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Can European Parliament make ICT fair?

The breakfast was organised to raise awareness of sustainability and human rights abuses in the supply chain of information communication technology (ICT) products, as well as facilitate the discussion on the role of MEPs in promoting EU policies on human rights, European development banks and public procurement.

MEP Abir Al-Sahlani said: “Our societies have benefited greatly from globalisation. But it is important to raise awareness of human rights risks associated with the production of some of the most popular products that many of us enjoy- like smartphones. People should never be in danger when doing their jobs.”

The breakfast began with a video testimonial addressed to MEPs from Pak Kin Wan, a worker in the Labour Education and Service Network in Hong Kong, and a speech by Anna Shahnazaryan who works in Armenia and had experienced first-hand the violations to human rights.  Following this, speakers from SETEM, Bankwatch and ICLEI gave talks on the priority EU areas of action: business and human rights, European development banks and public procurement.

Make ICT Fair participant organisations presented the MEPs with a list of case studies conducted by members of the consortium, as well as a briefing document outlining the key actions MEPs can take to ensure the implementation of fair and sustainable EU policies on the priority areas.

Participants could upload photos and footage using the hashtag #MakeICTFair and #fairelectronics on social media.

For more information contact the lead project researcher Linda Scott Jakobsson at linda@swedwatch.org.

Notes

Make ICT Fair is an EU-wide project that aims to improve the lives of workers and communities affected by the production of ICT devices such as smartphones and laptops. We target EU citizens, public procurers, development banks, decision-makers, and companies to improve their purchasing practices and to align policies. The partners: SETEM Catalunya, CATAPA, ICLEI, the University of Edinburgh, Le Monde Diplomatique, People & Planet, CEE Bankwatch, Swedwatch, Electronics Watch, Towards Sustainability Association, and Südwind.

Too soon to call the “Juncker Plan” a success – new report

The full report can be found here

Brussels, Prague — The European Fund for Strategic Investments (EFSI), the cornerstone of the Juncker Plan, was jointly launched by the European Commission and the European Investment Bank (EIB) in Spring 2015 with the goal of leveraging EU budget to mobilise private capital and catalyse strategic, transformative and productive investments with high economic, environmental and societal added value. It has been hailed as a success even before a solid assessment of the plan’s achievements was completed.

Examining the performance of the EFSI’s pilot phase, the new report identifies a number of serious shortcomings that need to be addressed if its successor is to have the intended impact.

  • Sustainability: EFSI support for projects labeled ‘climate action’ (see the full list here: https://bankwatch.org/efsi-climate-action) has only moderately exceeded EIB’s standard climate action while handing out EUR 2.6 billion in guarantees to fossil fuel projects and additional guarantees worth EUR 5 billion to carbon intensive transport projects.
  • Geographic distribution: Most signed guarantees have been to projects in France, Italy and Spain.
  • Additionality:the European Court of Auditors concluded in its latest report that the amount of investment mobilised by the EFSI may have been overestimated. The report showed that EFSI’s support has replaced pre-existing financing or alternative funding sources, mainly in the fields of energy and transport. 
  • Governance, integrity and transparency: despite some progress compared to the early stages of implementation of the plan, key information about the approved projects still remains undisclosed and the EFSI Investment Committee has failed to fulfil the criteria of independence, with several cases of conflict of interest. Furthermore, support for projects under fraud investigation should be avoided.

The Juncker Plan was initially supposed to help revive the European economy in a moment of economic crisis. The EFSI’s lifetime was first extended until the end of 2020 – with its investment target increased from EUR 315 billion to at least EUR 500 – and then rebranded “InvestEU” as part of the EU post-2020 budget.

Yet, the report depicts the EFSI as a mixed bag, falling short of what would be expected from a multi-billion euro investment scheme.

Xavier Sol, Director at Counter Balance, said:

“If InvestEU is to occupy a central role in the future European Green Deal, the European Commission needs to learn lessons from its previous flagship initiative, the ‘Juncker Plan.’ There is room to exert a much more stringent control to ensure that investment plans are not just business as usual. The ‘Juncker Plan’ has at best a mixed track record, and there’s room for major improvements to get EU investments more transparent and better working for European citizens and territories”.

Anna Roggenbuck, policy officer at CEE Bankwatch Network, said:

“The EFSI’s contribution to tackling the climate crisis is still too limited. EFSI has only slightly exceeded the support to climate action projects in comparison to standard EIB’s operations. In central and eastern Europe, EFSI has failed to give any boost to climate action investments. This is not what we expected from what was supposed to be an innovative financial mechanism. The Fund has also reached the maximum geographical concentration limit with its support to France, Spain and Italy. Indeed if the size of the economy is considered other countries benefited most such as Greece, Finland, Bulgaria or Slovakia. However, these considerations bring us no closer to understanding which market failures these investments addressed in a systemic way, especially in Central and Eastern Europe. 

Contacts:

Anna Roggenbuck
Policy Officer, CEE Bankwatch Network
annar@bankwatch.org
+48-918315392
+48-509970424

Xavier Sol
Director, Counter Balance
xavier.sol@counter-balance.org
+32(0)2 893 08 61

New report: hydropower subsidies wreak environmental havoc and line influential pockets in the Western Balkans

CEE Bankwatch Network * Euronatur * RiverWatch * WWF Adria

Brussels, Radolfzell, Vienna, Prague, Zagreb 

The report is available here 

Fuelled by generous state-sponsored feed-in tariffs that contradict EU guidelines on state aid for environmental protection and energy, the number of hydropower plants under 10 megawatts in Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia and Serbia quadrupled from 108 to at least 488 between 2009 and 2018. 

Whilst the speed of development on solar and wind power projects has been glacial, in 2018 no less than 70 per cent of renewable energy incentives awarded in the region benefited small hydropower. Despite this support, small hydropower only generated 3.6 per cent of total electricity.

This boom in small hydropower has also caused public outrage across the region as rivers and streams, often in ecologically valuable and protected areas like the Stara Planina Nature Park in Serbia and Valbonë Valley National Park in Albania, have been dammed and put into derivation pipes, leaving riverbeds dry and the communities who depend on them without vital sources of water. 

The incentive schemes have lost credibility among the public by benefiting well-connected business people. For instance:

  • North Macedonia’s Deputy Prime Minister for Economic Affairs, Kocho Angjushev – owns at least 27 small hydropower plants – and the president of the main opposition party, Hristijan Mickoski also holds at least 5 concessions.
  • In Serbia, companies connected to Nikola Petrović, the best man (kum) of President Aleksandar Vučić, are among the top beneficiaries of hydropower support.
  • Montenegro’s renewables incentives system has mainly benefited people close to the President, Milo Đukanović. 

Pippa Gallop of CEE Bankwatch Network and lead author of the report, said: “It is high time to end hydropower subsidies in the Balkans. Perceptions that these schemes benefit the wealthy and fuel environmental damage endanger public acceptance of the whole transition to a sustainable and efficient energy system. Those countries which have not done so urgently need to switch to more transparent schemes based on auctions and premiums to ensure affordable and proportionate incentives,” she added.

Ulrich Eichelmann, CEO of Riverwatch, said: “The subsidies for hydro are the major driver of ecological destruction and social conflicts in the region, and worst of all, without generating a noteworthy amount of energy.  Governments need to end incentives for mature technologies such as hydropower. Only technologies which are still developing and whose costs are expected to fall further, like solar and wind, need support.” 

Petra Remeta, Conservation programs director of WWF Adria, said: “The fact is that the  Western Balkan countries have committed to apply EU subsidies rules by signing the Energy Community Treaty and Stabilisation and Association Agreements with the EU, so we call on the European Commission and the Energy Community to make sure this really happens. These rules include sustainability conditions and would help to stop subsidies for the environmental destruction of European rivers”.

Gabriel Schwaderer, Executive Director of Euronatur, said: “Existing feed-in tariff contracts for small hydropower plants need to be reviewed as they are valid for several more years. Any which granted incentives without all the legal conditions being fulfilled or for which the environmental permits have expired must be cancelled.”

Contacts

Pippa Gallop

CEE Bankwatch Network and lead author of the report

E-mail: pippa.gallop@bankwatch.org

Skype: pippa.gallop

Mob: +385 (0)99 755 9787

 

Ulrich Eichelmann

CEO, Riverwatch

Petra Remeta

Conservation programs director, WWF Adria

Anja Arning

Head of Public Relations, Euronatur

E-mail: anja.arning@euronatur.org

+49 7732 9272 13

 

Notes for editors

[1] Montenegro is phasing out renewables incentives altogether and Albania approved a law in early 2017 introducing an auction-based system for larger plants by 2020. North Macedonia has also taken steps towards an auction system, but left feed-in tariffs for hydropower intact, giving it an unfair advantage over solar and wind. The remaining countries – Serbia, Bosnia and Herzegovina and Kosovo – are yet to start with substantial changes to their renewables incentives regimes.

 

New report: Scenarios for a just transition in Jiu Valley, Romania

The alternative scenarios, prepared by the Romanian Center for Economic Policies – Cerope, focus on the development of three main economic sectors: agriculture, industry and services. The analysis shows that, if alternative development scenarios are implemented, thousands of jobs and hundreds of millions of euros can be generated in the region by 2030 – 750 jobs and 88 million euros net profits can be created over the next decade in small-scale farming and animal raising; 1520 jobs and 31 million euros in renewables and energy efficiency; and 434 jobs and 38 million euros profits in tourism and other services. 

The analysis comes at a time when the EU’s Platform for Coal Regions in Transition is paying special attention to the Jiu Valley, this year a focus region for the Platform, and when national authorities are gearing up to prepare a regional development strategy for the region in view of deploying resources from the next EU budget (2021-2027). 

“The EU Coal Platform represents a great opportunity to create jobs in the Jiu Valley, but in order for these new jobs to be sustainable and well-paid, Romanian authorities need to get seriously involved with retraining and creating the necessary infrastructure,” said Alexandru Mustata from Bankwatch Romania.

The report highlights the need for state authorities to prepare the ground for alternative development of the coal region by investing in retraining programmes for the workers, increasing connectivity of the region, strengthening the public administration, prioritising investment areas and facilitating cooperation among local actors. 

“Our ambition is to see the Romanian Ministry of European Funds use this analysis when defining the development strategy for the Jiu Valley. The report indicates clearly that the region’s most valuable resources do not lie underground. The Jiu Valley is well-suited for the development of small scale farming, renewable energy projects and tourism,” said Vlad Catuna, campaign coordinator at Greenpeace Romania. 

During the launch event of the analysis, taking place September 23 in Lupeni, one of the main mining towns in the Jiu Valley, four mayors from the region joined an earlier commitment by local leaders to work together for just transition in the Jiu Valley (a memorandum of understanding was already signed by six Jiu Valley mayors this July in Brussels). 

Read the new report by Greenpeace Romania and Bankwatch Romania

For more information, contact: 

Alexandru Mustata

Bankwatch Romania

alexandru.mustata@bankwatch.org

+4 0726 770 808

Vlad Catuna

Greenpeace Romania

vlad.catuna@greenpeace.org 

+4 0754 029 180

Reversal of subsidies for wind power in Bosnia and Herzegovina prompts legal action

Bosnia and Herzegovina is a signatory to the Energy Community Treaty (1), which prohibits “public aid which distorts or threatens to distort competition by favouring certain undertakings or certain energy resources”. (2)

While the Republika Srpska entity does not have a single wind farm in operation, in March this year, new legislation prevented feed-in tariffs or premiums for wind farms.(3)

Freedom of information requests by the Center for Environment to the Ministry of Industry, Energy and Mining and the Energy Regulatory Commission failed to uncover any evidence backing claims by the Minister for the legislative maneuvering.

The official justification for the end of the incentives was the need to reduce costs of renewable energy support for consumers. (4) In July the Republika Srpska Minister for Industry, Energy and Mining, Peter Đokić, also claimed that wind farms are now viable without incentives. (5) 

Jelena Ivanić of the Center for Environment said, “Republika Srpska’s move to cut incentives for wind farms has left small hydropower as the only renewable technology receiving significant support, in spite of its vulnerability to climate change, its small contribution to overall electricity generation (6) and the enormous damage it is causing Bosnia and Herzegovina’s communities, economy (7) and unique biodiversity. Only small amounts of solar power are being supported and now wind has been excluded, so what exactly is our energy transition going to be based on?”

Pippa Gallop of CEE Bankwatch Network said, “Bosnia and Herzegovina will need to replace its ageing coal plants in the coming years, so this measure is incomprehensible. If Republika Srpska wanted to reduce the cost of renewables support for consumers there were numerous other ways to do it than cutting all incentives for wind farms, such as switching to an auctions and premiums system, reducing the wind quota, or reducing the feed-in tariff across all technologies.”

Contacts

Jelena Ivanić, Center for Environment

jelena.ivanic@czzs.org 

Tel. +387 65 779 467

Pippa Gallop, CEE Bankwatch Network

pippa.gallop@bankwatch.org

Skype: pippa.gallop

Tel: +385 99 755 9787

Notes for editors

  1. For more information, see www.energy-community.org
  2. Article 18 of the Treaty: “1. The following shall be incompatible with the proper functioning of the Treaty, insofar as they may affect trade of Network Energy between the Contracting Parties: (….) (c) any public aid which distorts or threatens to distort competition by favouring certain undertakings or certain energy resources.”
  3. Law on Amendments to the Republika Srpska Law on Renewable Energy Sources and Efficient Cogeneration (No. 02/1-021-250/19)
  4. “The Government of Republic of Srpska approved the Law on Amendments to the Law on Renewable Sources of Energy and Efficient Cogeneration upon an urgent procedure. The reasons for amending this Law are related to the need to limit the fee for stimulating electricity from renewable sources and in the efficient cogeneration which final consumers of electricity are paying. The reasons for adoption of the Law on Amendments to the Law on Renewable Energy Sources and Efficient Cogeneration by Urgent Procedure are related to the need that certain energy producers from renewable sources (wind farms) are excluded from the system of incentives which will limit the growth of electricity bills on this account which would be significant in the following period. For example by exercising the right to incentive for a wind power plant with a 50 MW installed capacity at least 16 million BAM a year needs to be provided. Urgent parliamentary procedure was necessary because some wind farms that are under construction might claim and reserve this right in accordance with the valid law.” Source: http://www.vladars.net/eng/vlada/ic/ns/Pages/The-10th-Government-session-held–.aspx
  5. Vladimir Spasić: Republika Srpska to adopt new renewables incentive schemes by end-2019, Balkan Green Energy News, 4 July 2019.
  6. In 2018, small hydropower plants contributed only 2.6 per cent of electricity generated in BIH according to the State Energy Regulatory Commission (DERK) 2018 Annual Report, December 2018.
  7. Center for Environment: Small hydropower plants cause Bosnia-Herzegovina more than EUR 2 million in losses annually, 30.11.2019

Setting precedent, EU bank to drop all fossil fuels funding beyond 2020

Prague, Brussels – The European Investment Bank, the house bank of the EU, is proposing to end financing for all fossil fuels beyond 2020, becoming the first multilateral financial institution to make such a commitment in line with the Paris Agreement. 

A draft of its Energy Lending Policy, dated 24 July 2019, commits the bank to “phase out the financing of investment in energy infrastructure directly associated with fossil fuels… [and] no longer originate projects after the adoption of this policy and will stop lending to fossil-fuel energy projects by the end of 2020.”

The draft also proposes to exclude fossil fuels funding across other EU policy frameworks, including the Modernisation Fund for Europe’s less developed regions. In addition, the draft proposes to set up an Energy Transition Package that could be a key source of financing and technical advice on energy infrastructure in some of the EU’s most carbon-intensive regions. Such a move could stimulate a just transition.

Petr Hlobil, campaigns director with CEE Bankwatch Network, said, “This draft shows commendable leadership from the EIB in becoming the first among public banks to commit to a total phase out of investments in fossil fuels after 2020.

The EIB recognises the need to transform the energy sector in central and eastern Europe and aid this transition by investing in zero-carbon technologies and energy efficiency and putting in place an Energy Transition Package. 

We expect incoming Commission President Von der Leyen to honour these commitments in front of the European Parliament and ensure that her cabinet, especially those in Energy and Climate Action, are fully behind this strategy. The Commission must take a similar approach by allocating additional funding from the EU budget after 2020 that is currently under negotiation.” 

For more information 

Petr Hlobil, campaigns director

CEE Bankwatch Network

Email: phlobil@bankwatch.org

Mobile: +420 603 154 349