Questionable Leadership Ambitions:
European Investment Bank (EIB) President Nadia Calviño has expressed aspirations for the EIB to lead in green finance, aiming to support large-scale projects addressing global challenges like climate change. However, this ambition contrasts starkly with the reality experienced by communities affected by EIB-backed projects, revealing the bank’s inadequacy in spearheading a green transition.
Poor Investment Selection:
The EIB’s track record in selecting viable investments is notably deficient. Many local communities impacted by EIB projects have raised concerns about inadequate due diligence performed by the bank, leading to significant issues with project viability and community consultation. For instance, a renewable energy project in Nepal received criticism for its lack of consultation with affected communities, resulting in protests and violence.
Challenges in Accountability:
Despite findings confirming non-compliance with EIB rules in certain projects, the bank has failed to rectify the situation or provide remedies for the harm caused. Complaints regarding environmental damage and violations of indigenous rights remain prevalent, posing challenges not only to affected communities but also undermining the EIB’s climate ambitions.
Repetitive Offenders:
Multilateral banks like the EIB often fund projects associated with repeat environmental and human rights violations, casting doubt on their commitment to sustainable development. The Nepal Electricity Authority (NEA), for instance, has faced numerous complaints related to inadequate compensation, flawed impact assessments, and disregard for indigenous rights in its projects.
Call for Accountability and Change:
To truly become a leader in green finance, the EIB must prioritize accountability and community consultation in project design and implementation. The recent appointments of new leaders provide an opportunity for positive change, with expectations for President Calviño to ensure remedies for negative impacts and for Mr. Cunha to enhance the effectiveness of the complaints mechanism. Failure to address these issues will perpetuate the EIB’s greenwashing and hinder genuine progress toward a sustainable future.
SOURCE: Ref Image from Euronews.com
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