.

Read also:

Connecting or Dividing? The South Mostar section of Corridor Vc in Bosnia and Herzegovina 

Bankwatch je duboko potresen saznanjem o smrti Vujadina Berberovića, predsjednika Udruženja povratnika Srba u Mostar, Bosna i Hercegovina, koji je odigrao ključnu ulogu u mobilizaciji svoje zajednice da bi osigurao da i lokalni stanovnici budu ravnopravni sudionici u razvoju projekta koridora Vc.

U oktobru 2020. Bankwatch delegacija koja je radila na utvrđivanju činjenica o socijalnim i okolišnim uticajima dionice projekta Koridor Vc južno od Mostara, sastala se s g. Berberovićem kako bi prikupila više informacija o posljedicama koje bi projekt mogao imati za njegovo vlastito imanje u selu Ortiješ i razgovarala sa sa ostalim članovima zajednice o njihovim strahovima.

Vijest o smrti gospodina Berberovića u nedjelju, 7. februara, bila je za nas šok i želimo uputiti iskreno saučešće njegovoj obitelji i prijateljima. Stojimo uz vas u ovom teškom vremenu i nastavit ćemo činiti sve što možemo kako bismo vaše brige i strahove vezane za projekt Koridor Vc približili donositeljima odluka.

Gospodin Berberović je morao napustiti svoj dom tokom rata devedesetih, ali je obnovio svoj život u mjestu Ortiješ nakon povratka 1998. s obitelji, brinući se o svom vinogradu, slijedeći korake svojih predaka.

Kad smo ga upoznali, g. Berberović je bio vidno zabrinut za budućnost svog dragocjenog vinograda, kojem je prijetilo uništenje trenutno planiranom trasom projekta autoceste. Ali on je već imao iskustvo u borbi da se njegovi i glasovi zajednice čuju među donositeljima odluka. Njegova ustrajnost je nadahnuće.

Zahvalni smo što smo imali priliku lično razgovarati sa gospodinom Berberovićem i zahvalni na njegovoj pomoći, omogućujući nam sastanak s ostalim članovima zajednice koji su zabrinuti zbog projekta. Njihova svjedočenja dopunila su izvještaj koji je Bankwatch objavio prošle sedmice.

Bankwatch i dalje stoji uz zajednicu tražeći pravdu za g. Berberovića i sve lokalne stanovnike pogođene projektom.

Secrecy surrounding €672 billion in EU recovery funding jeopardises building back better

A survey of how the spending plans [1] are being prepared in 20 countries finds that almost no one is opening the plans to public scrutiny, nor are these being subjected to strategic environmental assessments, both of which are required by EU law. 

Treaties like the Aarhus Convention on Access to Information, Public Participation in Decision-Making and Access to Justice in Environmental Matters [2], to which each EU Member States is a party, require public participation for any plan, programme or policy related to the environment, including financial and budgetary plans, such as the recovery and resilience plans. 

Last week the European Commission issued guidance on the preparation of the plans that recommended Member States consult civil society over the investment list, which are due in April. In a follow-up letter [3] to Commission Vice-Presidents Timmermans and Dombrovskis, the groups outlined how hastily brushing aside these legal requirements will imperil the EU’s own goal of becoming a net-zero emitter of greenhouse gases by 2050.

 

 

 

Read more about the survey here.

 

Raphael Hanoteaux, EU funds policy officer at CEE Bankwatch Network, said, “Recovery cannot come without resilience, so member states must plan to build back better. Investments in small-scale renewables, energy efficiency and a socially-just transition away from carbon heavy-industries are the types of community-focused projects that can move Europe forward. The Commission should press Member States to open the planning process and include the voices pushing for such funding.”

 

Markus Trilling, Finance and Subsidies Policy Coordinator at Climate Action Network (CAN) Europe, said “Member States are making investment decisions today which will shape our economies for decades. Now is the time to ensure these investments help us in the needed transformation towards a better society for all. This can not happen with citizens left outside, which is why public consultation processes are part of Europe’s legislative framework. ”

 

For more information contact :

 

Raphael Hanoteaux

EU policy officer

CEE Bankwatch Network

+32 496 205 903

raphaelh@bankwatch.org

 

Markus Trilling 

Finance and Subsidies Policy Coordinator

Climate Action Network (CAN)  Europe 

markus@caneurope.org

 

Notes 

[1] The assessment of the plans is available here: LINK 

[2] https://live.unece.org/fileadmin/DAM/env/pp/documents/cep43e.pdf 

[3] See the letter to the commission vice-presidents here: LINK

 

NEW REPORT: EU push for metals mining is a raw deal for people and environment

The full report can be found here: http://bankwatch.org/raw-deal

Despite long-term objectives of achieving a circular economy and reducing resource use, the European Green Deal plans to increase mining raw materials to meet demand for clean energy, renewables, and other hi-tech solutions at the forefront of the EU’s green development agenda. 

The European Commission has outlined extensive plans for securing access to ICT-related raw materials but mentions little about effectively dealing with risks associated with their extraction. For instance the EU estimates that for electric vehicle batteries and energy storage, it would need up to 18 times more lithium and five times more cobalt in 2030, and almost 60 times more lithium and 15 times more cobalt in 2050.

The Bankwatch report describes cases of environmental destruction, poor working conditions and a lack of sufficient public participation during the planning and implementation of metal mining and smelting operations, often backed by funds from the European Bank for Reconstruction and Development and the European Investment Bank. 

In one instance, gold mined in Bulgaria that contains levels of arsenic not permitted in the EU is shipped instead to Namibia for smelting, at the expense of workers’ health.

The report calls on the Commission to provide a clear vision and dedicate funds to overcome the problems related to raw materials mining. The EU should take the following actions to ensure that its new development model is sustainable:

  • the reduction of resource use as the underlying principle for any new publicly financed project;
  • the use of less-exploitative and toxic-safe technologies;
  • the restoration of old mining sites;
  • strict and efficient environmental, social and human rights due diligence for mining projects; and
  • the right for communities affected by the mines and surrounding facilities to have a say.

Anelia Stefanova, programme director at CEE Bankwatch Network and co-author of the report, said: ‘We welcome the increasing confidence about the feasibility of Europe’s decarbonisation, but we are concerned about the lack of safeguards in place to make it sustainable. The EU, with its financial institutions, cannot attempt to overcome the climate crisis at the expense of local communities, workers’ rights and biodiversity. ”

Daniel Popov, mining expert at Za Zemiata, CEE Bankwatch Network member and co-author of the report, said: “The EU needs to boost its scientific potential and deploy innovative technologies that are not associated with rights abuses and environmental destruction. Europe can move forward from technologies dependent on expensive, impactful and difficult to supply raw materials.”

For additional information please contact:

Anelia Stefanova
Programme director, CEE Bankwatch Network
E-mail: anelias@bankwatch.org
Mobile: +39 3338092492

Aleksandra Antonowicz-Cyglicka
Researcher, CEE Bankwatch Network
E-mail: ola@bankwatch.org
Mobile: +48 601325242

Daniel Popov
National Campaigner, Bulgaria, CEE Bankwatch Network, Za Zemiata
E-mail: dpopov@bankwatch.org
Mobile: +359 886818794