Archived press release

'No role' for World Bank in managing climate funds - Friends of the Earth

10 June 2010

Responding to demands for World Bank management of climate funds for developing countries at the UN climate change talks in Bonn, Friends of the Earth's senior international climate campaigner Asad Rehman said:

 "Rich countries must compensate developing countries financially for the damage that climate change is already causing - but doing this through the World Bank is not the answer.

"The World Bank has lent money to dirty fossil fuel projects again and again - so putting it in charge of climate funding is like giving an alcoholic the keys to a wine cellar.

"This money should instead be managed fairly under the UN climate convention - a position supported by the majority of developing countries, who, after all, will be the ones receiving the funds - and must start flowing immediately if we're to see any progress in the negotiations as the year progresses."

Led by Friends of the Earth International, 287 groups from 53 three countries have signed a letter to US President Barack Obama, calling on him to use US influence in the negotiations to ensure the World Bank does not take on a role in controlling funds for developing countries to tackle climate change.

The organisations that are backing the letter include Friends of the Earth International, Action Aid! International, the World Development Movement, Third World Network, Christian Aid UK, and Jubilee South, 350.org, Greenpeace USA from the US.

The letter questions the World Bank's track record of imposing policy conditions and programs on developing countries and its lack of democratic accountability.

Additionally, it notes that developing countries, which will bear the heaviest burden from climate change, are the least represented inside the Bank.

It further notes that the World Bank continues to be a top financier of fossil fuels. As of April 2010, it had already hit a record high for annual fossil fuel lending, with (US) $4.7 billion primarily for coal.

The letter instead calls for US support for the creation of a multilateral climate fund under the UNFCCC that has an equitable governance structure, prioritizes the participation of affected communities, operates with full transparency and accountability, and provides direct access to funding.

ENDS

Notes to editors:

1. A copy of the letter from civil society organisations to President Obama is available on request.

2. Friends of the Earth is supporting the campaign for a tax on financial transactions - a Robin Hood Tax - to provide finance for developing countries to develop cleanly and adapt to the effects of climate change. For further information visit www.robinhoodtax.org.uk

3. Friends of the Earth believes the environment is for everyone. We want a healthy planet and a good quality of life for all those who live on it. We inspire people to act together for a thriving environment. For further information visit www.foe.co.uk

If you're a journalist looking for press information please contact the Friends of the Earth media team on 020 7566 1649.

Published by Friends of the Earth Trust