Amsterdam, Copenhagen 22 June 2020 – In these times of increasing climate crisis, corporate social responsibility also means that investments in fossil gas must be phased out as quickly as possible. In a world in which a maximum temperature rise of 1.5 Celsius is the norm, fossil gas cannot be a 'transition fuel' towards sustainable energy. This is the message from five European environmental organisations (Both ENDS, the Danish AnsvarligFremtid, Fossil Free Sweden, Fossil Free Berlin and the Italian Re:Common) to pension funds in their countries that still invest in fossil gas companies. They are promoting that message with a new campaign called "Gas Free Pensions", which is being launched today.
The Netherlands provides export credit insurances and guarantees worth 1.5 billion euros annually to Dutch companies active in the oil and gas sector abroad. This support amounts to one and a half times the annual amount that the Cabinet of Prime Minister Rutte mobilises for climate initiatives worldwide. The intended effects of Dutch international climate policy are more than offset by this fossil export support. That is the conclusion of a new report from Both ENDS which is published today.
Almost two-thirds of the export credit insurances that Atradius DSB provided in the 2012-2018 period went to the fossil energy sector. That is contrary to the climate agreements that the Netherlands signed in Paris.
Last June, after months of negotiations in five different 'climate roundtables', the Dutch government presented its Climate Agreement . Negotiations had taken place in a roundtable for 'industry', for 'built environment', for 'electricity', 'mobility' and for 'agriculture and land use'. Climate measures that the Netherlands can take within its borders are pretty much covered by these climate roundtables. But the Netherlands also has a huge climate footprint outside its borders. It seems we have forgotten about the 'International' Climate Roundtable.
In 2011 one of the world’s largest gas reserves was found in the coastal province of Cabo Delgado, in the north of Mozambique. A total of 35 billion dollars has been invested to extract the gas. Dozens of multinationals and financiers are involved in these rapid developments. It is very difficult for the people living in Cabo Delgado to exert influence on the plans and activities, while they experience the negative consequences. With the arrival of these companies, they are losing their land.
Reward high-risk international business projects investing in a green future and stop support for the international fossil industry
The climate is 'hot'. Everyone is talking about it. 'Everyone needs to do something' calls the government in its recently started public campaign. Good plan. Let's really do something. For a start, we can stop supporting international trade in fossil energy by our own multinationals. That would free up 1.5 billion euros which we could use to combat climate change on an international scale and at the same time give our own innovative businesses a boost. Today's Vergeten Klimaattafel (Forgotten Climate Roundtable) will discuss the opportunities for the Netherlands to have a real impact. And those opportunities are enormous. Because our big money and our influence lie beyond our borders.
Every 10 years, the mandate and activities of 'Export Development Canada' (EDC), the Canadian export credit agency, are reviewed. Since the last review took place in 2008, another review is currently underway. Both ENDS and a couple of other CSOs working from a number of countries made a joint submission as formal input to the legislative review. We did this especially in light of the Canadian governments' ambition to show leadership on climate change and to prioritise climate change action and clean economic growth.
On Thursday November 7th, a group of European NGO's including Both ENDS, sent a letter to Vice-President of the EU Frans Timmermans, in which they ask him to support the phase out of European Investment Bank’s fossil fuel financing by the end of 2020.