Both ENDS
On July 23rd the World Bank board of directors will discuss the Bank’s safeguards review: In the coming months, the World Bank revises its social and environmental safeguards and according to Both ENDS programme officer Pieter Jansen this offers opportunities to encourage the Bank to strengthen them . This would improve the level of protection of people and the natural resources they depend on in World Bank projects. But if the Bank decides to make the safeguards more flexible instead, its investments could have more negative consequences for local populations and their habitat. Civil society organisations have repeatedly expressed their concerns, and since it’s almost the 23rd, Pieter makes a last attempt to make the World Bank aware of its responsibility: on behalf of Both ENDS he sent a letter with recommendations to Frank Heemskerk, the Dutch executive director at the World Bank. Pieter explains.
Indigenous communities in Paraguay saw their attempts to regain their ancestral lands thwarted by German investors. In Indonesia, US-based mining companies succeeded to roll back new laws that were meant to boost the country’s economic development and protect its forests. This is the level of impact that investment treaties can have on social, environmental and economic development and rights. Why? Because of the ‘Investor-to-State Dispute Settlement’ clauses that are included in many such treaties.
Almost two-thirds of the export credit insurances that Atradius DSB provided in the 2012-2018 period went to the fossil energy sector. That is contrary to the climate agreements that the Netherlands signed in Paris.
Global public support for coal is decreasing. Obama has pledged to stop American support for public financing of new coal plants outside the U.S., the World Bank has announced to phase out support for coal projects and some large private banks are withdrawing from fossil fuels. But what about export credit agencies (ECAs)? Until now, ECAs have not withdrawn from coal projects. On the contrary: while other investors gradually cease their support to coal projects, export credit agencies are investing in coal more than ever. On June 11, an alliance of 50 NGOs, including Both ENDS, published a recommendation to the OECD calling for an end to export credit support for coal.
Investment treaties must be inclusive, sustainable and fair. That means that they must not put the interests of companies before those of people and their living environment.
