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TITLE: Leaked World Bank Memo Says Oil, Gas, and Mining Investments Pose "Clear and Present Danger" |
AUTHOR: Daphne Wysham |
ORG: Institute for Policy Studies |
DATE: April 27, 2001 |
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The $2 billion dollars per year the World Bank Group has invested in oil, gas, and mining projects in poor and developing countries presents a ìclear and present dangerî to the global environment, according to an internal Bank memo obtained by the Institute for Policy Studies (IPS) and released today. The World Bank memo comes amid growing criticisms that Bank-financed oil, gas, and mining projects are harming the environment and causing a host of social problems in poor nations. The complaints from affected communities and environmental and human rights advocates around the world prompted the Bank to announce recently it will launch a full review of its extractive resource investments. The internal memo, which was prepared for staff of the World Bankís private sector lending arm, the International Finance Corporation (IFC), ranked oil, gas, mining, and non-renewable power projects at the top of a list of risky projects. Reasons given for this ranking included ìglobal concern over inherent sustainability of extractive industries,î and ìcompelling evidence of accelerating global warmingóanticipated international clamor for action on GHGs [greenhouse gases].î Greenhouse gases such as carbon dioxide (CO2) are produced when oil, gas and coal are mined and burned and are the main cause of climate change. We welcome the recognition of the ëclear and present dangerí posed to people and the environment wherever the World Bank has backed massive oil, gas, and mining projects,î said Daphne Wysham of IPS. ìThis memo shows the World Bank understands such investments contradict its mandate of sustainable development and poverty alleviation. Another internal Bank document obtained by IPS outlines the profitability of the oil, gas and mining sector for the World Bank. That memo stated, ìBy sector, Oil, Gas and Mining had by far the highest equity return after specific provisions (26.6%). The question now is whether the World Bank will heed its own warnings and reach the only logical conclusion: a full phase-out of oil, gas, and mining projects,î said Wysham, "or continue to pursue such projects at the expense of the public and the worldís poorest. Oil, Gas, And Mining Since the Climate Convention was signed in 1992, the World Bank roup has invested $15.7 billion in oil, gas, coal, and fossil uel-power projects around the world, and only $1 billion in enewable energy and energy efficiency. Among their current nvestments is a pipeline from Chad to Cameroon, approved in 000, projected to contribute 446.4 million metric tons of GHGs nto the atmosphere. The Bank is also heavily involved in inancing oil and gas in the Caspian Sea region. Several projects it has helped finance in Azerbaijan and Kazakhstan will eventually release 17 billion metric tons of CO2 into the atmosphere ñ this is equivalent to more than one half of all global annual emissions. In addition to the threat of climate change, the harmful impacts of fossil fuel investments to the worldís poorest are clear: . The poor are the most likely to be forced off of their land and made homeless by oil, gas, and mining projects. They are the most likely to live in polluted surroundings and the least empowered to demand fair compensation or a share in the revenue from oil, gas and mining development. . There is an alarming record of human rights abuses by governments and corporations associated with fossil fuel operations, resulting in forced relocation, and the brutal and sometimes deadly suppression of critics. Citizens in Chad and Cameroon voiced loud concerns to the World Bank that the financing and revenues for the Chad-Cameroon oil project would fuel an ongoing civil war and intimidation of citizens in affected communities ñ fears that seemed justified when it was revealed that the President of Chad spent millions of dollars of project funds on weapons. . Oil and gas exploration, mining and new roads (which are often an indirect result of oil, gas and mining exploration) currently threaten frontier forests in critical hotspot countries around the world, including the Russian Far East, South America and West Africa. Coal mining in eastern India threatens to destroy the last remaining habitat for the endangered tiger. . Spills, gas flaring, improper disposal of waste, and mining accidents result in toxic releases that can be dangerous and even deadly to humans, and can poison groundwater, farmland, livestock and marine resources, the very resources on which the poor depend. Contact: Daphne Wysham, Institute for Policy Studies202-234-9382, extension 208 Institute for Policy Studies, Sustainable Energy & Economy Network, 733-15th St., NW, Suite 1020, Washington, DC 20005, Phone: 202-234-9382, x 208 Fax: 202-387-7915 END |