Both ENDS
This week the European Investment Bank (EIB), or ‘Europe’s house bank’, presented a concept policy note which outlines future policies on loans in the energy sector provided by the bank. Network organisations CEE Bankwatch and Counter Balance, both of which Both ENDS is a member, monitor policies and investments of the EIB. They find the new proposal very disappointing and have therefore sent a press release. Huub Scheele from Both ENDS, who has been working with our colleagues from CEE Bankwatch and Counter Balance for years, explains why.
Last June, President Obama called upon the national and international community to give no more public support to foreign coal. Shortly after this, the World Bank and the European Investment Bank EIB followed the example, setting stricter criteria for loans to energy companies, which will make it nuch more difficult, if not impossible for new coal plants to get financing from these banks.
Ten years after the start of the construction of the Nam Theun 2 dam in Central Laos, it is clear that this mega project has disastrous impacts on people and their environment. The project - originally the flagship of the World Bank, the Asian Development Bank (ADB) and the European Investment Bank (EIB) - did not achieve its intended development goals. In a press release which was sent out this week, Both ENDS and partner organisations call on these multilateral banks to withdraw from large scale hydro dams such as Nam Theun 2. The dam, which became operational in 2010, has profound negative effects on local communities, while they do not benefit from it.
The European Union wants to grant a EUR 300 million loan to Tunisia, under the guise of development assistance. This is a very bad idea, according to Both ENDS and other European and North-African civil society organisations.
Around 85% of the loan would immediately be used to repay the already existing debts Tunisia has to the EU Member States and the European Investment Bank (EIB). These debts have been generated by the regime of dictator Ben Ali, but the common people of Tunisia - already empoverished - will have to meet the costs.
A paper pulp factory in the Atlantic Rainforest of Brazil and a hydro power dam in the source of the Nile in Uganda, don't seem to have much in common. Nevertheless, both projects are financed by the European Investment Bank (EIB) and both have a significant impact on the environment of the poor local population.
