Pro-Rainforest Policy

Banks Go for Green

Banks Go for Green.

Time Magazine, 30 May 2005 – It’s every corporation’s nightmare: a throng of rowdy activists gathers outside company buildings to demonstrate against alleged environmental and human-rights abuses. That was the scene in New York City and Chicago last month as dozens of people in white haz-mat suits converged on the offices of JPMorgan Chase to protest what they claimed was the bank’s underwriting of illegal logging in Indonesia and human-rights abuses tied to a Chase-funded mining operation in Peru. Oil companies and industrial giants may be accustomed to such treatment, but not JPMorgan Chase, the second largest bank in the U.S. Two weeks later, the company announced that it would introduce policies to promote sustainable forestry and indigenous people’s rights and would block funding that could be used for illegal logging.

It also promised to reduce its carbon emissions and those of its clients. Chalk up another victory for environmentally and socially responsible finance. Ten years ago, big private banks were not featured on environmentalists’ hit lists. Activists focused on large corporate polluters in the oil and timber industries. Over time, though, green groups have realized that one effective way to halt destructive practices is to take on the institutions that bankroll them. "The private financial sector more than any other has the ability to begin the ecological U-turn modern society so desperately needs," says Ilyse Hogue, director of the global-finance campaign at Rainforest Action Network (RAN), which led the fight against JPMorgan Chase. Yet even as they have publicly confronted big financial institutions, green groups–many of which belong to a loose collection of nongovernmental organizations (NGOs) known as BankTrack–have privately collaborated with banks to jointly tackle environmental and social concerns.

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Rain forest carbon credits poposal

BBC NEWS | Science/Nature | Request for forest carbon credits.

Rainforest protection should be added to measures to prevent global warming, a seminar of climate experts from more than 150 countries has heard in Bonn.

The proposal, from Papua New Guinea, could open the way to a major expansion of the attempts to limit climate change.
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ISLAND OF NEW GUINEA
                      

               

               
                     
                   

Has world’s third largest rainforest,
after Amazonia and Congo

The German meeting, organised by the secretariat of the UN Framework Convention on Climate Change (UNFCCC), is the first international attempt to look into what to do when the Kyoto Protocol expires in 2012.

Plush red armchairs on the podium, for TV-style question and answer sessions after each clutch of presentations, underline the deliberately informal style of discussions here.

It is all part of the effort to avoid the diplomatic rancour that usually seems to afflict such get-togethers.

It’s all carbon

The forestry proposal from Papua New Guinea ran counter to the pattern of most of the discussions.

While other developing countries rejected any spreading of responsibilities beyond the industrialised countries already signed up to the Kyoto Protocol – "you caused the problem, so you show us how to fix it first" being the essence of the argument – Papua New Guinea actively welcomed the chance to be held accountable for greenhouse gas emissions attributable to the destruction of its rainforest.

Its position comes down, in part, to the success of the carbon emissions trading scheme launched in Europe earlier this year.

A tonne of carbon saved from the atmosphere now comes
with a price tag – and Papua New Guinea argues that its rainforest
carbon is as good as any coal or oil burnt in the West.

"A tonne is a tonne is a tonne," declared the PNG
ambassador to the UN. But at the moment, there is no way developing
countries can trade avoided rainforest destruction on the international
market.

The role of forests in moderating climate change has long been recognised. Trees absorb some of the carbon dioxide that causes global warming; and cutting them down removes that benefit. What is more, the burned wood and degraded land left behind becomes a source of additional greenhouse gases.
   

In the past, however, the complexity of quantifying the
amount of rainforest destruction, let alone any change in the rate of
destruction, led to the issue being sidelined under the Kyoto Protocol.

There may be reluctance to re-open an issue that has
been extensively debated in the past. But the Papua New Guineans say
the response has been strong, and they believe many other rainforest
countries are interested in the scheme.

‘Fair and equitable’

It has been estimated that perhaps a quarter of all
greenhouse gas emissions can be attributed to the destruction of
rainforest
; and that if aims to limit global warming to 2C (the
European target) are to succeed, forestry has to be included in the
discussion, PNG believes.

We want to save our rainforest, runs the PNG argument, but you have to help us pay for it.

And PNG does not want to wait until 2012 – "there won’t be any rainforest left to save if we do," it says.

"Kyoto does not allow developing nations that reduce
deforestation emissions to get credit. Kyoto unfairly discriminates
against rainforested developing nations who seek to participate within
the world carbon market," ambassador Robert Aisi told the meeting.

"Tropical rainforest nations deserve to be treated
equally. If we reduce our deforestation, we should be compensated for
these reductions, as are industrial countries.

"The compensation we seek is access to the world’s carbon markets, but on a fair and equitable basis."

 

JPMorgan Chase Joins Effort To Save Endangered Forests And Stop Global Warming

JPMorgan Chase Joins Effort To Save Endangered Forests And Stop Global Warming.

JPMorgan Chase Joins Effort To Save Endangered Forests And Stop Global Warming

Author: Rainforest Action Network
Published on Apr 26, 2005, 00:55
Rainforest Action Network today commended JPMorgan Chase on its adoption of a comprehensive environmental policy to address the challenges of global warming and deforestation and recognize the rights of indigenous nations. The policy sets new best practices on the environment in several critical areas including carbon mitigation and reduction, endangered forest protection, independently certified sustainable forestry as well as land and consultation rights of native communities everywhere. It is the first policy of its kind in the financial sector to create a special heading acknowledging "No Go Zones," a major step forward in the effort to protect ecosystems that are most valuable intact and untouched by industry. Developed in cooperation with groups including Rainforest Action Network, the new policy marks another environmental milestone in the private financial sector and follows the adoption of similar policies by Citigroup and Bank of America last year.

Major advances include:

• Global Warming: JPMorgan Chase will encourage clients to develop carbon mitigation plans that include measurement and disclosure of greenhouse gas emissions as well as plans to reduce or offset them. In a financial industry first, the bank will internalize carbon pollution for power sector projects by integrating the financial cost of greenhouse gas emissions into its analysis

• Sustainable Forestry Certification: The policy makes JPMorgan Chase the first private bank to state a preference for Forest Stewardship Council (FSC) certification.

• Illegal Logging: The policy will require JPMorgan Chase clients that “process, purchase or trade” forest products from high-risk countries to have certifiable chain of custody systems in place to ensure that the wood comes from legal sources.

• Human Rights: The bank recognizes the right of indigenous individuals and communities to “self determination over issues affecting their lands and territories, traditionally owned or otherwise occupied and used.”

• Project Finance: JPMorgan Chase joins the Equator Principles, lowers the application threshold to $10 million, and broadens the scope to include “all loans, debt and equity underwriting, financial advisories and project-linked derivative transactions,” specifically naming the mining, forestry, and oil and gas industries.

• Private Equity Risk Management: The policy marks the first time that any financial institution has integrated environmental risk management into the due diligence process for its private equity divisions.

• Leadership on Public Policy: In another industry first, JPMorgan Chase has agreed to arrange cooperative meetings with other financial institutions to advocate for reductions of greenhouse gas emissions and “focus on specific projects to alter the emissions trajectory of the US economy.”

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