FMO takes a step towards divesting from fossil fuels
The Dutch development bank FMO has published a statement about fossil fuels to take steps in climate action. Both ENDS and partners are pleased that FMO is finally taking a stand regarding fossil fuels, but in our opinion it could be more ambitious. In order to really contribute to sustainability and equality, it is essential that development banks stop investing in harmful fossil projects.
FMO's sustainability policy consists of various position statements. The statement about fossil fuels is now open for consultation. Both ENDS considers it important that FMO issues a strong statement to show how the Netherlands is taking up a leading role in the phasing out of fossil fuels. With this statement, FMO could go further than just excluding most fossil projects, and publish her vision on the role development banks can play in a just energy transition.
Gas is also a fossil fuel
As far as Both ENDS and partners are concerned, FMO is not ambitious enough in its statement when it comes to phasing out investments in fossil fuels.
For example, FMO does not explain clearly enough why they see gas as a transition fuel, in which (very exceptional) cases FMO is considering investments in gas, and how FMO defines that there are no alternatives. In the end, gas is also a fossil fuel.
Financial Intermediaries
FMO spends part of its budget through so-called Financial Intermediaries: banks and other financial institutions that then use that budget for investments. FMO excludes investments through these intermediaries from the new fossil fuel policy, so that FMO's budget - for the biggest part Dutch taxpayers' money - can still be spent on fossil fuel projects, such as oil pipelines or coal-fired power stations.
In addition, we would like to see FMO commit to the Paris Climate Agreement in the statement, and design a clear timeline and monitoring system of its own policy, so that the bank can be held accountable for achieving its goals.
More resources for bottom-up projects
Stopping fossil fuel projects would not only be good for the climate and the environment, but also make more resources available for bottom-up and off-grid energy projects in which communities have a say. In this way, the money from FMO actually improves the living conditions of the people who need it most.
Strengthening FMO's fossil policy
Our input on the statement is a response to a consultation with FMO. It is common for development banks to share their amended or new policies in draft version so that external stakeholders, including civil society, can provide input.
Both ENDS completed the consultation together with other organizations from our network. We also encouraged our partners to provide their own input. We will now continue discussions with FMO to further improve their fossil fuel statement, which is already a first step in the right direction.
For more information
Read more about this subject
-
Dossier
Advocating for responsible policies of development banks
Development banks should comply with strict environmental and human rights rules to ensure that their projects benefit and do not harm the poorest groups. Both ENDS monitors the banks to make sure they do.
-
News / 18 November 2019
European Investment Bank goes fossilfree
Good news for the climate: last week, the European Investment Bank (EIB) decided to stop investing in fossil fuels by 2021. This is part of its new energy strategy.
-
News / 30 July 2019
EIB wants to stop fossil investments: big step in the right direction
The European Investment Bank (EIB) has published its new policy for energy investments. In the new draft policy, the bank states to stop investing in fossil fuel related projects from 2020. This is good news for the climate, so Both ENDS and partners are happy with this draft policy. The shareholders of the bank, the member states of the European Union, still have to approve it.
-
Publication / 25 December 2015
-
Press release / 10 February 2021
Transparency at development bank FMO is seriously lacking
The Dutch development bank FMO is not sufficiently transparent about the projects it finances and is therefore acting contrary to its mandate. This is evident from a new report published by the International Accountability Project (IAP) and the Foundation for the Development of Sustainable Policies (FUNDEPS), endorsed by 28 organizations including Both ENDS, SOMO, and Oxfam Novib. The research assesses FMO's disclosure and access to information practices for investments proposed between January 1, 2019, and May 31, 2020. Only in 25% of the cases was it disclosed what potential negative consequences an investment by FMO would have for people and the environment.
-
News / 8 November 2019
European Commission, help the European Investment Bank go Fossil Free!
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.
-
Blog / 24 June 2019
The European Investment Bank should withdraw from gas investments
The European Investment Bank EIB should get rid of its gas-investments, and the Netherlands can take the lead in this. The Netherlands appears to be relying less and less on gas in its energy policy, and also seems to focus on gas-free investments at the EIB. Now it is important to maintain this position and also convince the other EU countries.
-
News / 1 December 2018
7 suspects of the murder of the Honduran Berta Cáceres were found guilty
On Thursday, November 29, seven suspects of the murder of Berta Cáceres (in March 2016) were found guilty. Members of the indigenous human rights organisation COPINH, of which Cáceres was the leader, and close relatives of Cáceres herself see the ruling as the first step towards justice for her murder and the recognition that the company DESA is co-responsible for this. They also point out, however, that the process was permeated with corruption, intimidation and other abuses from the very beginning, and that the masterminds behind the murder are still walking around freely.
-
News / 4 October 2017
Reaction to FMOs position statements on human rights, land and gender
On September 20th FMO published its new position statements on human rights, land governance and gender. We appreciate that FMO takes human rights serious and applaud the efforts that have been made to come to an improved position on human rights, land and gender. However, to truly have a positive impact on people and the environment, some important follow up steps are necessary.
-
Publication / 11 February 2016
-
Video / 18 March 2015
Money Energy People
Senegal is one of the countries with the highest amount of effective sunshine on earth. Instead of using the 3000 hours of sunshine a year as a source of energy, 2 new coal fired power plants are now being built with the help of the Dutch development bank FMO, using public money. This video shows the consequences for the local population.
-
News / 23 May 2018
African civil society urges AfDB to support sustainable, inclusive and people-centred development
This week, the African Development Bank (AfDB) holds its 2018 Annual Meetings. A large group of African civil society organisations calls on the bank to ensure social and environmental protection, to involve civil society, to pay attention to gender issues and to make sustainable choices in their energy access ambitions.
-
News / 11 May 2017
African Development Bank accepts complaint about coal plant
A year ago, the Senegalese NGO Takkom Jerry filed a complaint with the African Development Bank (AfDB) and the Dutch Development Bank FMO, with support from Both ENDS. These banks finance the Sendou coal power station, right next to the fishing village of Bargny. The AfDB has now recognized the complaint. FMO is already processing the complaint and will publish an official response shortly.
-
Blog / 13 November 2018
The "Dutch hero" came to develop "poor Africa"
Last weekend there was an article in Dutch newspaper De Volkskrant about the Lake Turkana Wind Power Project in Kenya. I was surprised and angry about how the story was presented. How can people be so blind to the perspectives of others? And how can a progressive paper like De Volkskrant devote so much space to such an unnuanced account? This is exactly why such projects lead to conflicts.
-
News / 17 May 2018
Charge against Dutch FMO for complicity in human rights violations in Honduras
Today, three representatives of the Honduran indigenous people's organisation COPINH, together with the family of environmental activist Berta Cáceres, who was murdered in March 2016, announced that they are preparing to press charges against the Dutch development bank FMO. COPINH accuses the FMO of complicity in human rights violations in connection with the controversial Agua Zarca hydroelectric project.
-
External link / 31 May 2018
Agua Zarca debacle leads to policy changes at FMO (Annual Report 2017)
Sometimes things must go terribly wrong before big players start to move. In March 2016, Honduran activist Berta Cáceres was murdered because of her leading role in the protests against the Agua Zarca hydro dam, co-financed by the Dutch FMO. One and a half year later, FMO changed their policies to prevent such events in the future.
-
Publication / 10 December 2018
-
Dossier
Fair Green and Global Alliance (FGG)
Together with civil society organisations from all over the world, the Fair Green and Global (FGG) Alliance aims for socially just, inclusive and environmentally sustainable societies in the Netherlands and the Global South.
-
Blog / 12 July 2019
Dutch participation in the AIIB, an international bank with Chinese characteristics
and Stijn Deklerck of Amnesty International Nederland
On 12 and 13 July, the Asian Infrastructure and Investment Bank (AIIB) will be holding its annual meeting in Luxembourg. This is the fourth annual meeting of the AIIB which was set up on the initiative of China. As a shareholder, the Netherlands will be attending the meeting.
-
External link / 10 December 2018
Human Rights Defenders are a Cornerstone of Sustainable Development
An Open Letter to States and Development Financiers on the need to ensure that development interventions support the realization of human rights, safeguard human rights defenders and guarantee meaningful public participation