Christian Aid back Co-op Bank over international finance concerns

-17/04/06

A number of


Christian Aid back Co-op Bank over international finance concerns

-17/04/06

A number of leading church, development and environment charities, including Christian Aid and Friends of the Earth, have welcomed the commitment by The Co-operative Bank to hold no investments in the World Bankís private sector arm, the International Finance Corporation (IFC).

It is understood that The Co-operative Bank had become increasingly concerned about the IFCís commitment to fossil fuel extraction and its failure to provide meaningful investment for renewable energy projects.

Industry monitors estimate that in 2005 IFC was the worldís largest multilateral financier of fossil fuel extraction. Meanwhile, last year the agency devoted a mere 4% of its total energy lending to renewables, and has set no concrete goals for increasing such financing.

ìWe are very pleased at The Co-operative Bankís action. Climate change is the single greatest threat facing the planet. Yet the IFC uses public funds to subsidise rich oil giants who exploit fossil fuel resources in developing countries,î said Tony Juniper, executive director of Friends of the Earth.

ìWeíve looked at the recent investments of the World Bankís IFC and concluded that there is an unhealthy focus on fossil fuel technologies. Henceforth, we will withhold investments until such time as renewable technologies are much better supportedî, said Paul Monaghan, head of sustainable development at The Co-operative Bank.

The IFC ñ a publicly-backed development institution ñ is consistently unable to show evidence that its investments in oil, gas and mining have positive impacts on poverty alleviation.

ìPoor people are on the frontline of climate change and yet the IFC continues to pump public money into fossil fuel projects on their doorstep. Not only is this immensely ironic but these projects themselves are so often also a source of misery to the poor communities living around them,î added Andrew Pendleton of Christian Aid.

The Bretton Woods Project, a watchdog of the World Bank and IMF, believes the timing of the announcement is significant. ‘The IFC has just finished systematically weakening the environmental and social safeguards which act as standards for private finance.

ìIt has abandoned any pretension to a leadership role in the debate over the role of private finance in development,î said project coordinator Jeff Powell.

ìWe hope this decision by The Co-op will lead other banks to look again at their holdings. This is what it will take to force the IFC into a fundamental re-think of their failed development model.î

The Co-operative Bank has also been praised for its commitment to equal opportunities. It recently declined to provide services to the controversial group Christian Voice, which has been part of an orchestrated campaign against Jerry Springer ñ The Opera, because ìChristian Voice is engaged in discriminatory pronouncements, based on the grounds of sexual orientation.î

A wide range of church, peace, development and human rights organisations use the Co-operative Bank as an ethical alternative to the transnational banking giants.


Christian Aid back Co-op Bank over international finance concerns

-17/04/06

A number of leading church, development and environment charities, including Christian Aid and Friends of the Earth, have welcomed the commitment by The Co-operative Bank to hold no investments in the World Bankís private sector arm, the International Finance Corporation (IFC).

It is understood that The Co-operative Bank had become increasingly concerned about the IFCís commitment to fossil fuel extraction and its failure to provide meaningful investment for renewable energy projects.

Industry monitors estimate that in 2005 IFC was the worldís largest multilateral financier of fossil fuel extraction. Meanwhile, last year the agency devoted a mere 4% of its total energy lending to renewables, and has set no concrete goals for increasing such financing.

ìWe are very pleased at The Co-operative Bankís action. Climate change is the single greatest threat facing the planet. Yet the IFC uses public funds to subsidise rich oil giants who exploit fossil fuel resources in developing countries,î said Tony Juniper, executive director of Friends of the Earth.

ìWeíve looked at the recent investments of the World Bankís IFC and concluded that there is an unhealthy focus on fossil fuel technologies. Henceforth, we will withhold investments until such time as renewable technologies are much better supportedî, said Paul Monaghan, head of sustainable development at The Co-operative Bank.

The IFC ñ a publicly-backed development institution ñ is consistently unable to show evidence that its investments in oil, gas and mining have positive impacts on poverty alleviation.

ìPoor people are on the frontline of climate change and yet the IFC continues to pump public money into fossil fuel projects on their doorstep. Not only is this immensely ironic but these projects themselves are so often also a source of misery to the poor communities living around them,î added Andrew Pendleton of Christian Aid.

The Bretton Woods Project, a watchdog of the World Bank and IMF, believes the timing of the announcement is significant. ‘The IFC has just finished systematically weakening the environmental and social safeguards which act as standards for private finance.

ìIt has abandoned any pretension to a leadership role in the debate over the role of private finance in development,î said project coordinator Jeff Powell.

ìWe hope this decision by The Co-op will lead other banks to look again at their holdings. This is what it will take to force the IFC into a fundamental re-think of their failed development model.î

The Co-operative Bank has also been praised for its commitment to equal opportunities. It recently declined to provide services to the controversial group Christian Voice, which has been part of an orchestrated campaign against Jerry Springer ñ The Opera, because ìChristian Voice is engaged in discriminatory pronouncements, based on the grounds of sexual orientation.î

A wide range of church, peace, development and human rights organisations use the Co-operative Bank as an ethical alternative to the transnational banking giants.