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phase out fossil fuel and mining projects

Towards a phase-out of international financial institution support of fossil fuel and mining projects

To: all organizations and movements concerned with fossil fuel and mining projects

Friends and colleagues,

Friends of the Earth International is seeking your support for a campaign that aims to phase out International Financial Institution financing for fossil fuel and mining projects.

In the past several years, public financial institutions such as the Multilateral Development Banks (MDBs) and Export Credit Agencies (ECAs) have come under increasing fire for their large volume of lending in the fossil fuel and mining sectors. As concerns about climate change escalate, and as the development impacts of extractive industries become increasingly dubious, citizens around the world are questioning the role that publicly financed institutions have in perpetuating extraction-based economies and fossil fuel dependence rather than clean energy.

Acknowledging this concern, the World Bank agreed to undertake a heavily flawed process of examining its role in the fossil fuel and mining sectors. In response, Friends of the Earth International has produced a position paper calling for an immediate moratorium and eventual total phase-out of International Financial Institution (IFI) investments in these sectors. This call is directed at the World Bank, as well as the rest of the MDBs and ECAs. The Oilwatch Network has similarly called for a moratorium on investments in these sectors.

Friends of the Earth International believes it is imperative that the World Bank Group, and other IFIs, receive a strong signal from civil society around the world as the World Bank undertakes its review. As development institutions, MDBs should be pursuing investments that genuinely lead to improvements in people’s lives and in their environments. A shift away from fossil fuel and mining investments and towards socially and environmentally sustainable energy solutions is one important way of doing that.

Friends of the Earth International seeks to build a broad coalition of citizens’ groups and movements to work in solidarity to achieve such a moratorium and subsequent phase-out. If you or your organization would like to join as partners in this campaign we urge you to get in touch with us.

Please find below our call for a moratorium. To endorse this call, please contact the International Financial Institutions program of Friends of the Earth International at . The full Friends of the Earth International position paper is available at www.foei.org .

Appeal:

Towards a Phase-Out of International Financial Institution Support of Fossil Fuel and Mining Projects

We, the undersigned organizations, are calling for an immediate moratorium on, and subsequent phase-out of all financing for fossil fuel and mining projects by International Financial Institutions, including Multilateral Development Banks and Export Credit Agencies.

It is estimated that from 1995-1999, IFIs allocated around US$55 billion to projects in these sectors (not including fossil fuel thermal generating plants). This financing catalyzed even more private sector financing. Problems associated with fossil fuel and mining development include:

Environmental destruction

Fossil fuel and mining projects threaten biodiversity and destroy pristine lands. Toxic spills, oil flares, and mining waste destroy local ecosystems and harm human health. On a global level, fossil fuel projects contribute to catastrophic climate change, and worsen already increasing temperatures, rising sea levels, and volatile weather patterns.

Human rights violations

Fossil fuel and mining extraction is too often associated with repression, violations of human rights, and suppression of the rights of indigenous peoples. Projects have forcibly displaced indigenous peoples and destroyed their way of life. Authoritarian regimes use repression as a way to protect projects and their investors. These conflicts over resources, access to land, and compensation can fuel already volatile social situations and lead to armed conflict.

Dubious development impact

There is no body of statistical evidence demonstrating that fossil fuel and mining investments substantially enhance GDP for most ‘developing’ countries, or that these projects automatically deliver measurable benefits to the communities that need it most. In fact, some research shows that extraction-based economies have lower development indices than natural resource-poor countries, partly the result of corruption and rent-seeking.

For these reasons, we call on publicly financed International Financial Institutions to phase out of financing fossil fuel and mining investments. Instead they should use their scarce resources for projects that tackle the dual challenge of combating poverty and stopping catastrophic climate change.

This phase-out should cover all phases of the fossil-fuel and mining cycles: prospecting, exploration, test drilling, exploitation, as well as construction of related infrastructure such as pipelines and roads, and any financial and regulatory advice or programs by IFIs that favor such projects. While there could be some exceptions to the phase-out, these should only be determined through genuine local participatory processes, and local communities should retain the right to veto projects. This phase-out should be complemented by a phase-in of energy investments that meet the energy needs of the poor, and are based on renewable energy and energy efficiency projects that should be the standard for meeting future energy demands.

For the reasons set out above, the undersigned organizations call on International Financial Institutions (MDBs and ECAs) to agree on a moratorium for new investments in fossil fuel and mining projects. This moratorium would allow for:

The establishment of a strict ban on financing by any IFI for any new fossil fuel and minerals exploration projects in areas of high conservation value, territories of indigenous peoples’ and nations, areas where local communities oppose such projects, and areas where investments will exacerbate armed conflict. IFIs should immediately consult and work openly with civil society and governments to establish these critical no-go zones.

A detailed reevaluation of all pending projects which have an impact on the areas mentioned above, with the objective to find better alternatives for these projects or to cancel the project when no such alternatives exist

Development of concrete action plans for a complete phase-out of financing for these types of projects within five years. These plans should systematically identify policies and projects that help phase-in a positive targeted energy lending shift, to enable IFIs to target the dual goal of eradicating poverty and preventing catastrophic climate change.

IFIs must assume responsibility for any damage caused by their projects to ecosystems and to the economic and social situations of communities. It is therefore necessary to carry out a study of the impacts that energy policies and projects of IFIs have had on developing countries and the plight of specific communities. IFIs must provide resources for the compensation of damage and the physical restoration of affected areas.

IFIs must acknowledge the need to limit investments in other sectors and projects that are based on technologies with high use of fossil fuels and oil byproducts.

IFIs should respect the sovereign rights of communities to choose their own development path, based on their own priorities and preferences. Therefore, IFIs must establish participatory systems through which communities to be affected by IFI financed projects can freely establish their decisions on the project, with the capacity to modify or veto such projects.

Export Credit Agencies have been documented to finance the environmental and social destruction of local communities and to exacerbate long-term global climate change. ECAs must begin meaningful transformation towards binding environmental standards and portfolio shifts away from fossil fuels and towards renewable energy within two years, or they should be abolished.

Signed by (organizations only):

  • International Networks
    • ANPED, Northern Alliance for Sustainability
    • A SEED Europe
    • CEE Bankwatch Network
    • Fern
    • Focus on the Global South
    • Friends of the Earth International
    • Greenpeace International
    • International Rivers Network

  • Argentina
    • Amigos de la Tierra, FoE Argentina
    • Asociacion Argentina de Medicos por el Medio Ambiente
  • Armenia
    • Yanus Environmental-Legal NGO
  • Australia
    • AID/WATCH
    • Cairns and Far North Environment Centre
    • Environment Centre of the Northern Territory
    • Friends of the Earth Australia
    • Mineral Policy Institute
    • Rainforest Information Centre
  • Austria
    • Global 2000, FoE Austria
  • Azerbaijan
    • Biorhythm Scientific Center
    • Institute for social research and information
  • Bolivia
    • CEADES, Colectivo de Estudios Aplicados al Desarrollo Social
  • Bosnia and Herzegovina
    • FONDECO
  • Brazil
    • Comissão Pró-Índio de São Paulo
    • Núcleo Amigos da Terra, FoE Brazil
    • Rede de Florestas
  • Bulgaria
    • Za Zemiata
  • Cameroon
    • CED, Center for Environment and Development, FoE Cameroon
    • Global Village
  • Canada
    • Friends of the Earth Canada
    • Halifax Inititiative, Working Group on the Export Development Corporation
    • NGO Working Group on the Export Development Corporation
  • Colombia
    • CENSAT Agua Viva, FoE Colombia
    • UGAM
  • Costa Rica
    • COECOCEIBA, FoE Costa Rica
    • Mesa Nacional Campesina
  • Croatia
    • Compost Center
    • Green Action, FoE Croatia
    • KNEYA, Society for Expansion of Positive Awareness and Improvement of Living
    • LOBI, Association for Development and Local Communities
    • Osijecki Zeleni
    • ZEUS
  • Czech Republic
    • Centrum pro Dopravu a Energetiku
    • Hnuti Duha, FoE Czech Republic
  • Ecuador
    • Acción Ecológica, FoE Ecuador
    • DECOIN, Defensa y Conservacion Ecologica de Intag
  • El Salvador
    • CESTA, FoE El Salvador
  • Denmark
    • NOAH, FoE Denmark
  • Estonia
    • Eesti Roheline Liikumine, FoE Estonia
  • France
    • Agir Ici
    • Amis de la Terre, FoE France
    • Biens publics à l'échelle mondiale
    • Climate Action Network
    • Comité pour l'Annulation de la Dette du Tiers-Monde
    • France Libertés Fondation Danielle Mitterrand
    • Rassemblement pour l'Ecologie et la Solidarité
    • Réseau Foi et Justice Afrique-Europe
    • SHERPA
    • Survie
  • Finland
    • Armenia Vanadzor Helsinki Citizens' Assembly-Vanadzor office
    • Helsinki Citizens' Assembly
  • Georgia
    • Green Alternative
    • Union of Enviornment Protection and Animal Rights - LOBO
  • Germany
    • BUND, FoE Germany
    • FIAN Germany
    • GermanWatch e.V.
    • Urgewald
  • Ghana
    • Friends of the Earth Ghana
  • Hungary
    • BUDS Foundation for HUman- and Nature Protection
    • CSEMETE, Kiss Ferenc Nature Protection Association
    • Mély Mosoly Alapitvány, Deep Smile Foundation Energy Club
    • Magyar Természetvédisk Szövetsége, FoE Hungary
    • NIMFEA Nature Conservation Association
  • India
    • AIM
  • Indonesia
    • Advocation and Promotion of Empowerment for Indigenous Natural Resources
    • KALIPTRA
    • WALHI, FoE Indonesia
  • Ireland
    • Reclaim the Streets Dublin
  • Italy
    • Campagna per la Riforma della Banca Mondiale
    • Society for International Development
  • Japan
    • Chikyu No Tomo, FoE Japan
  • Kazakhstan
    • Cultural-ecological organization "Boomerang"
    • Cultural Environmental Union "Belovodye"
    • Kiwanis Club of Taraz
  • Kenya
    • Environmentalistes Sans Frontieres
  • Korea
    • Korean Federation for Environmental Movement (KFEM), FoE Korea
  • Latvia
    • Green Liberty
  • Lithuania
    • Atgaja Community, FoE Lithuania
    • Lithuanian Green Movement
  • Macedonia
    • Ecologists' Movement
  • Middle East
    • Friends of the Earth Middle East
  • Netherlands
    • ATTAC Netherlands
    • Both ENDS
    • Hivos
    • ICCO
    • Landelijk Universitair Milieuplatform
    • Milieudefensie, FoE Netherlands
    • Organisation for Latin America Activities
    • Transnational Institute
    • Wemos
    • XminY
  • Nicaragua
    • Centro Humboldt, FoE Nicaragua
  • Nigeria
    • Environmental Rights Action, FoE Nigeria
    • Ijaw Council for Human Rights
  • Norway
    • Norges Naturvernforbund, FoE Norway
  • Paraguay
    • SOBREVIVENCIA, FoE Paraguay
  • Peru
    • Indigenous Peoples' Biodiversity Network
    • Asociacion Civil Labor, FoE Peru
  • Philippines
    • KALIKASAN -People's Network for the Environment
    • Legal Rights and Natural Resources Center-Kasama sa Kalikasan
    • IBON Foundation Inc
    • Institute of Political Economy
  • Romania
    • ARIN, Romanian Association of Nature Lovers
    • Mama Terra
  • Russia
    • Agency for Research and Protection of Taiga
    • Baikal Environmental Wave
    • Buryat Regional Department on Lake Baikal, Ulan-Ude
    • Bryansk social organization for chemical safety
    • "Citizen"
    • Dauria Ecological Center
    • Eco-Pro, International Informational Legal-Environmental Agency
    • Green Don Regional ecological movement
    • Republican Human Right Centre Ulan-Ude
    • Sakhalin Environment Watch
    • South-Kamchatka nature park
    • Taiga Rangers, Inter-regional Public organization
  • Slovakia
    • CEPA, Center for Environmental Public Advocacy, FoESlovakia
  • South Africa
    • AID, Alternative Information & Development Centre
    • Green Party of South Africa
  • Spain
    • Amigos de la Tierra, FoE Spain
    • Tecnics per un Futur No Nuclear
  • Switzerland
    • Berne Declaration
    • Pro Natura, FoE Switzerland
    • Swiss Coalition of Development Organizations
  • Tajikistan
    • Youth Ecological Center
  • Tanzania
    • OCODECO
    • Lawyer's Environmental Action Team
  • Ukraine
    • Cultural Initiatives Children's organisation
    • International Socio-ecological Union, Odessa branche
    • National Ecological Centre
    • Pechenigy Environmental Group
    • Society of Geoecologists Ukraine
    • Ukrainian Society for Sustainable Development
  • United Kingdom
    • Bretton Woods Project
    • Corner House
    • Down to Earth
    • Friends of the Earth England, Wales and Northern Ireland
    • North West Trading
    • Philippine Indigenous Peoples' Links
    • Tebtebba Foundation
  • United States of America
    • American Lands Alliance
    • Animal Welfare Institute
    • Bird Enterprises
    • C.A.G.E. Citizens Against Global Exploitation
    • Center for Alternative Mining Development Policy
    • Coalition on the Environment
    • First Peoples Worldwide
    • Friends of the Earth United States
    • Global Exchange
    • Global Response
    • Greenpeace US
    • Insitute for Policy Studies
    • International Society for the Preservation of the Tropical Rainforest
    • Pacific Environment
    • PANNA Pesticide Action Network North America
    • Project Underground
    • Sierra Student Coalition
    • Sustainable Energy & Economy Network
    • Teva Learning Center
    • The Shalom Center
    • University of Hartford Progressive Student Alliance
    • University of New England Environment Group
  • Uruguay
    • REDES, FoE Uruguay

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