European Investment Bank stops fossil funding; Bank of Canada acknowledges the dangers of stranded assets

european investment bank energy_lending_policy_enThe long-awaited decision came on November 13, when the European Investment Bank (EIB) issued a press release announcing that “ We will stop financing fossil fuels and we will launch the most ambitious climate investment strategy of any public financial institution anywhere.”  Also, “…..The EIB will work closely with the European Commission to support investment by a Just Transition Fund. The EIB will be able to finance up to 75% of the eligible project cost for new energy investment in these countries. These projects will also benefit from both advisory and financial support from the EIB.”  The Guardian summarizes the policy here ; details are in the full document, EIB Energy Lending Policy: Supporting the energy transformation.

The decision ends a long and contentious review process which received more than 149 written submissions and petitions signed by more than 30,000 people.  National members of the EU negotiated and compromised – the German government had been expected to abstain from the vote but ended by supporting the measure.  A press release from WWF-Europe  is generally supportive, stating “All public and private banks must urgently follow suit” – while pointing out that the decision postpones the end of financing for gas projects until 2021, and allows for further financing for any gas infrastructure that could potentially transport so-called “green gas”. A summary in Clean Energy Wire quotes Claudia Kemfert, climate economist at the German Institute for Economic Research, who calls the EIB decision “a game changer”, and says, “Even if there’s still a backdoor for fossil gas included, this is an important and necessary step in the right direction.”

Bank of Canada acknowledges climate change risks to the economy

On November 19, the Bank of Canada published its most complete statement to date about the transitions and risks which climate change will bring, in Researching the Economic Effects of Climate Change , a report prepared by Miguel Molico, senior research director at the bank’s Financial Stability Department.  On November 21, the Governor of the Bank of Canada followed up on this by raising the issue of climate change and the risk of stranded assets during an address to the Ontario Securities Commission .  The National Observer summarizes the development in “Bank of Canada warns of stranded assets and an abrupt transition to clean economy” (Nov. 23).

Also in Canada, on November 19, the Institute for Sustainable Finance was launched Housed at the Smith School of Business at Queen’s University, Kingston Ontario : “ The Institute for Sustainable Finance (ISF) is the first-ever cross-cutting and collaborative hub in Canada that fuses academia, the private sector, and government with the singular focus of increasing Canada’s sustainable finance capacity.” A more formal statement comes in the Institute’s launch report:  Green Finance: New Directions in Sustainable Finance Research & Policy  which states: “the Institute will span a continuum of expertise from across varying disciplines, including finance, economics, environmental studies, political science and others, in order to foster innovative research, education, external collaborations and partnerships. The Institute’s mandate is threefold:

  •  Generate innovative and relevant research on sustainable finance and effectively communicate this research to all pertinent stakeholders.
  • Serve as a platform for collaboration between government, academia and industry.
  • Provide educational opportunities and develop capacity in the field of sustainable finance.”

The Green Finance report summarizes the discussions by financial experts at a conference by the same name, held on June 14-15, 2019, following the release of the Report of the government’s Expert Panel on Sustainable Finance – Mobilizing Finance for Sustainable Growth.  To help readers who are not financial experts,  the Institute website offers useful “primers” to explain some fundamental concepts in sustainable finance, including  Climate-Related Financial Disclosures, Divestment, and Transition Bonds. Not to be confused with Just Transition funding, the primer explains that “Transition Bonds” are corporate financing tools, and the companies who issue them must use the proceeds to fund a business transition towards a reduced environmental impact or reduction in carbon emissions. ( The example given is that a coal-mining company could issue a  transition bond to finance efforts to capture and store carbon.)

Institute for sustainable financeAs one of its first actions, the ISF established the Canadian Sustainable Finance Network (CSFN)  an independent formal research and educational network for academia, industry and government to bring together a talented network of university faculty members and relevant members from industry, government and civil society.  A list of members, here , includes multiple faculty from twelve Canadian universities, one from Yale in the U.S., and other individual academics from universities which are not institutional members (including UBC, HEC Montreal, and Memorial University).

 

How to break the green ceiling in the U.S. environmental movement

Leaking Talent: How People of Color are Pushed out of Environmental Organizations  is the latest publication of Green 2.0 (formerly the Green Diversity Initiative), a U.S. NGO whose purpose is “to stimulate the demand for, and demonstrate the supply of, talented leaders of all backgrounds” in the mainstream environmental movement.

Leaking Talent reports on a 2018 survey which determined that, amongst the 40 largest green NGOs in the U.S., only 20% of the staff and 21% of the senior staff identified as “People of Color”.  The survey results for environmental foundations were similar:  25% of the staff and 4% of the senior staff identified as People of Color.  To determine the factors related to retention and promotion, the author examined qualitative and quantitative data from employees, their HR or diversity managers, and their CEOs. Results showed that  a focus on employee development and transparency in the promotion process had the most consistent impact on intent to stay for all employees. For top-level leaders, the strongest effect came from diversity and inclusion commitments stated in the organization’s mission, vision and values .

Green 2.0 established a baseline of data, and coined the term “green ceiling”  in 2014 with  The State of Diversity in Environmental Organizations: Mainstream NGOs, Foundations & Government Agencies . That survey concluded that unconscious bias, discrimination, and insular recruiting were the top three barriers to hiring and retention in the mainstream movement. Other publications are:   Beyond Diversity: A Roadmap to Building an Inclusive Organization  (2017) , and in January 2019,  the 2017 Transparency Report Card was updated

Activists are mobilizing to push for a Canadian Green New Deal in the 2019 elections

The push for a Canadian Green New Deal is a rising tide with strong public support, and a number of different activist groups are gathering in different coalitions to push our politicians to action. “Canadian Coalitions’ Election Platforms Call For Faster Action On Climate” (May 7) in The Energy Mix summarizes three prominent initiatives that launched in early May. Here are a few more details:

SUZUKI green new dealThe Pact for a Green New Deal  launched on May 6 with a very high profile campaign in Toronto, Montreal, and Vancouver. An Executive summary called 10 Questions  states: “it is a non-partisan, grassroots initiative supported by individuals, scientists, unions, Indigenous and civil society organizations and youth from across the country.” It  has been endorsed by over 67 organizations, including many of Canada’s largest environmental advocacy groups, and the following  labour unions:  CUPE Ontario, Canadian Union of Postal Workers, Confédération des syndicats nationaux (CSN), Syndicat de la fonction publique et parapublique du Québec, London and District Labour Council, and Canadian Worker Co-operative Federation.  Amongst youth, endorsers include: Climate Strike Canada, PowerShift: Young and Rising, ENvironnement JEUnesse (ENJEU), iMatter Halifax, and Students for Direct Action.  It also includes a number of influential celebrities, including David Suzuki, Naomi Klein, Stephen Lewis, Michelle Landsberg,  and dozens of musicians and artists – even  K.D. Laing, but not Margaret Atwood!  The full list of endorsers is here.

The 10 Questions document also states that the The Pact for a Green New Deal (P4GND) is NOT a copy of the U.S. campaign so widely identified with  the Sunrise Movement and Alexandria Ocacio Cortez. This Canadian initiative was inspired by Le Pacte  that was started in Quebec in November 2018 by Dominic Champagne (who endorses this new initiative).  The Pacte has attracted over  270,000 signatories who pledge to make personal lifestyle changes to address the climate emergency, including citizen engagement, and who endorse a definite list of priorities.  In contrast,  The Pact for a Green New Deal is a visionary process, as set out in a 3-page statement:

“We Invite All Sectors of Society to Launch The Year of The Green New Deal:  We call on workers, Indigenous communities, students, trade unions, migrants, community organizations and people across the country to gather, define and design a plan for a safe future and more prosperous present. The conversation about a Green New Deal for Canada must be led from the ground up. We call on all politicians and political parties to respond to the demands of the people with a Green New Deal that rests on two fundamental principles: 1. It must meet the demands of Indigenous knowledge and science and cut Canada’s emissions in half in 11 years while protecting cultural and biological diversity. 2. It must leave no one behind and build a better present and future for all of us.”

An interactive map here shows all the planned locations for the Pact for a Green New Deal cross-country tour, starting in Toronto in May.

Environmental Asks for the October 2019 Election: Many of the endorsers of the Pact for a Green New Deal are also endorsing another initiative, announced  on May 7, presenting 20 “asks” for Party Platforms .  “These platform recommendations represent the collective priorities of all of the organizations listed below and will form the basis of joint-venture communication concerning each political parties’ commitments in the lead-up to the 2019 Federal election.”  The group will also evaluate and compare the party platforms once they are announced. There are 14 groups involved are:  Canadian Environmental Law Association, CPAWS, David Suzuki Foundation, Ecology Action Centre, ecojustice, équiterre, Environmental Defence, Greenpeace, Nature Canada, Pembina Institute, Sierra Club Canada Foundation, West Coast Environmental Law Association, Wildlife Conservation Society Canada, and WWF-Canada. In addition, the United Steelworkers have announced their support via an article in the Toronto Star,Labour a key partner in a Green New Deal” (May 6 ) , also issued as a USW press release.

Younger Canadians launched their own political initiative to fight for a Green New Deal on April 17. The group, Our Time, states its goal   is “to organize and mobilize a generational alliance of young and millennial voters that’s big enough and bold enough to push politicians to support a Green New Deal in the lead up to the 2019 election.”

And without using the tern “Green New Deal”, the youth organization Climate Strike Canada, inspired by the Fridays for Future movement, has set out a list of political demands in an Open Letter and online petition :

“We, as citizens, therefore call upon all political parties and politicians to create and commit to a science-based and human rights focused Emergency Plan for Climate Justice that limits global warming to 1.5 degrees Celsius.

We, as citizens, pledge to vote only for political parties and politicians that include the following demands in their Emergency Plan for Climate Justice.

  • Bold Emissions Reductions Targets
  • Separation of Oil and State
  • A Just Transition
  • Environmental rights
  • Indigenous rights
  • Conservation of Biodiversity
  • Protection for Vulnerable Groups

A “new social contract” launches to fight climate change in Quebec

Montreal Climate-March_Mike-HudemaTwitter-660x400@2xAn article in the Montreal Gazette on November 12  describes the rapid rise of a new grassroots group in the province: in English, called “The Planet goes to Parliament”.  Their demonstrations have been covered by the CBC– including a march of 50,000 people in Montreal on November 10, calling for the newly-elected provincial government to make climate change action an urgent priority .  A report of an earlier  march in October is here   .

In addition to marches and demonstrations, over 175,000 Quebecers have signed the group’s Pact for Transition (English version here ), French version here ), which calls for “radical, co-ordinated and societal transformation” .  The Pact first calls for a solemn personal pledge to change behaviours “to wean ourselves off fossil fuels.” It also calls for the government to: enact a plan by 2020 for reaching Quebec’s climate targets; commit to reducing emissions by 50 per cent by 2030; develop an energy efficiency and electrification strategy; rule out any exploitation of fossil fuels in Quebec; and make climate change the first consideration of every policy.  Dominic Champagne, a theatre producer and anti-fracking campaigner, is being credited with launching the mass movement, and states: “This time it’s not just left-wing ecologists and artists. It’s way larger … This is really fulfilling an empty space on the political landscape.”

The Quebec government is now led by the right-wing Coalition Avenir Quebec (CAQ) party, which had the weakest  environmental platform in the election campaign; Québec Solidaire, a new left-leaning party, had the most well-developed and ambitious climate platform , and went from 0 to 10 seats in the new legislature. (See a WCR explainer here).   Since taking power in October,  the CAQ government announced the cancellation of the Apuiat wind farm , which was to be built in partnership with Innu communities.  As reported by the  Energy Mix ,the Chair and Vice-Chair of  Hydro-Québec resigned due to the cancellation.  Details about the Apuiat project are provided by CBC here (Oct. 20).

The Planet Goes to Parliament  has announced plans for at least two more climate protests, in Quebec City and in Montreal,  during  the COP24 meetings in Katowice Poland in December.  The group is thinking big, with a goal of 1 million signatories to their Pact – out of a population of 8 million in the province.