Both ENDS
Many countries heavily support fossil fuel investments abroad through their export credit agency (ECA). This contributes to carbon lock- in, whereby companies or even countries commit themselves to a certain amount of greenhouse gas emissions for the lifetime of the infrastructure — oftentimes years or even decades. This seriously delays the transition to renewable energy sources, and is certainly not in line with Art. 2.1c of the Paris Agreement.
Highlighting the impacts caused by export finance in the global South, this side event will provide concrete recommendations to decarbonize export credit agencies.
Elections are soon to be held in the Netherlands. The political parties are sharpening their knives and have outlined their plans in hefty manifestos. Not surprisingly, they mainly focus on domestic issues. International themes are primarily addressed in terms of opportunities for Dutch companies and threats in areas like health, privacy and competition that we need to protect ourselves against. But if we want to make the Netherlands sustainable, we especially need to look at our footprint beyond our own borders and make every effort to reduce it. In the weeks leading up to the elections, Both ENDS looks at where the parties' manifestos offer opportunities to achieve that.
The Dutch export credit agency Atradius DSB is not aligned with the Paris Climate Agreement; on behalf of the Dutch State, it continues to strongly support investments in fossil fuels. This is the conclusion of a report by German research agency Perspectives Climate Research (PCR), in which the export credit agencies of the Netherlands and Japan are measured in terms of their climate ambitions and alignment with the Paris Agreement.
Today, 122 civil society groups are releasing letters to eleven government signatories to the Glasgow Statement on International Public Support for the Clean Energy Transition, laying out the actions they must take as soon as possible to meet their commitment. In this joint statement at COP26, 35 countries and 5 public finance institutions committed to end their international public finance for 'unabated' fossil fuels by the end of 2022, and instead prioritise their "support fully towards the clean energy transition."
At the end of November, the organisations WALHI South Sulawesi (part of Friends of the Earth) and Both ENDS filed a formal complaint with the Dutch export credit agency Atradius DSB. Despite the warnings from local communities for the negative consequences of a land reclamation project in the bay of Makassar, Atradius DSB advised the Dutch government to provide dredging company Boskalis with insurance for the execution of the project. The consequences for the fish stock, the beach and the lives of thousands of small-scale fishing communities are severe. Atradius DSB has not sufficiently investigated these harmful consequences beforehand.
Dutch pension money is invested heavily in companies that contribute to deforestation in the Amazon region and the Cerrado savanna in Brazil, such as soy, animal feed and beef companies. This is concluded in a report published today by Profundo, commisioned by the Fair Finance Guide, Hivos and Both ENDS. All ten pension funds that were examined invest in these types of companies, with the ABP pension fund and Pensioenfonds Zorg en Welzijn on top with investments worth EUR 580 million and EUR 383 million respectively.
Amsterdam, 19 May 2021 – On 25 March, a day after violent attacks in northern Mozambique, the Dutch state decided to provide dredging company Van Oord with export credit insurance worth 900 million euros for its activities in the country. The company is conducting dredging operations for a highly controversial gas project that, according to Mozambican interest groups, is playing a prominent role in the escalating violence in the region. Civil society organisations Both ENDS, Milieudefensie and Oil Change International and their Mozambican partners are alarmed about the situation and have called the Dutch government and Dutch export credit agency Atradius DSB to account.
