NGO
Forum on ADB, a network of over 250 civil society organizations (CSO) around
the world calls on the Asian Development Bank (ADB) to fulfill its commitment
to the Paris Agreement as the Bangkok Climate Change Conference (UNCCC) 2018
continues. The network reiterates the
question whether ADB will address the climate crisis or continue its business
as usual pursuit of economic growth driven by dirty energy?
The
current shift in global development financing, specifically in relation to
Asia’s developing economies have raised the stake on the governance mechanisms
of multilateral banks, particularly given that in the global context, private
banking institutions are committing to end or phase out investments in fossil
fuels and non-renewables. Likewise, there is a real struggle in holding private
investors accountable especially in the realm of development financing. The
establishment of fresh lending institutions, such as the Asian Infrastructure
Investment Bank (AIIB), New Development Bank (NDB) and the ascension of China
as an economic and political superpower seems to signal a new order in the
continent’s aid architecture with a push for mega infrastructure investments.
Rayyan
Hassan, executive director of NGO Forum on ADB stated that “the Forum is
gravely concerned with these seismic shifts in global development financing,
specifically in relation to Asia’s developing economies. The intrusion of
private capital in mega infrastructure investments, have raised the ante on the
governance mechanisms, or lack thereof, of multilateral banks especially the
ADB. The network believes this lack of accountability of private capital is a
telling sign for all future especially energy intensive projects being
championed by the ADB through its Strategy 2030”.
The
ADB at present is reviewing its Strategy 2030 and has had made considerable
shifts in its lending in the energy sector. ADB has set up a controversial
clean technology fund or CTF through which in 2013 it has financed - without
meaningful consultation or attention to environmental or social safeguards - over 150 Million USD in geothermal energy
projects in Indonesia alone. Geothermal
technology and gas projects are still riddled with underlying environmental
impacts including GHG emissions .
In
2016, the ADB through its ADB CTF Private Sector Geothermal Program: Indonesia
& Philippines was attempting to seek further funding, again without the
mandatory meaningful public consultation required by the ADB. In addition, ADB has provided direct support
in the name of "clean energy" for the notorious mega-infrastructure
Financial Intermediary, PT Sarana Multi Infrastruktur, (PT SMI) with a
well-documented track record of violations of environmental and social
safeguards. Given that the majority of geothermal projects in Indonesia are
targeted at forest areas inhabited by Indigenous and other forest-dependent
peoples, lack of attention to the environmental and social impacts is a
tremendous problem.
NGO
Forum also notes with extraordinary concern that the ADB is currently
attempting to place Indonesia's entire National Energy Company (PLN) under
"borrower system" rules instead of requiring mandatory implementation
of all ADB Safeguards. Given the dismal environmental and social track record
of PLN and the borrower system, this call into question any claims of a focus
on clean technology with meaningful environmental and social safeguards.
The
ADB has also a track record of financings dirty fossil fuel projects such as
the Tata Mundra Coal Power Plant in India, Visayas Coal Project in the
Philippines, and many other investments in gas projects in the region. At
present, ADB is looking to invest in the CHP5 Coal Power Plant in Mongolia. The
bank has also sent a team to see the feasibility of the Upper Karnali Hydropower
Dam in Nepal as a possible investment venture. In fact, the majority of its 41
energy pipeline projects published online, are based on the extraction of
fossil fuels or other forms of retrogressive energy investments, including
large hydro and waste to energy (incineration) projects.
The
network is asking the ADB to provide a clear plan of action on transitioning
from Fossil Fuel energy to fully renewable energy investments and to ensure and
publicly commit that these investments - including existing investments as
described above -- are carried out under fully implemented ADB safeguards with
mandatory meaningful consultation with affected communities, strict avoidance
of forced resettlement, and with careful and documented adherence to environmental
safeguard requirements, including the protection of forest and forest peoples,
and mandatory social safeguards for the protection of the lives and livelihoods
of affected communities, with a specific focus on women, Indigenous peoples and
the vulnerable as required by ADB safeguards. The transition from Fossil Fuel
to RE must have clear indicators and targets with mandatory indicators
including gender-disaggregated documentation of environmental and social
impacts and the prevention of those impacts, including information disclosure,
consultation, avoidance of land evictions.
Lastly,
NGO Forum on ADB calls for clean energy transition indicators in line with
countries and their respective NDCs (Nationally Determined Contributions) as
per the Paris Agreement.(By Jen Derillo Santos)
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