La finanza fossile - PresaDiretta 27/09/2021

The Impact of Coal Mining in Germany

Overview of the Gard Beyeler Mine

• The Gard Beyeler mine, located southwest of Düsseldorf, is one of Europe's largest coal extraction sites.

• It primarily extracts lignite, a type of coal known for being inefficient and highly polluting.

• Villages surrounding the mine have been demolished over the years to make way for mining operations, with six more villages currently threatened.

Community Resistance and Demolition Threats

• Many homes in threatened villages are now abandoned as residents face pressure to vacate their properties. Some villagers refuse to leave despite offers from the mining company.

• A resident expresses determination not to sell her home for money, emphasizing that she will fight for her property against the energy demands associated with coal mining.

• The village of Kainan Berg is highlighted as facing imminent demolition; remaining residents display yellow symbols on their homes in solidarity against eviction efforts.

Legal and Activist Responses

• Citizens have banded together to purchase land between the mine and their village as a protective measure against expropriation attempts by the mining company.

• Activists have established treehouses and camps near the mine to resist future demolitions, highlighting ongoing community activism against corporate encroachment.

Financial Backing of Fossil Fuels

• Research indicates significant financial investments from major banks into fossil fuels, including coal projects like those at Gard Beyeler; Italian companies alone invested $183 million in such initiatives.

• The global finance sector continues to support fossil fuel industries despite widespread calls for climate action; since the Paris Agreement, banks have invested approximately $3.8 trillion into fossil fuels.

Emissions and Environmental Impact

• Analysis shows that investments by Italian banks in fossil fuels contribute significantly to CO2 emissions—73 million tons attributed solely to financing activities related to these sectors. This figure parallels Austria's total emissions for a year.

• Major Italian banks like Unicredit and Intesa Sanpaolo hold substantial exposure in fossil fuel financing but claim they are developing guidelines to reduce such funding gradually; however, skepticism remains regarding their commitment and timeliness in addressing these issues.

Impact of Fossil Fuel Financing on Climate Crisis

Financial Exposure to Fossil Fuels

• The worsening climate crisis is exacerbated by significant financial exposure to the fossil fuel industry, with major European banks holding over €530 billion in fossil fuel investments, risking bankruptcy as the world shifts away from these energy sources.

• This situation poses a potential financial crisis, with banks facing financial shocks and failures that are largely underestimated by regulators. Public funds also contribute to fossil fuel financing through export credit agencies.

Role of Export Credit Agencies

• In Europe, each country has its own export credit agency (ECA), such as SACE in Italy, which guarantees private companies' foreign investments and is controlled by the Ministry of Treasury. This agency has significantly increased its guarantees for fossil fuels since the Paris Agreement.

• Between 2016 and 2019, SACE tripled its volume of guarantees for fossil fuels—specifically oil and gas—reaching €8.5 billion, with over one-third allocated to these sectors. There is a lack of transparency regarding specific projects funded by SACE in oil and gas sectors.

Transparency Issues in Pension Funds

• Italian pension funds have financed the fossil fuel industry with over €600 million in 2018 alone; this figure represents only a fraction of their overall investments due to transparency issues within these funds. Researchers highlight that pension funds are generally more transparent than other types of social security funds like those for doctors or lawyers.

• Many pension schemes do not invest directly but rely on banks or management companies, making it difficult for individuals to trace where their contributions are invested without direct inquiries to their respective pension fund administrators.

Advocacy for Accountability

• The Association of Physicians for the Environment (ISDE) sought clarification from ENPAM (the National Social Security Institute for Doctors) after discovering substantial investments directed towards Eni without detailed project disclosures; however, their appeal was not addressed adequately during meetings with ENPAM's leadership.

• Despite receiving some responses from Eni about investment allocations—indicating that only 27% was dedicated specifically to gas—the broader issue remains unaddressed as many stakeholders continue seeking clarity on how their money is being utilized within the fossil fuel sector without satisfactory answers provided thus far.