March 26, 2005

World Bank subsidizes carbon emissions

Gristmill reports that "from 1992 through late 2004, the World Bank Group approved $11 billion in financing for 128 fossil-fuel extraction projects in 45 countries. These projects will lead to more than 43 billion tons of carbon-dioxide emissions. [...] Many people, from the world's most disenfranchised to Nobel laureates to internal whistleblowers, have tried to convince the bank to realign its energy portfolio during the past decade. Last year, an exhaustive review self-commissioned by the bank and chaired by former Indonesian environment minister Emil Salim called upon the institution to divest its portfolio of the most egregious fossil-fuel projects. But the bank's action plan adopted in September represented business as usual."

In this, the World Bank joins forces with national governments worldwide. Fossil fuel extraction is one of most heavily subsidized economic activities (others are agriculture, road transportation, water, fisheries, and forestry).

Fuel subsidies are bad for tax payers, prosperity and the environment.

No comments:

Post a Comment