10 December 2014
Dirty deals flag need for climate finance rules
If you stick a dollar bill under a microscope it is full of dirt. It turns out something similar is true of climate finance - the billions of dollars developed countries pay to help developing countries cope with the effects of climate change and create cleaner energy systems, industry and cities.
Last week, the Associated Press (AP) broke a story that nearly $1 billion in loans earmarked by Japan as climate finance have been used to fund the construction of three coal-fired power plants in Indonesia. Burning coal is one of the most intensive ways to contribute to climate change.
Indonesian coal plants are not the only dirty deals masquerading as climate finance, an Institute for Policy Studies analysis can reveal.
As part of the same “fast start” financing examined by AP, the Japanese Bank for International Cooperation (JBIC, the country's export credit agency) gave a $600 million loan to Brazilian state oil company Petrobras.
Full article at trust.org