Still Funding Fossils: World Bank Group Energy Finance FY2014
Oil Change International
Despite repeated calls for urgent action on climate change, the World Bank Group increased funding for fossil fuels in its last fiscal year. The World Bank’s increase in fossil fuel finance is especially disappointing as 2014 was the first full fiscal year following the World Bank’s commitment to limit coal financing due to climate concerns.
The main findings of the review include:
- The World Bank Group increased its support for oil, gas, and coal in FY 2014 over previous years.
- Financing for fossil fuel exploration continued at significant levels, in spite of the fact that this lending supports the expansion of projects that threaten the climate.
- WBG financing still went to coal, despite the pledge to end finance for coal power plants except in extreme circumstances.
- Financing for energy access increased somewhat over previous years, with 13 percent of energy financing in FY 2014 going to projects that target increased energy access for the poor.
- Fossil fuels and large hydropower accounted for only 4 percent of energy access financing, showing again that investing in large, conventional energy projects is not an effective way to increase energy access.
The World Bank’s energy finance practices continue to fall far short of the Bank’s core missions of reducing poverty and tackling climate change. The World Bank must restructure its energy portfolio to end all coal support, stop financing the search for unburnable carbon, and prioritize clean renewable energy and energy access.
Platts announced Aug 25 2015 that,
“The World Bank and the Ugandan government have signed an agreement on a $145-million loan to support a range of infrastructure projects in the oil-rich Lake Albert Rift Basin as the country nears commercial crude production”
In a period of oil production overcapacity the US led World Bank is going to facilitate the exploitation/destruction of vulnerable habitat for the benefit of CNOOC, TOTAL and TULLOW. Please see the moving film VIRUNGA and note that VIRUNGA NATIONAL PARK, home to countless endangered species including the last Mountain Gorrilla is within 100mi of the Lake Albert devlopement. Not to mention the CO2. Criminal. Time for new leadership at the bank!
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