{"id":48754,"date":"2023-06-21T17:33:37","date_gmt":"2023-06-21T16:33:37","guid":{"rendered":"https:\/\/www.climatechangenews.com\/?p=48754"},"modified":"2023-06-21T17:33:37","modified_gmt":"2023-06-21T16:33:37","slug":"multilateral-banks-investments-in-industrial-livestock-undermine-their-paris-climate-commitments","status":"publish","type":"post","link":"https:\/\/www.climatechangenews.com\/2023\/06\/21\/multilateral-banks-investments-in-industrial-livestock-undermine-their-paris-climate-commitments\/","title":{"rendered":"Multilateral banks&#8217; investments in industrial livestock undermine their Paris climate commitments"},"content":{"rendered":"<p><strong>As world leaders meet tomorrow in Paris to discuss the role of public finance in addressing \u201cclimate change and the global crisis&#8221;, delegates should press multilateral development banks (MDBs) to invest in line with the Paris Agreement, including by ending their expansion of factory farming.<\/strong><\/p>\n<p>Animal agriculture contributes <a href=\"https:\/\/www.fao.org\/3\/cb7033en\/cb7033en.pdf\" target=\"_blank\" rel=\"noopener\">up to a fifth<\/a> of global greenhouse gas (GHG) emissions, including <a href=\"https:\/\/wedocs.unep.org\/bitstream\/handle\/20.500.11822\/41108\/methane_2030_SPM.pdf?sequence=1&amp;isAllowed=y\" target=\"_blank\" rel=\"noopener\">a third<\/a> of the world\u2019s methane emissions. Because methane has over 80 times the global warming potential of carbon dioxide (CO2) over a 20-year timeframe, swift and absolute reductions from the livestock sector are vital to keeping the Paris Agreement climate targets within reach.<\/p>\n<p>According to <a href=\"https:\/\/www.science.org\/doi\/10.1126\/science.aba7357\" target=\"_blank\" rel=\"noopener\">leading researchers<\/a>, even if fossil fuel emissions were immediately halted, livestock emissions could <a href=\"https:\/\/www.science.org\/doi\/10.1126\/science.aba7357\" target=\"_blank\" rel=\"noopener\">make it impossible<\/a> to limit warming to 1.5\u00b0C and difficult to limit it to \u201cwell below\u201d 2\u00b0C.<\/p>\n<h3>MDBs livestock investments<\/h3>\n<p>Despite this, since 2010, the World Bank and other Multilateral Development Banks (MDBs) have invested over <a href=\"https:\/\/docs.google.com\/document\/d\/1dPw0t3xkSw7HV5LdSI5e9q8sgWiTg5F9QGB2q0N__WA\/edit?usp=sharing\" target=\"_blank\" rel=\"noopener\">$4.6 billion<\/a> of public money to help expand large-scale livestock production, exacerbating the climate crisis while also driving deforestation, biodiversity loss, and air and water pollution.<\/p>\n<p>Tomorrow world leaders will meet in Paris for the Summit for a New Global Financing Pact, organized by French President Emmanuel Macron and Barbadian Prime Minister Mia Mottley.<\/p>\n<blockquote><p><a href=\"https:\/\/www.climatechangenews.com\/2023\/06\/21\/new-global-financing-pact-summit-paris-macron-mottley-taxes-fossil-fuels-planes-financial-transaction-tax\/\" target=\"_blank\" rel=\"noopener\"><strong>Fossil fuels<\/strong>, planes, ships and shares \u2013 What will be taxed for climate funds?<\/a><\/p><\/blockquote>\n<p>The summit will address key issues, including reform of multilateral development banks, with the goal of \u201caddressing climate change and the global crisis.\u201d Central to such reform should be a commitment by MDBs to end their support for GHG-intensive and highly environmentally destructive industrial livestock operations.<\/p>\n<p>On his first day as World Bank President, Ajay Banga made climate change a clear priority by <a href=\"https:\/\/www.reuters.com\/world\/world-banks-new-chief-asks-staff-double-down-development-climate-efforts-2023-06-02\/\" target=\"_blank\" rel=\"noopener\">directing<\/a> his staff to \u201cdouble down\u201d on their climate efforts. But words aren\u2019t enough. The World Bank and other MDBs must take concrete steps to preserve the best possibility of limiting global warming to \u201cwell below\u201d 2\u00b0C. In agriculture, this translates into shrinking, not expanding, the global industrial livestock sector.<\/p>\n<h3>Fatal flaws<\/h3>\n<p>MDBs are fueling the global expansion of factory farming while failing to account for the sector\u2019s impacts on climate.<\/p>\n<p>In a <a href=\"https:\/\/twitter.com\/S3F_global\" target=\"_blank\" rel=\"noopener\">new report<\/a> we co-authored on behalf of the Stop Financing Factory Farming Campaign (S3F), we argue that flaws in MDBs\u2019 frameworks for aligning their investments with the Paris Agreement are resulting in the misclassification of industrial livestock investments as compatible with the Agreement\u2019s mitigation and adaptation goals.<\/p>\n<p>A key flaw is that the frameworks are based on countries&#8217; Nationally Determined Contributions (NDCs)&#8211;the climate plans they submit to the United Nations Framework Convention on Climate Change (UNFCCC). But the UN&#8217;s climate body itself actually <a href=\"https:\/\/unfccc.int\/news\/climate-commitments-not-on-track-to-meet-paris-agreement-goals-as-ndc-synthesis-report-is-published\" target=\"_blank\" rel=\"noopener\">finds<\/a> that NDCs are \u201cnot on track to meet climate goals.\u201d<\/p>\n<blockquote><p><a href=\"https:\/\/www.climatechangenews.com\/2023\/06\/21\/carbon-credits-touted-as-saviour-of-coal-to-clean-energy-deals\/\" target=\"_blank\" rel=\"noopener\"><strong>Carbon credits<\/strong> touted as saviour of coal-to-clean energy deals<\/a><\/p><\/blockquote>\n<p>Equally important, only 40% of countries <a href=\"https:\/\/cgspace.cgiar.org\/bitstream\/handle\/10568\/115885\/CCAFS%20Info%20Note%20Livestock%202021%20NDCs.pdf\" target=\"_blank\" rel=\"noopener\">incorporate<\/a> livestock into their NDCs, and none have set methane reduction <a href=\"https:\/\/www.fairr.org\/news-events\/insights\/nationally-determined-contributions-lack-ambition-on-agriculture\" target=\"_blank\" rel=\"noopener\">targets<\/a> from the sector. MDBs\u2019 Paris Alignment frameworks also fail to account for the extreme vulnerability of intensive, highly centralized livestock operations to climate-related heat stress, disease spread, and water shortages.<\/p>\n<p>None of the world\u2019s leading MDBs currently require that industrial livestock sector borrowers provide comprehensive (Scope 1-3) emissions reporting or commit to absolute, time-bound GHG reduction targets.<\/p>\n<h3>IFC&#8217;s poor record<\/h3>\n<p>Even more concerning, a <a href=\"https:\/\/bankclimateadvocates.org\/ifc-project\" target=\"_blank\" rel=\"noopener\">comprehensive analysis<\/a> by Bank Climate Advisors reveals that the World Bank\u2019s private sector arm, the International Finance Corporation (IFC), has systematically failed to apply its own GHG-related environmental standards which are already insufficient to the task of reducing absolute emissions from industrial livestock production.<\/p>\n<p>Only last month, IFC approved a $32 million loan to Brazilian dairy giant Alvoar Lacteos and a $47 million <a href=\"https:\/\/disclosures.ifc.org\/project-detail\/SII\/46874\/gxyx-gfsp\" target=\"_blank\" rel=\"noopener\">loan<\/a> to GXYX, a massive pig farm operation in China, despite civil society <a href=\"https:\/\/www.climatechangenews.com\/2023\/05\/25\/world-bank-body-delays-vote-on-controversial-loan-to-brazilian-dairy-firm\/\" target=\"_blank\" rel=\"noopener\">concerns<\/a> and opposition to each. Neither company has committed to comprehensive GHG reporting or reductions or time-bound zero-deforestation targets, and neither has addressed other negative l impacts of value-chain activities, including biodiversity loss from feed production and grazing.<\/p>\n<blockquote><p><a href=\"https:\/\/www.climatechangenews.com\/2023\/06\/19\/south-africa-coal-energy-fossil-fuels-climate-lobby\/\" target=\"_blank\" rel=\"noopener\"><strong>South Africa<\/strong>\u2019s coal lobby is resisting a green transition<\/a><\/p><\/blockquote>\n<p>Often, MDBs use arguments about food security and the need to keep food prices low to justify investments in resource-intensive factory farming operations.<\/p>\n<p>In reality, however, a shift away from industrial livestock production toward agroecological systems could more efficiently and equitably feed the planet. These systems prioritize smaller-scale farmers and communities, help facilitate a shift toward sustainable, plant-forward diets, conserve natural resources, and yield significant climate and biodiversity-related benefits.<\/p>\n<p>To honor their <a href=\"https:\/\/financeincommon.org\/sites\/default\/files\/2020-11\/FiCS%20-%20Joint%20declaration%20of%20all%20Public%20Development%20Banks.pdf\" target=\"_blank\" rel=\"noopener\">commitments<\/a> to Paris Alignment, MDBs should shift their agricultural investments toward climate-friendly agroecological farming systems that support food sovereignty and food security, and end their investments in intensive, polluting and high-emitting industrial livestock operations. Shifting investments in this way would deliver economic, public health, food security, and climate dividends now and for future generations.<\/p>\n<p class=\"p1\"><span class=\"s1\"><i>Kelly McNamara is a senior research and policy analyst and Kari Hamerschlag is deputy director of food and agriculture at Friends of the Earth U.S.<\/i><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"Public money should stop flowing towards the expansion of animal agriculture, which is responsible for a fifth of the world&#8217;s emissions","protected":false},"author":122,"featured_media":48756,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4232,208,3861],"tags":[38,4224],"coauthors":[5025,5026],"class_list":["post-48754","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-agriculture","category-climate-finance","category-comment","tag-agriculture","tag-multilateral-development-banks","type-comment"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Multilateral banks&#039; 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