Some questions for the IFC about its “Forest bonds”

On 1 November 2016, I wrote about the International Finance Corporation’s launch of a US$152 million bond. According to the IFC’s press release, the bond will “protect forests and deepen carbon-credit markets”. The reality is that the IFC is bailing out Wildlife Works’ Kasigau Corridor REDD project in Kenya, a project that had failed to raise enough money from sales of carbon credits. The carbon credits provide some green REDD froth on IFC’s business as usual.

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REDD: The world’s largest top-down tool in development cooperation

The aim of reducing the emissions from forest destruction and degradation caused by industrial agriculture, logging, mining for fossil resources, etc. is today decisive to the survival of humankind and our planet. However, when the tool to achieve this aim is the trading of emission credits (offsets), we arrive at the wrong solutions.

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The European Investment Bank and USAID are supporting REDD through Althelia Climate Fund: A financial intermediary based in the tax haven of Luxembourg

2016-05-05-212726_1183x1026_scrotOn 13 June 2013, the European Investment Bank agreed to give up to €25 million to Athelia Climate Fund. This is the first time that the European Investment Bank has funded a European carbon fund. It is also the first time that the EIB has supported REDD, and it is doing so through a financial intermediary.

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