Query: subjects: "Environment and Natural Resources"
|Title||Is the EIB's climate change loan to Brazil sustainable?|
|Series title||Both ENDS Policy Note|
|Subject||Environment and Natural Resources|
|Keywords||climate change, energy resources, finance, sustainable development|
|Abstract||In 2011, the European Investment Bank (EIB) announced it would provide a €500 million Climate Change Framework Loan (CCFL) to the Brazilian Development Bank (BNDES), mainly for projects in the renewable energy sector supporting climate change mitigation. BNDES’ track record of supporting a number of highly controversial hydropower projects in the Amazon, combined with its support for polluting energy companies like PetroBras, put civil society organisations in Europe and Brazil on alert, and they have followed this loan with a critical eye. The loan has also raised questions in the European parliament. However, attempts to obtain more information on the type of projects to be supported by the loan and the|
safeguards to be applied were not fruitful due to BNDES’ refusal to disclose any information or engage with civil society organisations. Based on discussions with civil society organisations in Brazil, a web and literature review, and the limited information obtained from BNDES and the EIB, this report attempts to find answers to four basic questions: • Are EIB climate change investments deployed where they are most needed? • Is BNDES’s development model climate-friendly?
• Does BNDES comply with basic EIB rules on public participation, accountability, and transparency? • How can the EIB’s CCFL to BNDES contribute to promoting a sustainable energy path?
|Document type||Policy document|
|Rights||© 2012 Both ENDS|