2017年7月6日

Press Release: Accreditation for Coal-Supporting Japanese Institutions Poses Serious Reputational and Moral Risk for Green Climate Fund

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FOR IMMEDIATE RELEASE
July 6, 2017

CONTACT: Marie Tanao, 350.org Japan: +81-90-2183-2113, [email protected]

Accreditation for Coal-Supporting Japanese Institutions Poses Serious Reputational and Moral Risk for Green Climate Fund

Civil Society Representatives Intervene during GCF Accreditation Consideration of Bank of Mitsubishi Tokyo UFJ and Japan International Cooperation Agency

CSO statement to the GCF: world.350.org/ja/files/2017/07/GCFJapaneseCSOstatement.pdf
Video of CSO Intervention Statement (From15:22 mark): drive.google.com/file/d/0BzOm8egPH8N8eEJyMktvYnpGT2c/view

SONGDO — Representatives from civil society groups delivered an intervention statement at the Green Climate Fund (GCF) Board’s 17th meeting in Songdo, Korea. The statement called on Board members to reject accreditation applications from the Bank of Mitsubishi Tokyo UFJ (BTMU) and Japan International Cooperation Agency (JICA), Japan’s ODA agency, because of their massive support for fossil fuel projects undermining any green credentials the organisations might claim.

During the period 2003-2017(1), JICA provided $USD3.7 billion in financing for coal power plants in India, Vietnam and Bangladesh. BTMU’s parent company MUFG provided an estimated USD$9.57 billion in loans to extreme fossil fuel companies over a 3 year period during 2014-16(2) and is massively increasing its exposure to coal power–a 156% increase between 2015 and 2016(3) even after the conclusion of the Paris Agreement.

The intervention statement, endorsed by over 70 civil society groups worldwide(4), argued that given these developments, it is not appropriate JICA and BTMU be granted accreditation by the GCF. They added that due to JICA and BTMU’s significant financial support for fossil fuel development, their accreditation would represent serious reputational and moral risk for the GCF as an international institution tasked with sparking a paradigm shift towards climate-resilient development.

During deliberations on the two institutions’ accreditation applications, a Swedish Board member raised a similar concern about carbon footprint. The member mentioned a previous Board decision which asked the accreditation panel to monitor the carbon footprint of accredited agencies. Additionally, when reassessing accreditation, the Board should look at whether the accredited entity has been able to reduce its carbon footprint. Amidst an unprecedented move by the Board Co-Chair which prevented the intervention statement by civil society being read before the Board’s decision, the Board approved both accreditation applications without qualification.

Given this decision, Shin Furuno, 350.org Japan Divestment Campaigner responded: “It is deeply disappointing that an international institution tasked with supporting developing countries to make a paradigm shift towards decarbonization has approved the accreditation of institutions like Bank of Tokyo-Mitsubishi UFJ and JICA, which are major financiers of coal fired power and fossil fuel expansion worldwide. This kind of approval is not in the spirit of the Paris Agreement,” adding, “Instead, the GCF Board should live up to its mandate and require Accredited Entities to disclose their exposure to carbon assets, and set clear metrics and targets to reduce portfolio emissions in line with the Paris Agreement of keeping global temperature rise below 1.5-2 degrees.”   

The civil society groups stated that they remain committed to advocating for the GCF to require all Accredited Entities to disclose their exposure to carbon-related assets, outline investment policies to manage climate risk in compliance with the 1.5-2 degree target cap on global warming, and set clear metrics and targets for decarbonizing their investment portfolios, as recommended by the Task Force on Climate Related Financial Disclosures.

(1) JACSES, List of Coal Power Plants funded by JBIC, NEXI and JICA (2003-2017)
(2) https://www.ran.org/banking_on_climate_change_2017
(3) See at 2.
(4) See full list in the Notes to Editors section.

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Notes to Editors:

Intervention Statement Endorsed by:

  1. 350.org Japan
  2. Friends of the Earth Japan
  3. Kiko Network
  4. Rainforest Action Network Japan
  5. Greenpeace Japan
  6. Japan Center for a Sustainable Environment and Society (JACSES)
  7. Japan Tropical Forest Action Network (JATAN)
  8. East Asia Environmental Information Center
  9. Asian Peoples’ Movement on Debt and Development (APMDD)
  10. Adivasi Mulvasi Astitva Raksha manch – India
  11. AKSI – Indonesia
  12. Alliance for Tax and Fiscal Justice – Nepal
  13. All Nepal Peasant’s Federation (ANPFa) – Nepal
  14. All Nepal Peasants Federation -Nepal
  15. All Nepal Womens Association -Nepal
  16. ARENA – Asia/Regional
  17. Bangladesh Krishok Federation -Bangladesh
  18. Bangladesh Jatiyo Sramik Jote -Bangladesh
  19. Bukluran ng Manggagawang Pilipino (BMP/Workers Solidarity) -Philippines
  20. Bulig Visayas – Philippines
  21. Campaign for Climate Justice -Nepal
  22. Center for Energy Ecology for Development (CEED) – Philippines
  23. Center for Environmental Justice, CEJ /Friends of the Earth – Sri Lanka
  24. Climate Watch –Thailand
  25. Community Development Library (CDL-Bangladesh)
  26. Debt Watch – Indonesia
  27. Environics  Trust – India
  28. EquityBD – Bangladesh
  29. Focus on the Global South –Asia/Regional
  30. Freedom from Debt Coalition (FDC) – Philippines
  31. GEFONT –Nepal
  32. Gitib -Philippines
  33. Himalaya Niti Abhiyan – India
  34. Human Rights Alliance – Nepal
  35. Indian Social Action Forum (INSAF) –India
  36. Institute for Essential Services Reforms (IESR) –Indonesia
  37. Jagaran Nepal
  38. Jatam – Indonesia
  39. Kalayaan –Pilipinas -Philippines
  40. Kerala Independent Fishworkers Federation – India
  41. Koalisi Anti Utang – Indonesia
  42. Koalisyong ng Pabahay ng Piipinas (KPP) -Philipines
  43. KRUHA – Peoples Right to Water Coaliton – Indonesia
  44. LDC Watch -Global
  45. Migrant Forum in Asia (MFA)
  46. Mines, minerals and People (mmP) – India
  47. Monitoring Sustainability of Globalisation – Malaysia
  48. Nadi Gati Morcha – India
  49. National Alliance Right to Food Networks – Nepal
  50. National Federation of Hawkers -Bangladesh
  51. National Federation of Hawkers – India
  52. National Federation of Women Hawkers- India
  53. National Women Peasants Association, Nepal
  54. Nepal Youth Peasants Association –Nepal
  55. Our Rivers Our Life – Philippines
  56. Pakistan Fisherfolk Forum (PFF) – Pakistan
  57. Pakistan Kissan Rabita Committee – Pakistan
  58. Philippine Movement for Climate Justice (PMCJ) –Philippines
  59. River Basin Friends – India
  60. Rural Reconstruction Nepal
  61. Sanlakas Philippines
  62. Sawit Watch – Indonesia
  63. SEAFISH for Justice – SEA/Regional
  64. Solidaritas Perempuan (Women) – Indonesia
  65. South Asian Alliance for Povery Eradication (SAAPE) –SA Regional
  66. South Asia Food Sovereignty Network –SA/ Regional
  67. South Asia Peasants Coalition –SA/Regional
  68. SUPRO – Bangladesh
  69. Task Force Detainees of the Philippines (TFDP) -Philippines
  70. Trade Union Policy Institute(TUPI) -Nepal
  71. Unnayan Onneshan -Bangladesh
  72. VOICE – Bangladesh
  73. Youth for Climate Justice ( Y4CJ) – Philippines