Bundesregierung
Climate warning
Climate warning
Patrik Lobergh
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German Development aid: Federal government supports the fossil energy industry abroad
In some countries, the climate-damaging fossil energy industry is apparently benefiting from German development aid. According to a report, the development bank DEG supports several companies, funds and banks that invest in the expansion of coal, oil and gas.
Officially, the federal government with its development bank DEG only supports projects "that make sense in terms of development policy and are environmentally and socially compatible". But according to a report by the journalistic platform “Correctiv”, things look a little different in reality. Accordingly, DEG also invests in banks, companies and funds that earn money from coal and gas-fired power plants.
Indirect support of the fossil industry
For the research, "Correctiv" evaluated the participations and investments of DEG in the years 2014 to 2021 and also referred to a new study by the network tax justice. On request, DEG informed that it had provided loans for four gas-fired power plants in the period mentioned - in the amount of 119 million euros. But according to the report, there has also been covert support for the fossil fuel economy in the past.
Christian Lindner (FDP), Federal Minister of Finance (from left to right), sits next to Robert Habeck (Bündnis 90/Die Grünen), Federal Minister for Economic Affairs and Climate Protection, and Federal Chancellor Olaf Scholz (SPD) on the government bench in the Bundestag.
As an example, "Correctiv" cites an investment by DEG in the "Indonesia Infrastructure Finance" fund in 2010. This fund not only finances roads, airports and hydroelectric power plants, but also the expansion of offshore platforms for natural gas extraction and the production of diesel and gasoline. The German development bank was able to book a profit of around 400,000 dollars from this business in 2021. There are similar examples in China and Egypt.
Complicated cash flows
DEG is also currently investing in the fossil fuel industry, for example in the Ivory Coast. Because the bank is indirectly involved in the French energy group Eranove, which is currently building a natural gas power plant there. This is expected to start operations in 2024.
Overall, it is very "difficult to understand DEG's cash flows," according to the report. In the case of the project in Ivory Coast, for example, neither the annual report nor the website explains how much money the bank has invested. When asked, DEG said that there was a loan amount of 24 million euros.
According to "Correctiv", the German development bank wants to become climate-neutral by 2040 and has committed itself to no longer wanting to finance new coal-fired power plants and oil production. However, the parent company of DEG, the KfW Group, wants to continue to allow financing in the oil and natural gas sector until 2024 under certain conditions. KfW justified this with the war in Ukraine, among other things.
Contradictory statements by the federal government
The report concludes that these plans run counter to the United Nations Framework Convention on Climate Change. According to this, Germany should actually stop investing in fossil fuels abroad by the end of 2022.
According to "Correctiv", there are contradictory statements from the traffic light coalition. While the Greens-led Federal Ministry of Economics said on request that it wanted to stop financing fossil fuels by January 2023, Christian Lindner's (FDP) Federal Ministry of Finance backed KfW's plans.
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Entwicklungshilfe: Bundesregierung unterstützt im Ausland die fossile Energieindustrie
Von deutscher Entwicklungshilfe profitiert in einigen Ländern offenbar die klimaschädliche fossile Energiewirtschaft. Einem Bericht zufolge unterstützt die Entwicklungsbank DEG mehrere Unternehmen, Fonds und Banken, die in den Ausbau von Kohle, Öl und Gas investieren.
https://www.rnd.de/politik/fragwuerdiger-klimaschutz-deutsche-entwicklungshilfe-fuer-fossile-industrie-A7FI7YHJLJH5ZO3IUI3OQOLGBI.html?xing_share=news
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8 w
Germany is leading this backward trend. Very shameful
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8 w
Germany is a real greenwashing state.
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8 w
Come on Germany! Retrogression is dangerous
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8 w
This is so ironical..this has to stop.
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8 w
Germany needs to be better than this, we all have one planet to take care of because if we don't it will mess us up.