(United Nations, Geneva, 20 May 2011) At its 46th session from 2-20 May 2011 in Geneva, the U.N. Committee on Economic, Social and Cultural Rights expressed deep concern at the potential impact of the Ilisu dam under construction in Turkey, as well as other dams, on the enjoyment of economic, social and cultural rights in the areas concerned, especially with regard to forced evictions, resettlements, displacement, and compensation of people affected as well as the environmental and cultural impacts of the construction of these dams. NGO campaigners were successful in 2009 in having European export credit agency financial support for the Ilisu dam cancelled.
Index for April 2011
Volume 10, Issue 5
Volume 10, Issue 4
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(Ex-Im Bank and Bloomberg, Washington, 31 March 2011) The Export-Import Bank of the United States (Ex-Im Bank) has announced its adoption of the Equator Principles, a globally recognized benchmark for financial institutions to determine, assess and manage the social and environmental risks of international project financing. Ex-Im Bank's adoption of the Equator Principles will align its environmental requirements for project-finance transactions with those of commercial banks that apply these principles. Meanwhile, environmental NGOs have noted that the US Ex-Im Bank support for the Kusile coal fired power plant in South Africa represented the largest carbon emitting project in its history and raised concerns of injustice, outdated energy investments and lack of job creation.
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(ECA Watch, FERN, Both Ends, Brussels, 6 April 2011) The European Parliament in its plenary session, on 5 April, adopted a proposal to regulate Export Credit Agencies (ECAs) that will force them to become more transparent on where their funds come from and go to, as well as how they charge for social and environmental risks. Furthermore, the Parliament requires ECAs to comply with EU human rights objectives in their activities, and to phase out the subsidising of fossil fuel projects in line with commitments adopted by the G20 in 2009. The policy also justifies the Jubilee Debt Campaign’s concerns about export credit debt
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(International Law Office, London, 27 April 2011) On February 25 2011 the rules governing the financing that export credit agencies can provide for the purchase of aircraft changed. The new rules apply to all forms of official state support for export credits and set out the most favourable terms allowed for aircraft financings supported by the export credit agencies of members of the Organisation for Economic Cooperation and Development (OECD), and Brazil. The objective of the new rules is to: "encourage competition among exporters based on quality and price of goods and services exported rather than on the most favourable officially supported financial terms and conditions."
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Bloomberg, 25 April 2011) -- When Tele Norte Leste Participacoes SA, Brazil’s biggest land-line company, was shopping for network equipment last year, Huawei Technologies Co.’s offer stood out: access to China Development Bank’s $30 billion credit line...“The Chinese are filling the space left empty by Americans and Europeans,” Tele Norte's CFO Zornig said in an interview. “They are very aggressive and they have a lot of money.” “Export credit programs are available everywhere,” said Adolfo Hernandez, Alcatel-Lucent's president for Europe, the Middle East and Africa. “The difference in China is mainly that they're bigger.” The extent of vendor financing by Chinese companies has raised concern with European and U.S. government agencies. In September, the European Union opened a probe into unfair trade practices that threatened curbs on imports of wireless modems from Chinese suppliers such as Huawei.
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(Bloomberg, Washington, 20 April 2011) The U.S. Department of Agriculture has added about $2.7 billion in funds to support farm exports. The biggest single target for the export-loan credits was South Korea, at $650 million, according to statements released today by the USDA. Shippers with goods for Central and South America, the Middle East, Africa and China could also benefit. A recent Global Subsidies Initiative article highlighted the debate over US subsidies for agro-fuel crops and their impact of the food crop inflation which has caused so much hardship in the global south.
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(Guardian, London, 25 April 2011) On Wednesday 27 April Lisa Nandy, UK Labour MP introducing a ten minute rule bill in parliament which shone a light on a little-known government department – the Export Credits Guarantee Department (ECGD). The ECGD insures British companies working on risky projects and in risky places. Overwhelmingly, it underwrites large companies involved in aerospace, the arms trade or fossil fuel industries; the market provides insurance for the rest.
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(Guardian, London, 4 April, 2011) The World Bank is planning to restrict the money it gives to coal-fired power stations, bowing to pressure from green campaigners to radically revise its funding rules.