World Bank loans support high-carbon development in Indonesia: report
Despite their stated aim of boosting low-carbon growth, World Bank policy loans to countries like Indonesia are creating subsidies for coal, gas and oil projects, according to a report released today by the nonprofit Bank Information Center. At the same time, these policy programs undercut efforts to conserve forests, protect land rights and develop renewable energy, the report argues. The report examined Development Policy Finance operations in four countries: Indonesia, Peru, Egypt and Mozambique, which received a combined total of US$5 billion in funds from 2007 to 2016. Governments applying for these loans must agree with the World Bank on a policy reform agenda, which the funds are then used to support – money goes into the country’s general budget rather than to individual projects. According to the World Bank’s current Climate Change Action Plan, DPF funds should be used to support countries to transition to low-carbon economies and meet their global climate change commitments.
