Letter: Extra export support from the government must stimulate green growth

Export support – and especially that to fossil projects – has been in the spotlights quite often recently. This is a positive development, because the Netherlands alone provides fossil export support worth 1.5 billion euros per year. At the climate summit in Glasgow, the United Kingdom launched a statement promising to stop providing export support to fossil projects by the end of 2022. After having denied at first, the Netherlands decided to join the statement after all – ​​which now has already been signed by nearly forty countries and financial institutions.

Julio Bichehe Erneste of Farmers Union Cabo Delgado Mozambique (UPC) on a side event of COP26 in Glasgow, speaking about the negative impacts of export support for fossil fuel projects for local people and their enrironment, and about the need to support renewable energy projects instead.

Today, the Netherlands announced that it will join a leading group of countries, including the United States, Canada and Italy, which declared that they would stop international support for fossil energy projects. At the day of the launch of the declaration at the climate summit in Glasgow on the 4th of November, the Netherlands had no intention of joining, but because of pressure from civil society and political parties, the responsible ministries decided to sign after all. Both ENDS, together with organizations at home and abroad, has been pushing for this for years, and we are very happy with this step. We will of course continue to monitor developments.

On Friday October 22nd, six staff members of our partner organisation Africa Institute of Energy Governance (AFIEGO), including its director Dickens Kamugisha, were arrested in Kampala, Uganda. AFIEGO is one of four Ugandan organisations involved in several legal cases against the oil project, including the one against TotalEnergies in France and in the East African Court of Justice.

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.

New website shines a light on the extent of export credit agencies' support for fossil fuels

Each year governments provide tens of billions of dollars in financial support to fossil fuel projects via export credit agencies (ECAs). Today, 18 civil society groups from 14 countries are launching a new website to shine a spotlight on how ECAs are undermining global climate goals. In advance of the November UN climate conference, the organisations are calling on governments around the world to end public financial support for coal, oil and gas projects, including support from ECAs. Ending this support and redirecting financial resources to sustainable alternatives is essential for a just energy transition.

The government provides an average of 1.5 billion euros a year in export support for fossil projects by Dutch companies, in the form of insurance and guarantees. The climate crisis requires that the Netherlands and other countries stop providing export support for fossil energy projects, whether it be coal, oil or gas, before the end of this year.

At the beginning of this year, the Dutch government provided Dutch companies with export insurance worth 903 million euros to enable them to participate in a gigantic natural gas project in the north of Mozambique. Together with partners from Mozambique and the Netherlands, Both ENDS has been conducting a dialogue with export credit agency Atradius DSB and the responsible Ministries of Finance and Foreign Affairs on the possible financial, environmental and social risks of the gas project.

Civil society organisations send urgent letter on climate to financial sector

Amsterdam, 8 July 2021 – The Shell ruling has consequences for the financiers of major climate polluters. That is the message in a letter from a number of civil society organisations, including Oxfam Novib, Eerlijke Geldwijzer, Milieudefensie, Greenpeace and Both ENDS, to the biggest banks, pension funds and insurance companies in the Netherlands. In the letter, they call on the financial institutions to reduce CO2 emissions from loans and investments in line with the 1.5 degrees goal laid down in the Paris climate agreement.

"Historical verdict", "unique decision", "landslide victory". Superlatives flew to our ears in the media yesterday, when it became clear that the judge ruled that Royal Dutch Shell must reduce its CO2 emissions by 45% by the year 2030. For the plaintiffs, including Both ENDS, the verdict is very hopeful, as it was for many co-plaintiffs and citizens interested in this court case.

The Hague, 26 May 2021 - For the first time in history, a judge has held a corporation liable for causing dangerous climate change. Today, as a result of legal action brought by Friends of the Earth Netherlands (Milieudefensie) together with 17,000 co-plaintiffs and six other organisations (ActionAid Netherlands, Both ENDS, Fossil Free Netherlands, Greenpeace Netherlands, Young Friends of The Earth Netherlands and the Wadden Sea Association) the court in The Hague ruled that Shell must reduce its CO2 emissions by 45% within 10 years. This historic verdict has enormous consequences for Shell and other big polluters globally.

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.

Today, two independent experts brought out a legal opinion on the obligations of countries and their export credit agencies under international law in relation to export support for fossil fuels. According to the report, emissions by fossil fuels and the related infrastructure need to be reduced urgently.

On Wednesday, April 14, seven countries, including the Netherlands, launched an initiative called Export Finance for Future (E3F), in which they set a number of ambitions with regard to phasing out export support for the fossil sector. Many NGOs worldwide, including Both ENDS in the Netherlands, have been calling for such an initiative in recent years and we are therefore pleased with this step. However, to achieve results and contribute to the Paris climate goals, countries will have to commit to much more ambitious goals than those now set. Concerned civil society organizations, including Both ENDS, therefore prepared a statement detailing the weaknesses they felt in the policy proposed by E3F, supplemented with recommendations for improvements.

Both ENDS is shocked by the dramatic news in the past days coming from Palma, Cabo Delgado, Mozambique. Our thoughts go to those who lost their lives or who are still missing, and their loved ones. Both ENDS is in close contact with our local partners to support them wherever we can. Many people are still missing, among whom members of farmers union UPC.

Next week, the climate case brought against Royal Dutch Shell by Dutch environmental organisation Milieudefensie is due to start. Milieudefensie hopes to force the company to stop causing dangerous climate change and adopt a more sustainable course. Six Dutch organisations have decided to become co-plaintiffs in the case. They include ActionAid and Both ENDS, organisations that work outside the Netherlands on human rights, gender equality, environment and sustainable development. Though, at first glance, the case may not seem relevant to them, nothing is farther from the truth, as Nils Mollema of ActionAid and Niels Hazekamp of Both ENDS explain.