by Lauren Bollinger
The World Bank has been incentivizing fossil fuel dependence across the developing world, despite commitments to cut funding in such sectors, charges a January 2017 report by the advocacy group Bank Information Center (BIC). The report, which examines the Bank’s support of coal, gas, and oil projects in Peru, Indonesia, Egypt, and Mozambique, points out a contradiction between its pronouncements on climate change and its lending activities. The Bank has notably promised to work towards reducing subsidies for fossil fuels while incentivising investments in renewable energy. Most notably, in 2013, the Bank vowed to end virtually all support for the creation of coal-burning power plants, supporting them only in “rare circumstances” where there are no viable alternatives. Nonetheless, the BIC argues the World Bank has knowingly funded national policies to subsidize such fossil fuel industries.
The BIC’s report comes after similar reports in October of last year by several US and Europe-based advocacy groups, on World Bank-backed coal projects throughout developing countries in Asia, from Bangladesh to the Philippines. In the Philippines, where the Bank has funded at least 20 new coal projects since 2013, such projects have drawn widespread criticism from human rights and indigenous advocacy groups, as the country’s coal industry has resulted in an estimated thousand premature deaths annually and the displacement of thousands of indigenous peoples.
International finance institutions like the World Bank, which facilitate the loaning of millions of dollars to developing nations annually, carry immense political and economic clout in the developing world.
“World Bank accused of incentivizing investments in fossil fuels through $5B policy loans portfolio.”
“World Bank accused of funding Asia ‘coal power boom’”