Sarah Whittington writes...
At a side event co-sponsored by Christian Aid last night, speakers discussed the role of the World Bank in climate finance and energy provision in developing countries.
With the World Bank pushing to govern a new fund set up by the UNFCCC, this event questioned how an institution with such a high level of fossil fuel investment could be trusted to manage climate change mitigation in developing countries.
In the last five years World Bank funding for fossil fuels has increased 40-fold in developing countries. Siziwe Khanyile from groundWork, South Africa, spoke about the social protest in her country against the Medupi power plant - funded by a World Bank loan in spring 2010. She made it clear that this investment will not alleviate poverty or increase access to electricity for poor communities. Instead, it will supply electricity only to heavy industry, increase the cost of supply for the local population and contribute to a doubling of South Africa's power sector carbon emissions. She pointed out that Africa as a continent is on the frontline of climate change and that we need a global campaign to oppose any future projects which exacerbate the problem.
Christian Aid partner Srinivas Krishnaswamy from India then spoke powerfully about the need for the World Bank to redefine its role and move away from fossil fuel investment towards a focus on equitable energy access. With so many people in developing countries currently suffering from energy poverty, renewable de-centralised energy systems could help address poverty and climate change concerns. These could also be cheaper to deliver, especially in rural areas. He said that the World Bank could be very influential in the transition to a low carbon model:
"The role of the World Bank should lead the way in funding low carbon energy generation even if technologies are costlier than traditional options."
Finally we heard from Yoke Ling Chee from Third World Network , another Christian AId partner. She spoke about the role of the World Bank in delivering climate finance and the link to the negotiations here in Cancun. Many developing countries do not trust the World Bank to govern UN climate funds because of a lack of accountability. Climate finance is crucial to securing an international agreement, and therefore she said that while we should continue to push for the World Bank to be more accountable, the focus should now be on building consensus for a new fund under the UNFCCC.
While the World Bank continues to invest so heavily in fossil fuels despite ever increasing consequences, it is difficult for anyone to trust it can deliver what poor countries really need in the face of climate change.
Campaigners at the march in Cancun city on Tueday 7 December
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