By Mariela Jara
LIMA, Sep 28 2023 (IPS)
Nearly 700,000 people have migrated internally in Peru due to the effects of climate change. This mass displacement is a clear problem in this South American country, one of the most vulnerable to the global climate crisis due to its biodiversity, geography and 28 different types of climates.
“We recognize migration due to climate change as a very tangible issue that needs to be addressed,” Pablo Peña, a geographer who is coordinator of the Emergency and Humanitarian Assistance Unit of the International Organization for Migration (IOM) in Peru, told IPS.
In an interview with IPS at the UN agency’s headquarters in Lima, Peña reported that according to the international Internal Displacement Monitoring Center, the number of people displaced within Peru’s borders by disasters between 2008 and 2022 is estimated at 659,000, most of them floods related to climate disturbances."We recognize migration due to climate change as a very tangible issue that needs to be addressed." -- Pablo Peña
In this Andean country of 33 million inhabitants, there is a lack of specific and centralized data to determine the characteristics of migration caused by environmental and climate change factors.
Peña said that through a specific project, the IOM has collaborated with the Peruvian government in drafting an action plan aimed at preventing and addressing climate-related forced migration, on the basis of which a pilot project will begin in October to systematize information from different sources on displacement in order to incorporate the environmental and climate component.
“We aim to be able to define climate migrants and incorporate them into all regulations,” said the expert. The project, which includes gender, rights and intergenerational approaches, is being worked on with the Ministries of the Environment and of Women and Vulnerable Populations.
He added that this type of migration is multidimensional. “People can say that they left their homes in the Andes highlands because they had nothing to eat due to the loss of their crops, and that could be interpreted, superficially, as forming part of economic migration because they have no means of livelihood. But that cause can be associated with climatic variables,” Peña said.
In a 2022 report, the United Nations Food and Agriculture Organization (FAO) identified Peru as the country with the highest level of food insecurity in South America.
Pablo Peña, coordinator of the Emergency and Humanitarian Assistance Unit of the International Organization for Migration (IOM) in Peru, stands in front of the headquarters of this United Nations agency in Lima. He highlights the need to address the situation of internal migration driven by the impacts of climate change. CREDIT: Mariela Jara / IPS
The Central Reserve Bank, in charge of preserving monetary stability and managing international reserves, lowered in its September monthly report Peru’s economic growth projection to 0.9 percent for this year, partly due to the varied impacts of climate change on agriculture and fishing.
This would affect efforts to reduce the poverty rate, which stands at around 30 percent in the country, where seven out of every 10 workers work in the informal sector, and would drive up migration of the population in search of food and livelihoods.
“The World Bank estimates that by 2050 there will be more than 10 million climate migrants in Latin America,” said Peña.
The same multilateral institution, in its June publication Peru Strategic Actions Toward Water Security, points out that people without economic problems are 10 times more resistant than those living in poverty to climatic impacts such as floods and droughts, which are increasing at the national level.
The country is currently experiencing the Coastal El Niño climate phenomenon, which in March caused floods in northern cities and droughts in the south. The official National Service of Meteorology and Hydrology warned that in January 2024 it could converge with the El Niño Southern Oscillation (ENSO) global phenomenon, accentuating its impacts.
El Niño usually occurs in December, causing the sea temperature to rise and altering the rainfall pattern, which increases in the north of the country and decreases in the south.
The manager of Natural Resources of the Piura regional government, Juan Aguilar, described the vulnerability to climate change of this northern coastal region of Peru at a September meeting organized by the IOM in Lima. The official explained that the El Niño climate phenomenon has become more intense and frequent due to the effects of climate change, which aggravates its impacts on the population, such as severe flooding this year. CREDIT: Mariela Jara / IPS
Reluctance to migrate to safer areas
Piura, a northern coastal department with an estimated population of just over two million inhabitants, has been hit by every El Niño episode, including this year’s, which left more than 46,000 homes damaged, even in areas that had been rebuilt.
Juan Aguilar, manager of Natural Resources of the Piura regional government, maintains that the high vulnerability to ENSO is worsening with climate change and is affecting the population, communication routes and staple crops.
At an IOM workshop on Sept. 5 in Lima, the official stressed that Piura is caught up in both floods and droughts, in a complex context for the implementation of spending on prevention, adaptation and mitigation.
Aguilar spoke to IPS about the situation of people who, despite having lost their homes for climatic reasons, choose not to migrate, in what he considers to be a majority trend.
“People are not willing overall to move to safer areas, even during El Niño 2017 when there were initiatives to relocate them to other places; they prefer to wait for the phenomenon to pass and return to their homes,” he added.
View of the Rimac River as it passes through the municipality of Lurigancho-Chosica, in the Peruvian province of Lima. In this town, many families are still living in housing in areas at high risk, which is exacerbated during the rainy season that begins in December and has intensified due to climate change and the increased recurrence of the El Niño climate phenomenon. CREDIT: Mariela Jara / IPS
He explained that this attitude is due to the fact that they see the climatic events as recurrent. “They say, I already experienced this in such and such a year, and there is a resignation in the sense of saying that we are in a highly vulnerable area, it is what we have to live with, God and nature have put us in these conditions,” Aguilar said.
He acknowledged that with regard to this question, public policies have not made much progress. “For example after 2017 a law was passed to identify non-mitigable risk zones, and that has not been enforced despite the fact that it would help us to implement plans to relocate local residents to safer areas,” he added.
The regional official pointed out that “we do not have an experience in which the State says ‘I have already identified this area, there is so much housing available here for those who want to relocate’ , because the social cost would be so high.”
“We have not seen this, and the populace has the feeling that if they are going to start somewhere else, the place they abandon will be taken by someone else, and they say: ‘what is the point of me moving, if the others will be left here’,” Aguilar said.
Paulina Vílchez, 72, has always lived in the Peruvian municipality of Lurigancho-Chosica. Despite the fear every year that the Rimac River might flood and that mudslides could occur in one of the 21 ravines in the area, she has never thought of moving away. “I’m not going to go to an empty plot to start all over again, that’s why I’ve stayed. I leave everything in the hands of God,” she said. CREDIT: Mariela Jara / IPS
The fear of starting over
Some 40 km from the Peruvian capital, in Lurigancho-Chosica, one of the 43 municipalities of the province of Lima, the local population is getting nervous about the start of the rainy season in December, which threatens mudslides in some of its 21 ravines. The most notorious due to their catastrophic impact occurred in 1987, 2017, 2018 and March of this year.
Landslides, known in Peru by the Quechua indigenous term “huaycos”, have been part of the country’s history, due to the combination of the special characteristics of the rugged geography of the Andes highlands and the ENSO phenomenon.
In an IPS tour of the Chosica area of Pedregal, one of the areas vulnerable to landslides and mudslides due to the rains, there was concern in the municipality about the risks they face, but also a distrust of moving to a safer place to start over.
“I came here to Pedregal as a child when this was all fields where cotton and sugar cane were planted. I have been here for more than sixty years and we have progressed, we no longer live in shacks,” said 72-year-old Paulina Vílchez, who lives in a nicely painted two-story house built of cement and brick.
On the first floor she set up a bodega, which she manages herself, where she sells food and other products. She did not marry or have children, but she helped raise two nieces, with whom she still lives in a house that is the fruit of her parents’ and then her own efforts and which represents decades of hard work.
Vílchez admits that she would like to move to a place where she could be free of the fear that builds up every year. But she said it would have to be a house with the same conditions as the one she has managed to build with so much effort. “I’m not going to go to an empty plot to start all over again, that’s why I’ve stayed. I leave everything in the hands of God,” she told IPS.
Maribel Zavaleta’s home in the Peruvian municipality of Chosica is built of wood, near the Rimac River and just a meter from the train tracks. She arrived there in 1989, relocated after a mud, water and rock slide two years earlier in another part of the town. She constantly worries that another catastrophe will happen again, and says she would relocate if she were guaranteed safer land and materials to build a new house. CREDIT: Mariela Jara / IPS
Very close to the Rimac River and next to the railway tracks that shake her little wooden house each time the train passes by lives Maribel Zavaleta, 50, born in Chosica, and her family of two daughters, a son, and three granddaughters.
“I came here in 1989 with my mom, she was a survivor of the 1987 huayco, and we lived in tents until we were relocated here. But it’s not safe; in 2017 the river overflowed and the house was completely flooded,” she told IPS.
Zavaleta started her own family at the age of 21, but is now separated from her husband. Her eldest son lives with his girlfriend on the same property, and her older daughter, who works and helps support the household, has given her three granddaughters. The youngest of her daughters is 13 and attends a local municipal school.
“I work as a cleaner and what I earn is only enough to cover our basic needs,” she said. She added that if she were relocated again it would have to be to a plot of land with a title deed and materials to build her house, which is now made of wood and has a tin roof, while her plot of land is fenced off with metal sheets.
“I can’t afford to improve my little house or leave here. I would like the authorities to at least work to prevent the river from overflowing while we are here,” she said, pointing to the rocks left by the 2017 landslide that have not been removed.
Bukes Saliu, a forklift driver, is a Nigerian woman who challenging stereotypes. Credit: Promise Eze/IPS
By Promise Eze
LAGOS, Sep 28 2023 (IPS)
Bukes Saliu wakes up very early every workday to beat the gruesome Lagos traffic to head to a job quite unusual for a woman to engage in Nigeria. She is a forklift operator in one of the busy depots in the coastal city, a task traditionally meant for men in the West African country.
In a country where women are seen as second-class citizens and whose roles are expected to be confined to the kitchen, Saliu is not letting patriarchal norms put her in a box.
“People are always thrilled when I tell them what I do. Sometimes I get snide remarks from some men I work with, but I don’t allow that to get to me,” Saliu says.
In August 2022, her curiosity was piqued when she came across a post on WhatsApp from her friend featuring a woman confidently posed beside a forklift machine. That ignited her interest in the job. Soon after, she enrolled in training to become a skilled forklift operator.
“It was a change of career path for me. I used to be a project manager with a non-profit, but I left the job to be a forklift operator. The first day I started work, I was a bit afraid, but now I operate the machine like any other man would do. I believe that women should be allowed at the table because it brings different perspectives, ideas, and experiences,” she adds.
Patriarchy Lives in Nigeria
Discrimination against women has been a serious problem in Nigeria. Women still grapple with an array of challenges and are marginalized despite the Nigerian constitution providing for gender equality and nondiscrimination
Women face a heavier burden of violence, and different types of bias, which creates significant obstacles in their quest for gender equality. This is frequently caused by unfair laws, religious and cultural traditions, gender stereotypes, limited education opportunities, and the unequal impact of poverty on women.
Although the government has attempted to tackle these deep-rooted issues, the pace of progress remains sluggish. Women’s representation within politics and decision-making spheres remains poor. For example, out of a total of 15,307 candidates in the 2023 general elections, only 1,550 were women. Only three women were elected as senators as against nine in the last election, and only one woman emerged as a presidential candidate.
Women are often excluded from economic prospects. Within Nigeria’s populace exceeding 200 million, a mere 60.5 million people contribute to its labor force. Among this workforce, around 27.1 million women participate, a significant portion of whom find themselves involved in low-skilled employment. Nigeria’s position on the World Economic Forum’s Gender Gap Index is a lowly 123rd out of 156 nations.
Swimming Against the Tide
A limited number of women are challenging conventional gender norms for the purpose of livelihood, stepping into roles that are male dominated in Nigeria. However, this transition is often met with resistance and negative reactions.
In 2021, Iyeyemi Adediran gained widespread attention for her exceptional mastery of driving long-haul trucks for oil companies. However, despite her remarkable skill, the then 26-year-old shared that she faced derogatory remarks for daring to break gender norms associated with truck driving—an occupation traditionally considered male-dominated.
In 2015, Sandra Aguebor, Nigeria’s first female mechanic, gained widespread attention for her all-female garages across the country. However, she revealed that her mother initially did not support her ambitions, believing that fixing cars should only be done by men.
Faith Oyita, a shoemaker in Benue State, Nigeria, is not letting patriarchal norms stop her. Despite Aba, a growing men-led market in southeast Nigeria, dominating the shoemaking industry, Oyita has been determined to make a name for herself since 2015, even though she resides kilometers away. She says she has trained over 300 other people on how to make shoes.
“When I first started, I didn’t care about the challenges that came with shoemaking. I had a deep passion for it, and I wanted to beautify people’s legs. Even though it was a skill dominated by men, I was determined to do things differently. I knew that greatness doesn’t come from convenience. In the beginning, many people questioned why I chose shoemaking. Even the man who taught me was hesitant and doubted my potential. I was the only female among all his apprentices, and many assumed that I came because I wanted to date him. Despite all the negative remarks, I never gave up,” she tells IPS.
Patriarchy Came Through Colonialism
“A lot of what is happening today is not how we originally lived our lives as Nigerian women. Patriarchy actually entered our society during the colonial era. Before colonization, both men and women were able to do things without being restricted by gender. Historically, women were involved in trading goods and services, and they could even marry multiple wives for themselves.
“However, when the colonialists arrived, they distorted our culture and, using religion, promoted the idea that men held more power. We should strive to correct this narrative. It’s unfortunate that we have been socialized to believe that men should always be in leadership positions and that women should only be in a man’s home,” says Añuli Aniebo Ola-Olaniyi, Executive Director, HEIR Women Hub.
Speaking further, Ola-Olaniyi argues that women who want to break gender norms must have a change of mindset and be ready to face challenges.
“The country that colonized us has their women driving buses and flying planes. They have progressed from where they colonized us. But Nigeria has failed to empower its women. When a Nigerian woman does something that is traditionally seen as only for men, it is seen as a big accomplishment. However, she has always been capable of doing those things. It’s just that the opportunities were not available. I don’t even think it’s a switch in gender roles. I believe that women are simply starting to realize their potential,” she tells IPS.
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Volodymyr Zelenskyy, President of Ukraine, addresses the Security Council, 20 September 2023. Credit: UN Photo/Manuel Elías
By Medea Benjamin and Nicolas J. S. Davies
NEW YORK, Sep 28 2023 (IPS)
As it did last year, the 2023 United Nations General Assembly has been debating what role the United Nations and its members should play in the crisis in Ukraine.
The United States and its allies still insist that the UN Charter requires countries to take Ukraine’s side in the conflict, “for as long as it takes” to restore Ukraine’s pre-2014 internationally recognized borders.
They claim to be enforcing Article 2:4 of the UN Charter that states “All Members shall refrain in their international relations from the threat or use of force against the territorial integrity or political independence of any state, or in any other manner inconsistent with the Purposes of the United Nations.”
By their reasoning, Russia violated Article 2:4 by invading Ukraine, and that makes any compromise or negotiated settlement unconscionable, regardless of the consequences of prolonging the war.
Other countries have called for a peaceful diplomatic resolution of the conflict in Ukraine, based on the preceding article of the UN Charter, Article 2:3: “All Members shall settle their international disputes by peaceful means in such a manner that international peace and security, and justice, are not endangered.”
They also refer to the purposes of the UN, defined in Article 1:1, which include the “settlement of international disputes” by “peaceful means,” and they point to the dangers of escalation and nuclear war as an imperative for diplomacy to quickly end this war.
As the Amir of Qatar told the General Assembly, “A long-term truce has become the most looked-for aspiration by people in Europe and all over the world. We call on all parties to comply with the UN Charter and international law and resort to a radical peaceful solution based on these principles.”
This year, the General Assembly has also been focused on other facets of a world in crisis: the failure to tackle the climate catastrophe; the lack of progress on the Sustainable Development Goals that countries agreed to in 2000; a neocolonial economic system that still divides the world into rich and poor; and the desperate need for structural reform of a UN Security Council that has failed in its basic responsibility to keep the peace and prevent war.
One speaker after another highlighted the persistent problems related to U.S. and Western abuses of power: the occupation of Palestine; cruel, illegal U.S. sanctions against Cuba and many other countries; Western exploitation of Africa that has evolved from slavery to debt servitude and neocolonialism; and a global financial system that exacerbates extreme inequalities of wealth and power across the world.
Brazil, by tradition, gives the first speech at the General Assembly, and President Lula da Silva spoke eloquently about the crises facing the UN and the world. On Ukraine, he said: “The war in Ukraine exposes our collective inability to enforce the purposes and principles of the UN Charter. We do not underestimate the difficulties in achieving peace. But no solution will be lasting if it is not based on dialogue. I have reiterated that work needs to be done to create space for negotiations… The UN was born to be the home of understanding and dialogue. The international community must choose. On one hand, there is the expansion of conflicts, the furthering of inequalities and the erosion of the rule of law. On the other, the renewing of multilateral institutions dedicated to promoting peace.”
After a bumbling, incoherent speech by President Biden, Latin America again took the stage in the person of President Gustavo Petro of Colombia: “While the minutes that define life or death on our planet are ticking on,” Petro declared, “rather than halting this march of time and talking about how to defend life for the future, thanks to deepening knowledge, expand it to the universe, we decided to waste time killing each other”.
“We are not thinking about how to expand life to the stars, but rather how to end life on our own planet. We have devoted ourselves to war. We have been called to war. Latin America has been called upon to produce war machines, men, to go to the killing fields.
They’re forgetting that our countries have been invaded several times by the very same people who are now talking about combatting invasions. They’re forgetting that they invaded Iraq, Syria and Libya for oil. They’re forgetting that the same reasons they use to defend Zelenskyy are the very reasons that should be used to defend Palestine. They forget that to meet the Sustainable Development Goals, we must end all wars.
But they’re helping to wage one war in particular, because world powers see this suiting themselves in their game of thrones, in their hunger games.and they’re forgetting to bring an end to the other war because, for these powers, this did not suit them.
What is the difference between Ukraine and Palestine, I ask? Is it not time to bring an end to both wars, and other wars too, and make the most of the short time we have to build paths to save life on the planet?
I propose that the United Nations, as soon as possible, should hold two peace conferences, one on Ukraine, the other on Palestine, not because there are no other wars in the world – there are in my country – but because this would guide the way to making peace in all regions of the planet, because both of these, by themselves, could bring an end to hypocrisy as a political practice, because we could be sincere, a virtue without which we cannot be warriors for life itself.”
Petro was not the only leader who upheld the value of sincerity and assailed the hypocrisy of Western diplomacy. Prime Minister Ralph Gonsalves of St. Vincent and the Grenadines cut to the chase: “Let us clear certain ideational cobwebs from our brains. It is, for example, wholly unhelpful to frame the central contradictions of our troubled times as revolving around a struggle between democracies and autocracies. St. Vincent and the Grenadines, a strong liberal democracy, rejects this wrong-headed thesis. It is evident to all right-thinking persons, devoid of self-serving hypocrisy, that the struggle today between the dominant powers is centered upon the control, ownership, and distribution of the world’s resources.”
On the war in Ukraine, Gonsalves was equally blunt. “…War and conflict rage senselessly across the globe; in at least one case, Ukraine, the principal adversaries — the North Atlantic Treaty Organisation (NATO) and Russia — may unwittingly open the gates to a nuclear Armageddon… Russia, NATO, and Ukraine should embrace peace, not war and conflict, even if peace has to rest upon a mutually agreed, settled condition of dissatisfaction.”
The Western position on Ukraine was also on full display. However, at least three NATO members (Bulgaria, Hungary and Spain) coupled their denunciations of Russian aggression with pleas for peace. Katalin Novak, the President of Hungary, said: “…We want peace, in our country, in Ukraine, in Europe, in the world. Peace and the security that comes with it. There is no alternative to peace. The killing, the terrible destruction, must stop as soon as possible. War is never the solution. We know that peace is only realistically attainable when at least one side sees the time for negotiations as having come. We cannot decide for Ukrainians about how much they are prepared to sacrifice, but we have a duty to represent our own nation’s desire for peace. And we must do all we can to avoid an escalation of the war.”
Even with wars, drought, debt and poverty afflicting their own continent, at least 17 African leaders took time during their General Assembly speeches to call for peace in Ukraine. Some voiced their support for the African Peace Initiative, while others contrasted the West’s commitments and expenditures for the war in Ukraine with its endemic neglect of Africa’s problems. President Joao Lourenço of Angola clearly explained why, as Africa rises up to reject neocolonialism and build its own future, peace in Ukraine remains a vital interest for Africa and people everywhere:
“In Europe, the war between Russia and Ukraine deserves our full attention to the urgent need to put an immediate end to it, given the levels of human and material destruction there, the risk of an escalation into a major conflict on a global scale and the impact of its harmful effects on energy and food security. All the evidence tells us that it is unlikely that there will be winners and losers on the battlefield, which is why the parties involved should be encouraged to prioritize dialogue and diplomacy as soon as possible, to establish a ceasefire and to negotiate a lasting peace not only for the warring countries, but which will guarantee Europe’s security and contribute to world peace and security.”
Altogether, leaders from at least 50 countries spoke up for peace in Ukraine at the 2023 UN General Assembly. In his closing statement, Dennis Francis, the Trinidadian president of this year’s UN General Assembly, noted,
“Of the topics raised during the High-Level Week, few were as frequent, consistent, or as charged as that of the Ukraine War. The international community is clear that political independence, sovereignty, and territorial integrity must be respected, and violence must end.”
You can find all 50 statements at this link on the CODEPINK website: https://www.codepink.org/unurkaine23
Medea Benjamin and Nicolas J. S. Davies are the authors of War in Ukraine: Making Sense of a Senseless Conflict, published by OR Books in November 2022.
Medea Benjamin is the cofounder of CODEPINK for Peace, and the author of several books, including Inside Iran: The Real History and Politics of the Islamic Republic of Iran.
Nicolas J. S. Davies is an independent journalist, a researcher for CODEPINK and the author of Blood on Our Hands: The American Invasion and Destruction of Iraq.
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During UN-organized beach and buffer zone clean-ups, though, youth from both the north and south of Cyprus work side-by-side with peacekeepers. Credit: UNFICYP
By Abigail Van Neely
UNITED NATIONS, Sep 27 2023 (IPS)
Along the 180-kilometer-long buffer zone separating the north and south of Cyprus, there is a surprising sign of unity: recycled ammunition boxes no longer hold bullets. They are home to baby birds.
Over the past five years, United Nations police have collaborated with local authorities to place 100 boxes throughout the uninhabited border area. An alternative to harmful pesticides, the man-made nests attract barn owls who prey on rodents. By supporting these kinds of projects, United Nations peacekeepers in Cyprus are helping to facilitate conservation efforts that impact communities on both sides of the island’s divide.
The UN peacekeeping mission in Cyprus (UNFICYP) is one of the world’s oldest active missions. Following violence between Greek and Turkish Cypriots in the 1960s, Cyprus was split in 1974 into a northern third run by a Turkish Cypriot government and a southern two-thirds run by an internationally recognized Greek Cypriot government. UN forces monitor the dividing militarized buffer zone.
UNFICYP peacekeepers have a double mission, environmental conservation, and ensuring peace between north and south Cyprus. Credit: UNFICYP
Fresh Tensions Persist
In August, UN peacekeepers were seriously injured by Turkish Cypriot security forces during a controversy over unauthorized construction work in an UN-controlled area, Reuters reports. According to the BBC, reunification talks remain slow.
Still, peacekeepers are trying to bring the two communities together through a shared interest in protecting the environment.
A small Mediterranean island, Cyprus is an important breeding, nesting, and foraging area for many animals. While activists say sensitivity to the importance of sustainability has increased, climate change is a greater threat than ever throughout Cyprus. Development from wealthy investors has fragmented habitats and led to the loss of natural areas.
Tourism has exacerbated water scarcity. Record high temperatures have aggravated social inequities for people who cannot afford air conditioning. Wildfires across the island have threatened to trigger minefields in the buffer zone. When everyone breathes the same air, air pollution is everyone’s problem.
“Environment doesn’t really know boundaries or borders and different nationalities,” Cyprus advocate Meryem Ozkan says. “But how we are acting, protecting, and preserving everywhere all around the island is affecting us all living on it.”
UNFICYP Senior Police Advisor Satu Koivu strives to practice environmentally responsive policing in line with UN environmental management mandates. Patrols of the buffer zone have reduced illegal waste dumping and helped curb the long tradition of bird poaching along the island’s famous bird migration routes.
Meanwhile, mission-level initiatives include installing solar panels, driving hybrid vehicles, and using reusable water bottles.
Ultimately, Koivu says supporting local people is her priority. Partnerships with local authorities, civil society organizations, and community members are essential. Communication and outreach are critical tools, especially for bringing people together.
Many kids would cringe at the thought of enduring an hour-long bus ride on a hot summer day just to spend hours collecting trash. During UN-organized beach and buffer zone clean-ups, though, youth from both the North and South of Cyprus learn to appreciate the importance of their conservation efforts while working side by side with uniformed peacekeepers. The explicit goal is to discuss environmental solutions. Peacebuilding is a happy bonus.
Ozkan, the current operations manager for the North Cyprus Society for the Protection of Turtles (SPOT), collaborated with the UN on a couple of beach clean-ups. SPOT’s sea turtle conservation project centers aim to raise awareness through firsthand experiences. “If people don’t love what you love and feel the need to protect, they will not want to put the effort in,” Ozkan said.
Ozkan sees the UN’s open community events as important platforms for NGOs from both sides to communicate on equal footing without misunderstanding. Ozkan says engagement between organizations in the north and south has become more common in the last decade. Recently, SPOT partnered with NGOs around Cyprus to collect data about when sea turtles are trapped in fishing nets and engage fishermen through outreach activities.
UNFICYP Senior Police Advisor Satu Koivu strives to practice environmentally responsive policing in line with UN environmental management mandates. Here is admires a young barn owl; the population has been introduced into the buffer zone between north and south Cyprus. Credit: UNFICYP
Youth Activists for Climate Change
Youth activists who helped coordinate Cyprus’ second Local Youth Conference on Climate Change say the UN has helped them connect with each other and a wider audience. At one UN event, their team presented a draft policy proposal to install solar panels in the buffer zone to Cyprus government officials. They welcome not only the voices of both Greek and Turkish Cypriots but the perspectives of other minority and migrant communities as well.
“There is a huge need for environmental action across the aisle at the moment,” Victoras Pallikaras, a former UNFICYP Champion for Environmental Peace, stressed. Different governmental regulations on either side of the island can make coordination and compliance a challenge. While the south follows and receives support from the European Union’s environmental directives, Pallikaras notes, the north has different policies.
“The UN is kind of a pressure for both communities to bring them back together,” Pallikaras said. Even if it’s imperfect, “the most important thing is that the UN is making a huge effort.”
At first, Nicolaos “Nikos” Kassinis, one of the Cyprus Game and Fauna Service staff responsible for coordinating the barn owl nesting project, found it strange to be escorted by foreign UN officers in his own country. Over the past years, they’ve developed a “great trust.”
“Without these people, it will be impossible to do work in the buffer zone,” he now says.
“Wildlife doesn’t recognize fences and divides that are on the map,” the conservationist emphasizes. In the future, he would like to see the barn owl project expand to include the Turkish Cypriot side of the island — pesticide residue has been found in birds of prey that travel across Cyprus.
Koivu hopes that her environmental work will help the public also associate police with positive initiatives.
“As an individual, I cannot change the world. But I can start the ball rolling, and then together, we can make this difference and impact. So, I try to be positive,” she says. Less serious, her crisp blue uniform crinkles with her grin when she emphatically talks about the magic of seeing a new owlet.
“They are so cute, these babies!”
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Wildfires under dry conditions have been cited as contributing to the El Nino phenomenon. Credit: Ignatius Banda/IPS
By Ignatius Banda
BULAWAYO, ZIMBABWE, Sep 27 2023 (IPS)
Zimbabwe is riding a wave of food security assurances after what officials said was last year’s bumper grain harvest, but recent El Niño forecasts could test the country’s agriculture production ambitions.
The devastating phenomenon could further bring the spotlight on Zimbabwe’s disaster preparedness as the country has, over the years, received early warnings of impending climate-induced humanitarian crises but found wanting.
While the landlocked southern African country has invested heavily in farm mechanisation and irrigation, there are concerns that the looming El Niño could test if these interventions will help sustain food production at a time when aid agencies say more people will require assistance into the coming year.
During the 2022/23 season, Zimbabwe recorded its highest grain harvest in years, with the agriculture ministry declaring that the country will not be importing any food in the short term.
However, fresh climate uncertainty concerns have brought back worries about the country’s ability to feed itself, where thousands of smallholder farmers – the primary growers of the staple maize – rely on rain for their agriculture activities.
According to the Food and Agriculture Organisation (FAO), up to 70 percent of Zimbabwe’s population subsists on rainfed agriculture, effectively exposing the vulnerability of food security as El Niño looms.
In a July update, FAO’s Global Information and Early Warning Systems listed Zimbabwe as one of the southern African countries where the UN agency had prepared what it called “anticipatory protocols for drought” ahead of El Niño.
“El Niño is likely to result in a mixed start to the 2023/24 rainy season in Zimbabwe. Precipitation from December to March, during the height of the rainy season, is likely to be below average, negatively impacting the 2023/24 agricultural season,” the Famine Early Warning Systems Network (FEWS-NET) said in a June update.
Climate ministry officials say El Niño has previously affected agricultural production, noting that more remains to be done to counter its devastating effects.
“The combination of drought and water scarcity results in decreased agricultural productivity, leading to reduced food production, and this subsequently impacts food security and increases food prices,” said Washington Zhakata, a director of the Environment Ministry’s Climate Change Management Department.
He noted that the country could still have more to worry about in the aftermath of El Niño.
“El Niño conditions create conducive conditions for the outbreak of crop diseases and pests. When the crops are weakened, they become more susceptible to infestations and diseases, further affecting agricultural yields,” Zhakata told IPS.
While Zimbabwe has committed to building a multi-billion-dollar agriculture sector, climate uncertainty could derail those plans as the country has been slow in setting up infrastructure such as irrigation and new dams.
According to Zhakata, countermeasures such as escalated investment in the sector could cushion the country against future climate shocks.
“Investment in irrigation infrastructure, such as dams, weirs, boreholes and water conveyancing systems to where the water will be required, to provide alternative water sources during drought periods, enhance farmers’ access to irrigation systems, and promote efficient water management practices,” Zhakata said.
This comes as the World Food Programme (WFP) says more people will require food assistance during the traditional lean season early next year, already worsened by El Niño.
“Nutritional vulnerability is highest at the peak of the lean season (January – March) when food stocks from the previous growing season run low and prices in the market increase,” said Mary Gallar, WFP-Zimbabwe spokesperson.
“Recognising the challenges experienced by communities in some poor performing areas, it is expected that a large number of people will rely on food assistance at the beginning of next year,” Gallar said.
According to FAO, El Niño last hit Zimbabwe in 2016 and left 40 million people in southern Africa needing food assistance.
It is yet to be seen what preparations the country’s grain reserves will be enough in the event of another El Niño-induced drought.
According to agencies, the 2016 El Niño “severely reduced seasonal rains and higher-than-normal temperatures linked to El Niño caused an anticipated 12 percent drop in aggregate cereal production.”
Amid such anticipated reduced food production, Zimbabwe’s 2023 bumper grain harvest will provide a litmus test of the country’s grain statistics, which some analysts have questioned.
According to climate ministry officials, Zimbabwe is one of many countries bearing the brunt of climate uncertainty yet to benefit from loss and damage pledges by rich nations, further compounding efforts to address climate-related emergencies adequately.
“The 27th Conference of Parties to the United Nations Framework Convention on Climate Change (COP27) acknowledged that existing funding arrangements fall short of responding to current and future impacts of climate change and are not sufficient to addressing loss and damage associated with the adverse impacts of climate change,” Zhakata said.
“So far, no Parties have benefitted from this facility; it is a prerequisite to have clearly defined operational modalities and initial resources being deposited into the fund before it can be accessed. It is expected that the modalities will be agreed in December to pave the way for the operationalisation of the Fund,” he added.
For now, as potentially devastating El Niño drought approaches, smallholders could find themselves none the wiser as they count their losses in the absence of measures to mitigate the impact of climate change.
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Credit: Ministry of Public Works and Public Housing, Republic of Indonesia
By Omar Sidique, Diani Sadiawati and Diandra Pratami
BANGKOK, Thailand, Sep 27 2023 (IPS)
Many nations are engaged in ambitious urban planning endeavors and the creation of new capital cities. Nusantara, Indonesia, is the latest in a series of modern cities that have sprung up across Asia.
The government aims to create a model capital city based on the principles of liveability and green urban development on the island of Borneo.
Indonesia seeks to relocate its capital due to flooding, land subsidence, overpopulation and congestion in Jakarta, located on the island of Java, where 60 per cent of the country’s population of close to 280 million lives.
Nusantara will also play a role in rebalancing the country’s economy, and redistributing economic growth outside Java. But how can the government get such a complex endeavor right?
In this article, we explore how planners of Nusantara are leveraging a UN-supported mechanism, called the Voluntary Local Review (VLR), to promote sustainability and uphold human rights. VLRs are typically performed by authorities of existing subnational administrative areas such as provinces and cities.
Nusantara will be the first VLR for a new city ever undertaken – in order for authorities to integrate sustainability actions and key principles such as leaving no one behind already during the development stage.
Valuable lessons from other new Asian cities
Credit: Asian Development Bank
Seven key takeaways for Nusantara’s way forward
Nusantara is learning from these examples by leveraging sustainability in its master planning and closely working with ESCAP, the UN Country Team in Indonesia and the Asian Development Bank to prepare a baseline VLR report as a tool for fostering inclusive, sustainable and rights-based development.
While significant attention is focused on Nusantara, it’s clear that relocating administrative functions may not address all social and environmental problems in Jakarta, especially for those most vulnerable.
The development of Nusantara has the potential to help Jakarta address its longstanding problems by relieving population pressure, improving infrastructure and setting an example for sustainable urban development. However, the success of this endeavor will depend on careful planning, infrastructure investment, and effective governance.
Omar Sidique is Economic Affairs Officer, UN Economic and Social Commissions for Asia and the Pacific; Diani Sadiawati is Special Staff to the Head, Nusantara Capital City Authority, Government of Indonesia; and Diandra Pratami is Development Coordination Officer, UN Resident Coordinator’s Office, Indonesia
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By Jomo Kwame Sundaram
KUALA LUMPUR, Malaysia, Sep 27 2023 (IPS)
In recent years, public-private partnerships (PPPs) have spread rapidly. While usually profitable for the private partners, PPPs have generally not served the longer-term public interest.
PPPs as miracle all-purpose solution
As Eurodad has shown, PPP financing has grown in recent years, particularly in the Sustainable Development Goals (SDGs) funding discourses. Adopted by the UN in September 2015, the SDGs endorsed PPP financing.
Jomo Kwame Sundaram
Earlier, the mid-2015 Third UN Conference on Financing for Development in Addis Ababa had failed to ensure adequate financing. This was mainly due to rich nations opposing a UN-led international tax cooperation initiative.Instead, PPPs were strongly endorsed in the 2015 Addis Ababa Action Agenda. Weeks later, SDG17 referred to PPPs as ‘means of implementation’. This all sought to “encourage and promote effective public, public-private and civil society partnerships”.
PPPs have been promoted as a means to finance and deliver infrastructure, social services and, increasingly, climate-related projects. Advocates claimed PPPs would also help overcome other problems besides funding. PPPs, they claimed, would help improve project selection, planning, implementation and maintenance.
PPP promotion
Some advocates even claim only the private sector can deliver high-quality investment and efficiency in infrastructure and social service delivery. Private financing reduces budget-constrained governments’ need to raise funds upfront to finance, develop and manage projects.
Increased private financing supposedly also overcomes public sector incapacity to deliver high-quality infrastructure and public services. Undoubtedly, many government capacities have been diminished by decades of structural adjustment, austerity and less public finance.
This has been worsened by rich countries’ unmet commitments to contribute 0.7% of national income as official development assistance (ODA) on concessional terms. The global North has also been unwilling to effectively stem illicit financial outflows, e.g., due to tax dodging.
PPP promotion has involved many means, media and institutions, including ‘donor’ agencies, multilateral development banks (MDBs), UN agencies, international consultants, transnational accounting firms, and the World Economic Forum (WEF).
The World Bank has long promoted private financial investments in development, as well as ‘blended finance’ and PPPs more recently. In 2022, the influential WEF even proclaimed PPPs as essential for pandemic recovery.
Promoting private finance
Such promotion of private finance has implications far beyond the actually modest amount of funds raised through ‘blended finance’ and PPPs. Almost every project so funded is touted as proof that private finance should be privileged, including by guaranteeing returns using public finance.
The World Bank and other MDBs are devoting considerable effort to advise governments on the use of PPPs. By contrast, they have not put comparable efforts into improving the quality and effectiveness of publicly financed infrastructure and social services.
Over the years, the World Bank Group has produced different tools – including model language for PPP contracts, which favour private sector interests – often to the detriment of the public partner, ultimately governments in need of financing.
Regional development banks – such as the Asian Development Bank, the African Development Bank and the Inter-American Development Bank – have strategic frameworks, networks and dedicated offices to support countries implementing PPPs.
National PPP promotion
PPP advocacy has led to changes in laws, regulatory frameworks and policy environments at international, national and local levels. Developing countries have also started including PPPs – to scale up infrastructure and public service provision – in national development plans.
Many developing countries have enacted laws enabling PPPs and set up ‘PPP Units’ to implement PPP projects. The World Bank, International Monetary Fund (IMF) and regional development banks work closely with private partners to provide policy guidance advising governments on how to best enable PPPs.
All this has transformed policy formulation for public service provision to attract private investors – an agenda Daniela Gabor dubs the ‘Wall Street Consensus’. This implies “an elaborate effort to reorganize development interventions around partnerships with global finance”.
PPPs have not delivered
But actual experiences have not confirmed this favourable impression promoted by PPP advocates. Instead, PPPs have become a major cause for concern. Reliable data on international PPP trends are hard to find. Also, different PPP definitions and terminology have confused reporting.
The World Bank’s Private Participation in Infrastructure Projects Database reports on economic infrastructure – such as for energy, transport, water and sewerage – in 137 low- and middle-income countries.
The Covid-19 pandemic undoubtedly disrupted PPP planning, preparation and procurement. But even the World Bank admits that delays and cancellations were not only due to Covid-19 as the pandemic exposed projects already in trouble for other reasons.
Nonetheless, PPPs’ financial impacts to date have been small, as the public sector continues to dominate. But little private investment – including PPPs – goes to low-income countries. Most such projects are concentrated in a few countries.
PPPs tend to be found in countries with large and developed markets allowing faster cost recovery and more secure revenues. This implies market ‘cherry-picking’ – a selection bias – with private investments going to more affluent urban areas rather than to the needy.
The major setbacks to both the SDGs and climate progress in the last decade are not only due to financing. But they are more than enough to underscore that recent reliance on blended finance and PPPs has worsened, rather than helped the situation. The empire of private finance has no clothes!
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The state-owned Petróleos Mexicanos (Pemex) oil company is completing its seventh refinery on a 600-hectare site at Dos Bocas in the municipality of Paraíso, in the southeastern state of Tabasco. The plant will process some 290,000 barrels of fuels per day when it reaches full capacity. CREDIT: Erik Contreras-Gerardo Morales / IPS
By Emilio Godoy
PARAÍSO, México, Sep 26 2023 (IPS)
At the entrance to the municipality of Paraíso, in the southeastern Mexican state of Tabasco, there is a traffic circle that displays three things that are emblematic of the area: crabs, pelicans and mangroves.
But the monument lacks another element that has been vital to the region: oil, which has damaged the other three symbols through pollution. Marine animals have been affected by the oil and the mangroves have almost been cut down in a territory that had ample reserves of crude oil.
Despite the fading bonanza, the Mexican government decided to build the Olmeca refinery in the industrial port of Dos Bocas, in Paraíso, to refine some 290,000 barrels per day of oil from the Gulf of Mexico and thus reduce gasoline imports.“Their commitments are not credible. It is said there is no room for new fossil fuel projects, but the banks continue to support oil companies, like Pemex." -- Louis-Maxence Delaporte
It will be the seventh installation of the National Refining System in the country, in a port area that already has a crude oil shipping and export center of the state-owned oil giant Petróleos Mexicanos (Pemex), which controls the exploitation, refining, distribution and commercialization of hydrocarbons in the country.
Construction of the new infrastructure on an area of 600 hectares began in 2019, and although it was officially opened in 2022, the work has not been completed and it is expected to be fully operational in 2024.
But the plant has already provided revenue for the local economy, in the form of rents, transportation and food. However, there are also fears about its impact on a city of more than 96,000 inhabitants.
Genaro, a cab driver who preferred not to give his last name and is married with three children, said there is a sensation of risk. “We know what has happened in other places where there are refineries, with all the pollution. Besides, accidents occur,” he told IPS.
Near the plant is the Lázaro Cárdenas neighborhood, home to hundreds of people and named after the president who nationalized the oil and electric industry in 1936.
There is an uneasy feeling among the local population. Irasema Lozano, a 36-year-old teacher who is a married mother of two, is one of the residents who is apprehensive about “the newcomer” to the city.
“Look around, there are houses, schools, stores. The government says it is a modern plant and that there is no danger, but we don’t feel safe with this huge plant,” she said.
Cab driver Genaro owns a house in the area, which he rents out. But he is now seriously thinking of selling it.
Construction of the plant has altered the life of the sprawling city around Dos Bocas. The “orange people”, referring to the color of the uniforms worn by everyone who works at the facility, are a permanent reminder of the changes as they move around town.
Talking about oil in Tabasco is a delicate matter, since the state is used to living with the exploitation of a light, low-sulfur, cheap and easy-to-extract hydrocarbon. It is also the home state of President Andrés Manuel López Obrador, a staunch defender of fossil fuels.
Pemex has financed the Olmeca megaproject with public funds, through its subsidiary Pemex Transformación Industrial. Its subsidiary PTI Infraestructura y Desarrollo has overseen construction.
The project has already had a high cost overrun, as the initial investment was estimated at seven billion dollars, a figure that has climbed to 18 billion dollars, according to the latest available data.
On this occasion, PTI ID has not turned to the international market to finance the work, according to the response to a public information access request from IPS.
The Olmeca refinery has a cost overrun, escalating from a planned initial investment of seven billion dollars to 18 billion dollars. The Mexican government expects the plant, located in Dos Bocas, in the southeastern municipality of Paraíso, to be fully operational by 2024. CREDIT: Erik Contreras-Gerardo Morales / IPS
The support of international banks
Traditionally, Pemex has depended on financial flows from international private banks. Between 2016 and 2022, 17 institutions gave nearly 61.5 billion dollars to the state-owned oil company, according to annual reports under the heading of “Banking on Climate Chaos” produced by a group of NGOs.
The British bank HSBC was the main financial backer of Pemex during this period, contributing 7.6 billion dollars, followed by the U.S.-based Citi (6.9 billion) and JP Morgan Chase (6.0 billion).
Pemex’s data gives a broader picture, as it shows more players in its lending field. Through direct loans, bond issuance, revolving credits (with automatic renewals) and project financing, 16 financial institutions have granted it 78.9 billion dollars since 2015.
In doing so, the international markets allow Pemex to obtain money for its operations and development, but in exchange they have turned it into the oil company with the highest debt in the world, some 100 billion dollars, which poses a great threat to Pemex and, by extension, to the country.
The main mechanism used is the insurance coverage or underwriting of Pemex’s financial operations by charging a commission.
Maaike Beenes, leader of banking and climate campaigns at the non-governmental BankTrack, told IPS that the large flow of financing means that banks feel confident that Pemex can repay the debt.
“Apparently it is because they think there are guarantees because it is a state-owned company. There is a lot of financing for the expansion of fossil fuel activities,” she said from the Dutch city of Amsterdam.
In 2020, Mexico was the 13th largest oil producer in the world and 19th largest gas producer. In terms of proven crude oil reserves, it ranked 20th and 41st respectively, according to Pemex data.
Two flares burn gas in the Nuevo Torno Largo neighborhood, in the municipality of Paraíso, in the vicinity of the Olmeca refinery. The southeastern state of Tabasco, on the coast of the Gulf of Mexico, has suffered the effects of pollution generated by oil production for more than 50 years through spills, contaminating gases, and water, air and soil pollution. CREDIT: Erik Contreras-Gerardo Morales / IPS
Fueling the crisis
By raising Pemex’s debt rating, the international banks risk their own voluntary climate targets for greenhouse gas (GHG) emission reductions, since the Mexican company’s GHG emission reduction targets are low.
For example, HSBC aims to achieve zero net emissions – where neutralized emissions equal those released into the atmosphere – in its operations and supply chain by 2030 and in its financing portfolio by 2050.
The bank says it is working with its clients to help them reduce their emissions. Its energy policy states that it will not finance new oil and gas fields.
But HSBC’s net zero goal has some gaps. According to the international Net Zero Tracker platform, its strategy lacks a detailed plan to achieve it, and has no reference on equity investment and no specification on formal accountability for monitoring progress, even though it covers Scope 1 (A1), 2 and 3 emissions.
A1 emissions come directly from sources under the polluter’s control, A2 emissions are indirect emissions from purchased energy, and A3 emissions are those originating in the final use of energy, not covered in A1 and A2, according to the Greenhouse Gas Protocol standard, the most widely used in the world.
By 2022, Citi committed to achieving a 29 percent absolute reduction in emissions for the power sector and a 63 percent reduction in the intensity of its portfolio pollution for the electricity sector by 2030, addressing A1, A2 and A3 levels.
In this regard, Net Zero Tracker says the bank does not have a complete detailed plan for these decreases and makes no reference to investment in fossil fuel companies.
Another major player, JP Morgan Chase, has a target of a 69 percent reduction in the carbon intensity of power generation, which accounts for most of the sector’s climate impact, by 2030.
In the oil and gas segment, the company aims for a 35 percent decrease in operational carbon intensity, as well as a 15 percent drop in end-use energy carbon intensity for the same year.
But its net zero targets are in doubt, as Net Zero Tracker points out that they have shortcomings, such as a complete detailed plan, and no reference to equity investment and only partial coverage of A3.
Louis-Maxence Delaporte, fossil-free finance campaigner at the non-governmental Reclaim Finance, said that international financing for companies like Pemex is problematic as it is not aligned with the 2015 Paris climate change agreement, which sets out to keep global warming below 1.5°C.
“By not meeting these targets there is only greenwashing, like net zero. Their commitments are not credible. It is said there is no room for new fossil fuel projects, but the banks continue to support oil companies, like Pemex,” she told IPS from Paris.
Sandra Guzman, director general of the Climate Finance Group for Latin America and the Caribbean, says it is hypocritical for the banks to talk about the Paris Agreement, while continuing to invest in fossil fuels.
“In Mexico there are perverse incentives because the country depends on extractive activities. There is a vicious circle, as these activities demand a greater share of the public budget and the banks channel money into them,” she told IPS from London.
A photo taken at the entrance to the Olmeca refinery, which the Mexican government expects to start up by the end of the year and to be fully operational in 2024. The plant is located next to the Lázaro Cárdenas neighborhood which is home to hundreds of people, in the Paraíso municipality of the southeastern state of Tabasco. CREDIT: Emilio Godoy / IPS
Dirty money
Pollution from Pemex’s activities has grown since 2018, a reality to which its financiers turn a blind eye.
In 2019, the Mexican oil company released 48 million tons of carbon dioxide (CO2) equivalent into the atmosphere, an increase of 3.3 percent, compared to 2018 levels, according to the report that Pemex sent to the Securities and Exchange Commission, a requirement for the company to sell bonds in the U.S. market.
In 2020, that pollution increased to 54 million tons, a rise of 12.5 percent, and the following year, to 70.5 million, an increase of 7.1 percent.
The main drivers of these increases have been the expansion of exploration, production and refining activities, plus drilling and flaring.
As of October 2022, Pemex was not in compliance with the 10-point framework of Climate Action + 100, a platform dedicated to measuring companies’ approach to the Paris Agreement goals. These aspects are related to short- and long-term reduction targets (2025 and 2050), decarbonization strategy and climate policies.
Therefore, the oil company, the eighth-largest global polluter as of 2017, according to the ranking of the non-governmental U.S. Climate Accountability Institute, is in breach of the Paris Agreement, adopted in 2015 and in force since 2021.
This also makes Mexico a country in non-compliance, as Pemex accounts for 10 percent of its GHG emissions.
Pemex has projected the reduction of pollution from its oil and gas production and extraction from 22.9 tons per 1000 barrels of crude oil equivalent in 2021 to 21.5 in 2025. For oil refining, the target is 39.6 tons per 1000 barrels in 2035, compared to just under 45.2 tons in 2021.
Delaporte criticized these targets as weak and insufficient, as they address only exploration and production (A1) emissions and leave out A2 and A3, the latter being the most polluting.
The Olmeca refinery is located in a coastal area of southeastern Mexico prone to flooding and exposed to rising sea levels due to increasing temperatures, one of the consequences of burning fossil fuels. CREDIT: Erik Contreras-Gerardo Morales / IPS
The national buttress
Another facet of the financial movement is related to national development banks, which have been pushing fossil fuel expansion without respecting their own social and environmental safeguards.
What Pemex has not received from international banks, the National Bank of Foreign Trade (Bancomext), the National Bank of Public Works and Services (Banobras) and Nacional Financiera (Nafin) have provided: hundreds of millions of dollars since 2018.
Since 2019, Bancomext has delivered 895 million dollars to the oil and gas industry, including Pemex, although the specific amount that went to the company itself is not public knowledge.
Banobras has been a great support for the oil company. In 2021, it provided over 1.1 billion dollars for the total acquisition of the Deer Park refinery in the U.S. state of Texas, of which Pemex already owned half and Shell the other 50 percent.
In addition, the bank shelled out 299 million dollars for the renovation of the Miguel Hidalgo refinery in the central state of Hidalgo.
Nafin lent Pemex 200 million dollars to upgrade the plant in 2021.
One phenomenon is the participation of the National Infrastructure Fund (Fonadin), which until now had never financed the fossil fuel sector. Last year, the fund contributed 346 million dollars for the renovation of diesel and gasoline processing technology at the Hidalgo refinery and at the Antonio M. Amor refinery, located in the central state of Guanajuato.
The latest operation involves 2.5 billion dollars in financing for the acquisition of the 13 production plants owned in the country by the Spanish company Iberdrola, 12 gas plants and one wind farm, in what has been described as part of “a new nationalization process.”
This maneuver also shows that international banks are still interested in financing fossil fuels, as the Spanish banks BBVA and Santander, as well as the U.S. Bank of America, have expressed a willingness to provide financing for the already agreed acquisition.
Climate activists stress that Mexican development banks have had social and environmental standards in place since 2017, but argue that they have been reluctant to apply them when it comes to Pemex.
Banobras has no safeguards assessments with respect to oil and gas projects, according to responses to information requests submitted by IPS. The same applied to Nafin, which did not carry them out in 2022 and 2023. The bank conducted one in 2021, classified as a bank secret. Bancomext also keeps information on this matter classified.
In the municipality of Paraíso, when the refinery begins to fully operate sometime in 2024, the pace will slow down, contrary to what the government wants. “We hope it will be profitable because it has cost a lot. And we hope nothing serious happens,” said Lozano, the teacher.
Beenes said Mexican and foreign banks should respect the Paris Agreement and abandon fossil fuels.
“State-owned banks can offer guarantees or insurance for credits. That is worrying, it is a problem for the transition. We are asking them to support the transition with specific investment conditions. It is in their best interest to stay away from fossil fuels, because they run the risk of having stranded assets in their portfolios,” she said.
The expert believes that banks are aware of the need for change, but the question is how fast they can do it.
Delaporte said development banks should finance green and non-oil companies.
“The change must be global, including commercial banks, development banks and hedge funds. Shareholders should ask Pemex not to build more facilities. If it refuses, they should divest and put the money into renewable companies,” she said.
Guzman, for her part, warned that if the current trend continues, it will be difficult for Mexico not only to meet its own climate targets, but also its contribution to the overall goal of keeping the global climate increase down to 1.5 degrees Celsius.
“There is talk of the need to continue mobilizing financing through national development banks for climate change. They should take advantage of this to allow the channeling and mobilization of funds” for the energy transition, she said.
IPS produced this article with support from The Sunrise Project.