Stop funding fossils at the 'One Planet Summit' in Paris
Yesterday, the French President Macron, the President of the World Bank Group, Jim Yong Kim, and the Secretary-General of the United Nations, António Guterres, met with international leaders and committed citizens from around the world in Paris. According to the organisers, the aim of this gathering was to 'address the ecological emergency for our planet' as 'two years to the day after the historic Paris Agreement, it is time for concrete action.'
These are hopeful and inspiring words, but what do they really mean if on the other hand we keep providing enormous amounts of financial support to the fossil fuel sector? Despite the climate agreements that were made two years ago in Paris, and despite the fixed goals that were set internationally, financial and economic factors still seem to outweigh social, environmental and climatic factors on every level.
Push for renewables
Phasing out public support for the fossil fuel sector might be one of the strongest incentives to push renewable energy and to reach the Paris climate goal of keeping temperature rises under 1,5 degrees Celcius. Both ENDS is one of almost 200 groups and organisations which have signed an open letter, calling upon the leaders of the multilateral development banks and G20 nations that gather in Paris to stop funding fossils fuels. Also, a publication was launched showing 12 examples of fossil projects supported by these financial institutions, and the impact they have: 'Dirty dozen: how public finance drives the climate crisis through oil, gas and coal expansion.'
A step in the right direction
Although a lot of work remains to be done, some very significant steps were made at the Summit. The largest breakthrough came from the World Bank Group, which announced that it would stop financing oil, gas exploration and extraction projects from 2019. French giant insurer and the third biggest insurer in the world AXA, will divest €2,4 billion from coal and €700 million from tar sands because of climate and human rights impacts. And last but not least, the EIB decided to postpone the loan of €1.5 billion it had planned to provide to the Trans-Adriatic Pipeline (TAP). We are very pleased to see that these large financial institutions seem to finally take serious climate measures and start to move in the right direction. We urge other financial institutions such as the Dutch FMO and Atradius DSB to follow these good examples!
See also Both ENDS' background information about 'Paris Proof Export Support' and the CAN/ODI publication 'Phase-out 2020: Monitoring Europe’s fossil fuel subsidies'
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Dossier
Paris Proof Export Support
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.
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Press release / 18 November 2019
Press release: Government undermines its own climate policy with export credit insurance
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.
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Publication / 17 November 2019
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Publication / 18 June 2017
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Dossier
Gas in Mozambique
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.
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News / 28 August 2017
Politicians ask for sustainable export support
Last June, Both ENDS published a report which showed clearly that, through export credit insurance provider Atradius Dutch State Business (ADSB), the Netherlands is supporting the fossil fuel sector on a large scale. Between 2012 and 2015, ADSB provided billions of euros in insurance and guarantees, on behalf of the State of the Netherlands, to fossil-related export projects. This support is completely out of line with the Paris Climate Agreement. On 20 June, members of parliament Lammert van Raan (PvdD) and Sandra Beckerman (SP) submitted questions to the State Secretaries for Finance and for Infrastructure and the Environment.
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News / 30 June 2020
Extra export support from the government must stimulate green growth
Almost 40 civil society organisations and networks from around the world, including Both ENDS, today sent a letter to Dutch Minister for Foreign Trade and Development Cooperation Sigrid Kaag and State Secretary for Finance Hans Vijlbrief. They are asking the ministers to ensure that the expansion of export credit insurance as a result of the Corona crisis contributes to a green recovery.
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Publication / 11 November 2020
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Press release / 27 September 2017
Despite climate agreements, the Netherlands supports the fossil sector with 7.6 billion euros a year
Although outgoing economics minister Henk Kamp stated in May of this year that fossil fuels are not subsidised in the Netherlands, a report out today shows that this is clearly not the case. The report. ‘Phase-Out 2020: Monitoring Europe’s fossil fuel subsidies’, by the Overseas Development Institute (ODI) and Climate Action Network Europe (CAN-Europe), says that the Netherlands is supporting the fossil sector at home and abroad with more than 7.6 billion euros a year (1). The Netherlands made international agreements as long ago as 2009 (2) to ban subsidies for fossil fuels. Environment NGO Milieudefensie and Both ENDS – both members of CAN-Europe – call attention to these findings because they find it unacceptable that the government perpetuates our dependence on fossil fuels in this way.
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External link / 31 May 2018
High time to phase out support for fossil fuel industries (Annual Report 2017)
In 2017 Both ENDS stepped up its efforts to stop the Dutch government from supporting the fossil fuel industry. Phasing out fossil fuels is key to achieving the goals set in the Paris Climate Agreement. To Both ENDS, there is another reason: fossil fuel-related projects often have disastrous effects for the poorest people in the Global South.
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Press release / 11 November 2020
Export support for dirty energy in Africa
Since the signing of the Paris Climate Agreement, rich countries have provided almost 50 times as much export support for fossil fuel related projects as for clean energy projects in four African countries. This is the conclusion of a report written by five environmental organisations from Ghana, Nigeria, Togo and Uganda, in cooperation with Friends of the Earth Netherlands and Both ENDS. The rich countries insured energy projects with a total value of 11 billion US dollars through their export credit agencies (ECAs). More than half of this export support is related to fossil fuels. Only 1% went to sustainable renewable energy.
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Dossier
Export Credit Agencies: Who pays the price?
Both ENDS calls on the government only to provide export credit insurance to sustainable projects that cause no social and/or environmental damage in the countries where they take place.
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External link / 29 May 2019
Export credit agencies’ role in development finance (Annual Report 2018)
Export credit agencies (ECAs) play a central role within the complicated web of global development finance. In 2018, Both ENDS invested in strengthening cooperation among organisations working on ECAs, building a strategic global collaboration to stop ECAs' support of fossil fuels and improve their environment and human rights record.
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Blog / 19 September 2019
A forgotten opportunity worth 1.5 billion euros
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.
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News / 30 November 2016
Dutch Export Credit Agency did not prevent damaging practices in Suape
Atradius Dutch State Business (Atradius DSB) remains responsible for observing social, environmental and human rights, also after providing export credit insurance. That is the conclusion of the Dutch National Contact Point (NCP) for the OECD Guidelines in its final statement, which was published today. Both ENDS issued a press release about this.
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Press release / 26 March 2019
Wealthy Dutch investors to disinvest personal capital worth 200 million euros from the fossil industry
Joint press release from Both ENDS and Fossielvrij NL - 26 March 2019
A group of 22 wealthy Dutch investors have decided to disinvest all their personal capital, worth a total of 200 million euros, from the top 200 oil, gas and coal companies. The investors have pledged to disinvest all their capital from the fossil industry within three to five years. By doing so, they are giving a clear signal that they do not want their capital to contribute to disastrous climate change.
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Dossier
Suape: port expansion threatens paradise
Two projects insured by Atradius DSB in the Brazilian port of Suape have caused serious social problems and environmental damage. Both ENDS is helping the local people to obtain justice.
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Blog / 17 February 2018
Abolishing oil and gas subsidies is definitely effective
On 7 February, Dutch newspaper Trouw published an article on abolishing subsidies for fossil fuels. The article claimed that the measure would only generate a limited climate benefit. Yet the study on which the article is based shows the opposite. Niels Hazekamp (Both ENDS) and Laurie van der Burg (Overseas Development Institute, ODI) wrote a short opinion article on the issue.
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Press release / 14 May 2017
Criticism of Dutch pension fund ABP’s investments in coal, oil and gas
The Dutch pension fund, ABP, invested about two billion euros more in the fossil energy industry at the end of 2016 than the year before. This is announced by the report "Dirty & Dangerous: the fossil fuel investments of Dutch pension fund ABP," published today by Both ENDS, German urgewald and Fossielvrij NL. The report criticizes these investments because of the impact on the climate and the catastrophic consequences for the people in the areas where coal, oil and gas are being produced.
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Press release / 12 February 2019
Press Release: 6 organisations join climate lawsuit against Shell
Amsterdam, 12 February 2019 - Fossil fuel giant Royal Dutch Shell is facing legal action from environmental and human rights organisations if it fails to align its growth plans with global climate goals aimed at averting catastrophic global warming.