World Bank, climate change and climate finance Civil society event at the World Bank spring meetings 2010, 22 April
Minutes||23 April 2010|
Sunita Dubey, groundWorks
The World Bank has just approved a $3.75 billion loan to finance one of the largest coal power plants built in South Africa. It’s going to benefit big industrial companies, not poor communities. In discussions with the Bank they would always say that coal is the cheapest and most viable option. Yet the Medupi power station will be built in a highly water stressed area, there will be consequences for rural farmland.
There will also be a cumulative impact because the power plant will be built very near to another already existing plant. While there were people on the streets every day protesting against the power plant, in DC the Bank was arguing that the power plant was in the interests of poor communities.
Ama Marston, Bretton Woods Project
The World Bank trying to get a central role in climate finance. As per a Bank leaked document after Copenhagen the Bank: It was confident that it would receive the large part of the fast start finance. It talked about an outreach campaign to governments to convince them that the Bank is a good channel for climate finance. It also expressed the intention to support the development of the carbon market.
The climate investment funds (CIFs) – preliminary lessons:
There are two different messages coming from the Bank and donors regarding the CIFs. Donors like to stress that the Bank is just a channel for donor funds. Whereas the Bank is using the CIFs to present itself as active on mitigation and adaptation. The Bank is also counting the renewable investments made by the CIFs towards its overall lending.
Korinna Horta, Urgewald
REDD has been widened to countries that don’t have high deforestation rates but want to protect and enhance their forests. REDD as an opportunity: It has opened space to discuss things such as land tenure, governance of forests etc. However there are also dangerous risks towards indigenous peoples being turned off their land, of elites capturing the benefits of the carbon trade.
FCPF components: the Readiness Fund, the Carbon Fund. FCPF has committed to stakeholder participation but the Bank has actually rejected free prior and informed consent and in place has signed up to free prior and informed consultation. Learning by doing is the World Bank approach - but this has failed many times before. The 2007 review of the Banks 2002 forestry strategy concluded that the Bank’s approach to large scale intervention has not worked well for forests.
Karen Orenstein, Friends of the Earth
The Copenhagen Accord pledged $30 billion of fast start finance from 2010-2012 and a goal of $100 billion per year of public and private finance.
What about other funds?
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Published: 23 April 2010 , last edited: 23 April 2010
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