In this letter to the World Bank Group, International Finance Corporation (IFC), and Multilateral Investment Guarantee Agency (MIGA), a group of civil society groups (Urgewald, Recourse, Power Shift Africa, Africa Change Lab, Alternative Law Collective (ALC), MENAFem Movement for Economic, Development and Ecological Justice, Centre for Financial Accountability (India), Sinergia Animal, Association for Farmers Rights Defense (AFRD) and Alliance Sud – raises concerns about the proposed sustainability framework, considered too weak on climate change and greenhouse gas (GHG) emissions.
Key recommendations
- The current “Good International Industry Practice” (GIIP) standard is inadequate and should be replaced with a stricter “best available science” standard for assessing and reducing emissions.
- IFC and MIGA should require full accounting of all emissions, including indirect emissions from supply chains, transport, etc., before approving projects.
- The Bank should apply a stronger “mitigation hierarchy,” prioritizing avoiding emissions wherever technically and economically feasible, rather than relying on cost-effectiveness loopholes or carbon offsets.
- There should be stronger climate-related alternatives analyses, including comparing projects to renewable or low-carbon options and calculating the social cost of carbon.
- The Bank should ensure greater transparency (all climate impact studies, emissions analyses, and mitigation plans should be publicly disclosed at least 120 days before financing decisions) and stricter oversight of financial intermediaries, advisory services, and trade finance to ensure all investments follow the same climate standards.