Bankwatch

Home > Archives for Press release

Press release

Boost for Cohesion funding can speed EU recovery with concrete guidance on how to spend it

The Commission’s proposal includes an additional EUR 50 billion for Cohesion policy spending and an increase from EUR 7.5 to EUR 40 billion for the Just Transition Fund aimed at transforming regions dependent on fossil-heavy industries. 

However the proposal lacks clear guidance on the possible conditions attached to these funds, especially with regards to spending for projects that address the threat of climate change and safeguard the environment. 

Raphael Hanoteaux, EU funds policy officer for CEE Bankwatch Network, said, “The growing consensus is that a green stimulus is the surest way to recover from the pandemic and simultaneously address the threat of climate change, so today’s proposal from the Commission is a step in the right direction. 

But the flexibility in Cohesion spending cannot allow one cent to be spent on fossil fuels. Setting aside at least half of the EU budget for climate projects is the only responsible move for ensuring investments of today benefit future generations.”

Izabela Zygmunt, coordinator for Polish Green Network, said, “Cohesion is at a crossroads: where once it meant building infrastructure in countries that lagged behind, now the EU has embarked on an ambitious project to transform its economy to be climate neutral by mid-century. All countries must be a part of this journey and none should emerge saddled with emissions-intensive industries and fossil fuels assets, or economies that lag behind the rest of Europe in terms of climate-friendly innovation.

For a country like Poland, this means taking responsibility for the future direction of development and not spending money on projects that will slow progress towards climate neutrality. Doing so will undermine our competitiveness and miss an opportunity to catch up with Europe, whilst creating jobs, spurring innovation and cleaning our air.”

For more information contact:

Raphael Hanoteaux, EU funds policy officer
CEE Bankwatch Network
raphaelh@bankwatch.org

Izabela Zygmunt, coordinator 
Polish Green Network, CEE Bankwatch Network
Email: izabela.zygmunt@bankwatch.org

Uphill battle for Commission to bring Member States in line with new Biodiversity Strategy

The Biodiversity Strategy 2030 is a key pillar of the European Green Deal and is meant to ‘protect nature and increase the coverage and effectiveness of protected areas’, ‘restore damaged ecosystems’, ‘promote the sustainable use of forest [and other] ecosystems’, and to ‘fully integrate biodiversity.’

But a new Bankwatch publication documents examples from across central and eastern Europe where governments have not respected EU nature protection laws, oftentimes using the European financial support to construct damaging energy and transportation infrastructure.

Raphael Hanoteaux, EU funds policy officer with CEE Bankwatch Network

“The Commission recognises the need for better enforcement of environmental legislation, which is urgently needed. But you cannot protect old-growth forests while letting Member States get away with burning them for energy, and paying for roads to facilitate timber removal. 

To halt biodiversity decline, the EU will have to do three things simultaneously: rigorously deal with infringements, make sure that offenders are not supported by money from the European public purse and make other policies consistent with the biodiversity objectives.” 

For more information contact

Raphael Hanoteaux, EU funds policy officer

Email: raphaelh@bankwatch.org

Mobile: +32 496 205 903

Development Finance for Covid-19 Crisis Should Uphold Human Rights

Human rights should guide the use of billions of dollars committed by development finance institutions to address the Covid-19 health and economic crisis, the Coalition for Human Rights in Development said today.

The Coalition of 98 social movements, grassroots groups, and civil society organizations across the world has found that the pandemic is hurting vulnerable communities affected by development projects and exacerbating issues around inequality, violence, militarization, and surveillance.

The Coalition has tracked commitments of about US$90 billion in emergency response from all the major multilateral development banks. Additional resources are likely to be earmarked towards economic recovery, with the World Bank Group saying it is prepared to provide $160 billion for the next 15 months. As these funds are disbursed, however, stories of mismanagement and waste have also started emerging.

“Every dollar from a development finance institution could make a real difference for a family facing joblessness, hunger, or eviction, but it needs to reach them,” said Komala Ramachandra, Senior Business and Human Rights Researcher at Human Rights Watch, in Washington, DC. “Now more than ever, development banks should be guiding and overseeing their government and private clients to make sure their dollars have their intended impact.”

In a statement published today, the Coalition said that development finance institutions should ensure their funds – during the pandemic and beyond – reach the most vulnerable people and provide universal and equitable access to essential services, including health care, food, housing, water, sanitation, education, and sustainable livelihoods. This includes avoiding funding projects that harm the environment, displace people, or threaten food security. 

The Coalition also said that institutions should include protections against corruption and provide for transparency, accountability, and meaningful consultation with affected communities.

“Development financiers should guarantee that their beneficiaries – whether governments or companies – have protocols to prevent, monitor, and address rights violations and to mitigate the impact of Covid-19 on Indigenous Peoples,” said Aída Gamboa, Coordinator of the Amazon Program of Derecho, Ambiente y Recursos Naturales (Rights, Environment and Natural Resources, DAR) in Peru.

As Covid-19 containment measures have created additional risks and challenges for those speaking out against harmful development activities and standing up for their rights, the Coalition also urged development financiers to help protect civil society and ensure safety from reprisals.

“Environmental and land rights defenders are confronting increased risks and threats during this Covid-19 pandemic lockdown,” said Jaybee Garganera, National Coordinator of Alyansa Tigil Mina (Alliance to Stop Mining, ATM) in the Philippines. “Confined to our homes, we are unable to respond to destructive actions of mining, logging, dam projects, and other aggressive development activities. Meanwhile, for extractive industries it’s business as usual: mining operations are allowed to continue.”

Reports that resources previously earmarked for other uses are now being repurposed, often without transparency, have heightened concerns, the Coalition said.

“In the best of times, communities face enormous challenges in accessing information and participating in projects that will affect them,” said Elias Jika, Africa Program Coordinator for the International Accountability Project based in Malawi. “Development banks should follow the highest international standards to ensure communities’ right to information is fulfilled by proactively disclosing all funds that are being used for Covid-19 response and ensuring project information is accessible in local languages.”   

The Coalition said development finance institutions should ensure their funds do not exacerbate inequality issues through privatization or public-private partnerships, and that resources going to the private sector are used to support workers’ rights. The Coalition also urged development banks to cancel debt payments for borrowing countries at least until the end of 2020 and use their collective influence to push private actors to extend debt relief.

The Coalition for Human Rights in Development is a global coalition of 98 social movements, civil society organizations, and grassroots groups working together to ensure that development is community-led and that it respects, protects, and fulfills human rights. We do so by making sure that communities have the information, power, and resources to determine their own development paths and priorities and to hold development finance institutions, governments, and other actors accountable for their impacts on people, peoples and the planet. For a list of members of the Coalition, please see: https://rightsindevelopment.org/our-members.

Moment of truth for EU as over one million people and 100 NGOs call for green, healthy and just recovery

This press release was originally published on Transport&Environment  by Eoin Bannon, Media Manager. 

To date over 1.2 million people from across the world have joined campaigns at avaaz, WeMove Europe, and SumOfUs, supporting the call for a bold, green recovery in Europe. 

Alongside, the Green 10 coalition of environmental organisations have organised an appeal urging lawmakers to design a green, healthy and just recovery with a fund investing hundreds of billions into home renovations, scaling up renewable energy, restoring natural habitats, boosting public transport and zero-emission mobility, and greening agriculture.

The environmental groups have stressed that all recovery plans must put people’s wellbeing at the heart of the crisis response, deliver social benefits and protect workers’ rights through a ‘just transition for all’. The NGOs and petitioners warn against EU and national governments bailing out polluting industries involved in sectors such as gas, oil and coal, chemicals, cars and airlines. Any stimulus investments must be conditional on companies’ alignment with social, environmental and climate objectives. The EU must improve the environmental safeguards of the next budget, dedicating at least 50% to climate and the environment and excluding all fossil fuel subsidies.

Green 10 letter to European Commission president Ursula von der Leyen: Ensuring that the MFF 2021-27 and EU ‘recovery fund’ are consistent with the European Green Deal

Armenia breaks international agreement on biodiversity over gold mine funding, alleges complaint

The complaint [1] details how the government ignored evidence in the environmental impact assessment of the Amulsar gold mine, which pointed to significant impacts on the flora and fauna at the Djermuk, Gorhajk and Sevan Lake candidate Emerald sites, a designation given by the Bern Convention to areas of outstanding natural significance.

Construction of the Amulsar gold project started in 2016 but since June 2018 has been stopped by local protestors blocking access to the mine. The project received CAD 5.8 million in equity and a CAD 10.5 million capital increase from the European Bank for Reconstruction and Development in 2009 and 2016, respectively. 

Already 70 per cent complete, the Amulsar project would excavate metal ore from open pits and extract gold with cyanide in a heap leach facility. The project has already damaged the Emerald sites by polluting the nearby Arpa River and could cause further damage to species and habitats through the pollution of waters that flow into the three candidate sites. Construction of the mine facilities has also destroyed surrounding lands and increased dust pollution.

Andrey Ralev, independent biodiversity expert and signatory to the complaint, said “The Amulsar mine is causing havoc for more than 70 protected animals, dozens of endemic plant species and the largest fresh-water body in the Caucasus, Lake Sevan. Do the ends justify the means?”

Fidanka McGrath, policy officer of CEE Bankwatch Network, said, “Destroying biodiversity now and paying to protect it later is a risky approach by the EBRD. The bank is bound by EU standards and its investments were supposed to offset the impacts on biodiversity. But in reality the harm to the Emerald network has been done, and the compensation is simply not there.”

Inga Zarafyan, president of ‘EcoLur informational NGO’, said: “The Armenian government should confirm its focus on European values, and comply with obligations adopted in the framework of international conventions.”

Notes

[1] The complaint is available at: https://bankwatch.org/wp-content/uploads/2020/03/Complaintform_en_Armenia_2020-withAnnex.pdf 

 

For more information, contact:

Andrey Ralev

Email: alibotush@gmail.com

Mobile: +359 88 426 8552

 

Fidanka McGrath

EBRD policy officer, CEE Bankwatch Network

Email: fidankab@bankwatch.org

Mobile: +359 87 730 3097

 

Inga Zarafyan

President, “EcoLur” Informational NGO

Mob. +374 91 92 12 64

Email: ecolurpressclub@gmail.com

Legal challenge mounted against subsidies for Belgrade waste incinerator

The first complaint challenges the approval by the Ministry of Mining and Energy in September 2019 of a feed-in tariff for all electricity generated by the incinerator (2). Only energy from the biodegradable fraction of waste is considered renewable under the EU’s 2009 Renewable Energy Directive, to which Serbia has committed under the Energy Community Treaty (3).

The second complaint alleges that the Serbian government breached the EU Directive on environmental impact assessment (EIA)(4) by issuing a construction permit for the incinerator in August 2019, a month and a half before the EIA was approved. This, according to the complaint, prejudiced the outcome of the EIA process and rendered the public consultation meaningless (5).

Aleksa Petković of Ne Davimo Beograd said, “Burning mixed municipal waste and diesel as an auxiliary fuel is clearly not renewable energy and must not receive subsidies. The EU is moving towards a circular economy, increasing separate waste collection and recycling. Serbia deserves a healthy and efficient system too, but it will never develop if we lock Belgrade into expensive, polluting and wasteful incineration.” 

Pippa Gallop of CEE Bankwatch Network said: “The European Commission and European Investment Bank declined to back this project because it would hinder Serbia in reaching EU circular economy targets. But other public lenders press on, including the European Bank for Reconstruction and Development, International Financial Corporation, the Marguerite II Fund and Austrian Development Bank, in blatant disregard for EU law. They need to stop digging and withdraw from the project”.

Contacts

Pippa Gallop, CEE Bankwatch Network

E-mail: pippa.gallop@bankwatch.org

Mobile: +385 99 755 9787

Skype: pippa.gallop

 

Aleksa Petković, Ne davimo Beograd

E-mail: aleksa22705@gmail.com

Mobile: +381 64 569 7566

Skype: aleksa.petkovic

Notes for editors

  1. In 2017 the Beo Clean Energy consortium, owned by Suez, Itochu and the Marguerite II Fund, signed a concession agreement with the Belgrade city authorities for a 340,000 tonne-per-year municipal waste incinerator next to the existing Vinca landfill, along with a new landfill, construction waste facility and landfill gas facility. The project is financed by the European Bank for Reconstruction and Development, the International Finance Corporation and the Austrian Development Bank (OeEB). More information about the Belgrade waste management PPP can be found here: https://bankwatch.org/project/belgrade-incinerator-public-private-partnership-ppp-belgrade-serbia
  2. Decision to award the status of temporary privileged producer of electrical energy to Beo Čista Energija d.o.o., for the EfW Vinča waste power plant, installed capacity 30.24 MW, no. 312-01-00818/2019-06, of 27.09.2019.
  3. Under Energy Community Ministerial Council Decision 2012/04/MC-EnC, Serbia committed to implement Directive 2009/28/EC on the promotion of the use of energy from renewable sources by 1 January 2014. Article 2 of the Directive defines renewable energy as follows: “(a) “energy from renewable sources” means energy from renewable non-fossil sources, namely wind, solar, aerothermal, geothermal, hydrothermal and ocean energy, hydropower, biomass, land-fill gas, sewage treatment plant gas and biogases”. It further specifies that: “(e) “biomass” means the biodegradable fraction of products, waste and residues from biological origin from agriculture (including vegetal and animal substances), forestry and related industries including fisheries and aquaculture, as well as the biodegradable fraction of industrial and municipal waste”.
  4. Directive 2014/52/EU of the European Parliament and of the Council of 16 April 2014 amending Directive 2011/92/EU.
  5. The construction permits for the incinerator, no. ROP-MSGI-3997-CPI-3/2019, and the landfill gas facility, no. ROP-MSGI-3997-CPI-4/2019, were issued on 16.08.2019, while the environmental impact assessment for the plants was approved only on 30.09.2019 (Decision no. 353-02-1302/2019-039). Article 2 of the EIA Directive requires that (our emphasis): “1. Member States shall adopt all measures necessary to ensure that, before development consent is given, projects likely to have significant effects on the environment by virtue, inter alia, of their nature, size or location are made subject to a requirement for development consent and an assessment with regard to their effects on the environment.

More details on the clash between EU recycling targets and the Belgrade incinerator can be found here: https://bankwatch.org/press_release/new-analysis-belgrade-incinerator-public-private-partnership-a-textbook-case-of-corporate-capture