Connect with us

Business

Up to $41 billion in World Bank climate finance unaccounted for, Oxfam finds

Published

4 minute read

News release from Oxfam International

Up to $41 billion in World Bank climate finance —nearly 40 percent of all climate funds disbursed by the Bank over the past seven years— is unaccounted for due to poor record-keeping practices, reveals a new Oxfam report.

An Oxfam audit of the World Bank’s 2017-2023 climate finance portfolio found that between $24 billion and $41 billion in climate finance went unaccounted for between the time projects were approved and when they closed.

There is no clear public record showing where this money went or how it was used, which makes any assessment of its impacts impossible. It also remains unclear whether these funds were even spent on climate-related initiatives intended to help low- and middle-income countries protect people from the impacts of the climate crisis and invest in clean energy.

“The Bank is quick to brag about its climate finance billions —but these numbers are based on what it plans to spend, not on what it actually spends once a project gets rolling,” said Kate Donald, Head of Oxfam International’s Washington D.C. Office. “This is like asking your doctor to assess your diet only by looking at your grocery list, without ever checking what actually ends up in your fridge.”

The Bank is the largest multilateral provider of climate finance, accounting for 52 percent of the total flow from all multilateral development banks combined.

The issue of climate finance will take center stage at this year’s COP in Azerbaijan, where countries are set to negotiate a new global climate finance goal, the New Collective Quantified Goal (NCQG). Climate activists are demanding the Global North provide at least $5 trillion a year in public finance to the Global South “as a down payment towards their climate debt” to the countries, people and communities of the Global South who are the least responsible for climate breakdown but are the most affected. Oxfam warns that the lack of traceable spending could undermine trust in global climate finance efforts at this critical juncture.

“Climate finance is scarce, and yes, we know it’s hard to deliver. But not tracking how or where the money actually gets spent? That’s not just some bureaucratic oversight —it’s a fundamental breach of trust that risks derailing the progress we need to make at COP this year. The Bank needs to act like our future depends on tackling the climate crisis, because it does,” said Donald.

Oxfam’s investigation revealed that obtaining even basic information on how the World Bank is using climate finance was painstaking and difficult.

“We had to sift through layers of complex and incomplete reports, and even then, the data was full of gaps and inconsistencies. The fact that this information is so hard to access and understand is alarming —it shouldn’t take a team of professional researchers to figure out how billions of dollars meant for climate action are being spent. This should be transparent and accessible to everyone, most importantly communities who are meant to benefit from climate finance,” said Donald.

Notes to editors

Download Oxfam’s new report “Climate Finance Unchecked.”

Todayville is a digital media and technology company. We profile unique stories and events in our community. Register and promote your community event for free.

Follow Author

Business

Two major banks leave UN Net Zero Banking Alliance in two weeks

Published on

From The Center Square

Under Texas law, financial institutions that boycott the oil and natural gas industry are prohibited from entering into contracts with state governmental entities. State law also requires state entities to divest from financial companies that boycott the oil and natural gas industry by implementing ESG policies.

Not soon after the general election, and within two weeks of each other, two major financial institutions have left a United Nations Net Zero Banking Alliance (NZBA).

This is after they joined three years ago, pledging to require environmental social governance standards (ESG) across their platforms, products and systems.

According to the “bank-led and UN-convened” NZBA, global banks joined the alliance, pledging to align their lending, investment, and capital markets activities with a net-zero greenhouse gas emissions by 2050, NZBA explains.

Since April 2021, 145 banks in 44 countries with more than $73 trillion in assets have joined NZBA, tripling membership in three years.

“In April 2021 when NZBA launched, no bank had set a science-based sectoral 2030 target for its financed emissions using 1.5°C scenarios,” it says. “Today, over half of NZBA banks have set such targets.”

There are two less on the list.

Goldman Sachs was the first to withdraw from the alliance this month, ESG Today reported. Wells Fargo was the second, announcing its departure Friday.

The banks withdrew two years after 19 state attorneys general launched an investigation into them and four other institutions, Bank of America, Citigroup, JP Morgan Chase and Morgan Stanley, for alleged deceptive trade practices connected to ESG.

Four states led the investigation: Arizona, Kentucky, Missouri and Texas. Others involved include Arkansas, Indiana, Kansas, Louisiana, Mississippi, Montana, Nebraska, Oklahoma, Tennessee and Virginia. Five state investigations aren’t public for confidentiality reasons.

The investigation was the third launched by Texas AG Ken Paxton into deceptive trade practices connected to ESG, which he argues were designed to negatively impact the Texas oil and natural gas industry. The industry is the lifeblood of the Texas economy and major economic engine for the country and world, The Center Square has reported.

The Texas oil and natural gas industry accounts for nearly one-third of Texas’s GDP and funds more than 10% of the state’s budget.

It generates over 43% of the electricity in the U.S. and 51% in Texas, according to 2023 data from the Energy Information Administration.

It continues to break production records, emissions reduction records and job creation records, leading the nation in all three categories, The Center Square reported. Last year, the industry paid the largest amount in tax revenue in state history of more than $26.3 billion. This translated to $72 million a day to fund public schools, universities, roads, first responders and other services.

“The radical climate change movement has been waging an all-out war against American energy for years, and the last thing Americans need right now are corporate activists helping the left bankrupt our fossil fuel industry,” Paxton said in 2022 when launching Texas’ investigation. “If the largest banks in the world think they can get away with lying to consumers or taking any other illegal action designed to target a vital American industry like energy, they’re dead wrong. This investigation is just getting started, and we won’t stop until we get to the truth.”‘

Paxton praised Wells Fargo’s move to withdraw from “an anti-energy activist organization that requires its members to prioritize a radical climate agenda over consumer and investor interests.”

Under Texas law, financial institutions that boycott the oil and natural gas industry are prohibited from entering into contracts with state governmental entities. State law also requires state entities to divest from financial companies that boycott the oil and natural gas industry by implementing ESG policies. To date, 17 companies and 353 publicly traded investment funds are on Texas’ ESG divestment list.

After financial institutions withdraw from the NZBA, they are permitted to do business with Texas, Paxton said. He also urged other financial institutions to follow suit and “end ESG policies that are hostile to our critical oil and gas industries.”

Texas Comptroller Glenn Hegar has expressed skepticism about companies claiming to withdraw from ESG commitments noting there is often doublespeak in their announcements, The Center Square reported.

Notably, when leaving the alliance, a Goldman Sachs spokesperson said the company was still committed to the NZBA goals and has “the capabilities to achieve our goals and to support the sustainability objectives of our clients,” ESG Today reported. The company also said it was “very focused on the increasingly elevated sustainability standards and reporting requirements imposed by regulators around the world.”

“Goldman Sachs also confirmed that its goal to align its financing activities with net zero by 2050, and its interim sector-specific targets remained in place,” ESG Today reported.

Five Goldman Sachs funds are listed in Texas’ ESG divestment list.

The Comptroller’s office remains committed to “enforcing the laws of our state as passed by the Texas Legislature,” Hegar said. “Texas tax dollars should not be invested in a manner that undermines our state’s economy or threatens key Texas industries and jobs.”

Continue Reading

Business

The CBC gets $1.4 billion per year, but the Trudeau government wants to give it more

Published on

From LifeSiteNews

By Clare Marie Merkowsky

A Heritage Committee report is recommending “that the Government of Canada provide a substantial and lasting increase in the parliamentary appropriation for CBC, allowing it to eliminate its paid subscription services and gradually end its reliance on commercial advertising revenues.” 

The Liberal-run Heritage Committee is demanding millions more in funding for the Canadian Broadcasting Corporation despite the fact it already gets roughly $1.4 billon from the government annually.

According to information obtained and published December 16 by Blacklock’s Reporter, a Heritage Committee report is recommending “that the Government of Canada provide a substantial and lasting increase in the parliamentary appropriation for CBC, allowing it to eliminate its paid subscription services and gradually end its reliance on commercial advertising revenues.”  

While the report did not suggest an amount, CBC CEO Catherine Tait previously testified that the outlet required funding in the “$400 million to $500 million range.” 

While the report suggested throwing more taxpayer dollars at the failing outlet, Conservatives wrote a dissenting report, arguing the media platform should be defunded.   

“The CBC cut hundreds of jobs while awarding lavish bonuses,” Conservative MP Kevin Waugh said, referencing CBC managers taking $14.9 million in bonuses this year while cutting 346 jobs.  

“This disgraceful abuse of taxpayer dollars when Canadians are struggling for financial survival has contributed to the ‘defund the CBC’ movement,” he continued.  

Waugh’s comments echo those of Canadian Taxpayer Federation Alberta director Kris Sims, who called on Parliament to abolish all taxpayer funding to the CBC, arguing that propping up the media outlet is not only a waste of money but also creates a conflict of interest for journalists.  

Indeed, not only has the CBC’s network audience plummeted, but many have pointed out that the outlet has become nothing more than a mouthpiece for Prime Minister Justin Trudeau’s government.  

In seeming confirmation of Sims’ concerns, in October, Liberal Heritage Minister Pascale St-Onge’s department admitted that federally funded media outlets buy “social cohesion.”  

Additionally, in September, House leader Karina Gould directed mainstream media reporters to “scrutinize” Conservative Party leader Pierre Poilievre, who has repeatedly condemned government-funded media as an arm of the Liberals.  

Gould’s comments were in reference to Poilievre’s promise to defund the CBC if elected prime minister. Poilievre is a longtime critic of government-funded media, especially the CBC. 

There have also been multiple instances of the CBC pushing what appears to be ideological content, including the creation of pro-LGBT material for kids, tacitly endorsing the gender mutilation of children, promoting euthanasia, and even seeming to justify the burning of mostly Catholic churches throughout the country. 

Despite this, beginning in 2019, Parliament changed the Income Tax Act to give yearly rebates of 25 percent for each news employee in cabinet-approved media outlets earning up to $55,000 a year to a maximum of $13,750.  

The Canadian Heritage Department since admitted that the payouts are not even sufficient to keep legacy media outlets running and recommended that the rebates be doubled to a maximum of $29,750 annually. 

Last November, Trudeau again announced increased payouts for legacy media outlets that coincide with the leadup to the 2025 election. The subsidies are expected to cost taxpayers $129 million over the next five years. 

Similarly, Trudeau’s 2024 budget earmarked $42 million in increased funding for the CBC in 2024-25.  

Continue Reading

Trending

X