Aiding Oil, Harming the Climate

Bali, Indonesia – Oil Change International today released a new database and report that reveals over $61.3 billion in international public financing has benefited the oil and gas industry since 2000.

Just last week, the European Parliament overwhelmingly passed language calling for an end to fossil fuel financing by the European Investment Bank and Export Credit Agencies.

“As governments debate how best to fight climate change, they continue to pour billions into the oil industry”, said Steve Kretzmann, Executive Director of Oil Change International.

“The World Bank, aid agencies, and other institutions have better things to do with their money than support wealthy oil companies. The sad fact is that Northern aid agencies are encouraging exactly the same industries that have caused climate change, while neglecting support for clean renewable energy. They are still funding more of the problem than the solution”.

The new report, called “Aiding Oil, Harming the Climate,” reveals that the U.S. is the #1 provider, with at least $15.6 in oil aid distributed. However, European countries collectively, provided $16.5 billion. Of the multilateral institutions, the World Bank Group is the largest, with about $8 billion, mostly in loans, since 2000.

In 2004, Dr. Emil Salim, the Eminent Person who headed up the World Bank’s Extractive Industries Review, wrote: “The World Bank Group should phase out investments in oil production by 2008 and devote its scarce resources to investments in renewable energy resource development,”

Max Christian, Advisor to the Ecuadorian Government in Bali at the Climate Convention’s 13th Conference of Parties, stated that “International financing is needed for developing countries who are oil exporters, but that financing is best directed to preserving cultural and bio-diversity, protecting ecological integrity and leaving oil in the ground.”

At the World Bank’s annual meetings several months ago, more than 200 groups from 56 countries signed the Global Call to End Oil Aid.

The database and report are available online at http://oilaid.priceofoil.org