Public development banks failing 2 degree test, heavy fossil fuel financing persists
Bankwatch Mail | 17 December 2015
The MDB Climate Change Scorecard, published by Bank Information Center and Sierra Club during COP21, highlights how none of the world’s biggest multi-lateral development banks is on track to help keep the world below 2 degrees warming, and reveals how the seven banks in question – including the World Bank, the EIB and the EBRD – are continuing to support fossil fuel projects in developing countries.
This article is from Issue 63 of our quarterly newsletter Bankwatch Mail
The scorecard assessed the recent record of the MDBs in meeting their stated commitments to help poor countries transition to a low-carbon economy, to avoid or reduce project-related greenhouse gas emissions and to increase support to renewable forms of energy.
The IFC, the World Bank’s private lending arm, and the EIB were identified by the scorecard as the ‘most enthusiastic’ fossil fuel promoters – taking account of both banks’ direct and indirect lending – while the Asian Development Bank was identified as the biggest funder of coal. Bank Information Center’s Nezir Sinani pointed out, “These banks fail the climate test because they are neither measuring nor trying to curtail their support for fossil fuels. This support often remains hidden behind incentives, guarantees or in complex investment structures like public private partnerships or lending through third parties. This is an unacceptable use of public funds, which should be promoting a greener, cleaner world.”