Semiarid Regions of Latin America Cooperate to Adapt to Climate

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Combating Desertification and Drought

A rural settlement in the state of Pernambuco, in Brazil's semiarid ecoregion. Tanks that collect rainwater from rooftops for drinking water and household usage have changed life in this parched land, where 1.1 million 16,000-litre tanks have been installed so far. CREDIT: Mario Osava/IPS

A rural settlement in the state of Pernambuco, in Brazil’s semiarid ecoregion. Tanks that collect rainwater from rooftops for drinking water and household usage have changed life in this parched land, where 1.1 million 16,000-litre tanks have been installed so far. CREDIT: Mario Osava/IPS

RIO DE JANEIRO, Aug 27 2020 (IPS) – After centuries of poverty, marginalisation from national development policies and a lack of support for positive local practices and projects, the semiarid regions of Latin America are preparing to forge their own agricultural paths by sharing knowledge, in a new and unprecedented initiative.

In Brazil’s semiarid Northeast, the Gran Chaco Americano, which is shared by Argentina, Bolivia and Paraguay, and the Central American Dry Corridor (CADC), successful local practices will be identified, evaluated and documented to support the design of policies that promote climate change-resilient agriculture in the three ecoregions.

This is the objective of DAKI-Semiárido Vivo, an initiative financed by the United Nations International Fund for Agricultural Development (IFAD) and implemented by the Brazilian Semiarid Articulation (ASA), the Argentinean Foundation for Development in Justice and Peace (Fundapaz) and the National Development Foundation (Funde) of El Salvador.

DAKI stands for Dryland Adaptation Knowledge Initiative.

The project, launched on Aug. 18 in a special webinar where some of its creators were speakers, will last four years and involve 2,000 people, including public officials, rural extension agents, researchers and small farmers. Indirectly, 6,000 people will benefit from the training.

“The aim is to incorporate public officials from this field with the intention to influence the government’s actions,” said Antonio Barbosa, coordinator of DAKI-Semiárido Vivo and one of the leaders of the Brazilian organisation ASA.

The idea is to promote programmes that could benefit the three semiarid regions, which are home to at least 37 million people – more than the total populations of Chile, Ecuador and Peru combined.

The residents of semiarid regions, especially those who live in rural areas, face water scarcity aggravated by climate change, which affects their food security and quality of life.

Zulema Burneo, International Land Coalition coordinator for Latin America and the Caribbean and moderator of the webinar that launched the project, stressed that the initiative was aimed at “amplifying and strengthening” isolated efforts and a few longstanding collectives working on practices to improve life in semiarid areas.

Abel Manto, an inventor of technologies that he uses on his small farm in the state of Bahia, in Brazil's semiarid ecoregion, holds up a watermelon while standing among the bean crop he is growing on top of an underground dam. The soil is on a waterproof plastic tarp that keeps near the surface the water that is retained by an underground dam. CREDIT: Mario Osava/IPS

Abel Manto, an inventor of technologies that he uses on his small farm in the state of Bahia, in Brazil’s semiarid ecoregion, holds up a watermelon while standing among the bean crop he is growing on top of an underground dam. The soil is on a waterproof plastic tarp that keeps near the surface the water that is retained by an underground dam. CREDIT: Mario Osava/IPS

The practices that represent the best knowledge of living in the drylands will be selected not so much for their technical aspects, but for the results achieved in terms of economic, ecological and social development, Barbosa explained to IPS in a telephone interview from the northeastern Brazilian city of Recife, where the headquarters of ASA are located.

After the process of systematisation of the best practices in each region is completed, harnessing traditional knowledge through exchanges between technicians and farmers, the next step will be “to build a methodology and the pedagogical content to be used in the training,” he said.

One result will be a platform for distance learning. The Federal Rural University of Pernambuco, also in Recife, will help with this.

Decentralised family or community water supply infrastructure, developed and disseminated by ASA, a network of 3,000 social organisations scattered throughout the Brazilian Northeast, is a key experience in this process.

In the 1.03 million square kilometres of drylands where 22 million Brazilians live, 38 percent in rural areas according to the 2010 census, 1.1 million rainwater harvesting tanks have been built so far for human consumption.

An estimated 350,000 more are needed to bring water to the entire rural population in the semiarid Northeast, said Barbosa.

But the most important aspect for agricultural development involves eight “technologies” for obtaining and storing water for crops and livestock. ASA, created in 1999, has helped install this infrastructure on 205,000 farms for this purpose and estimates that another 800 peasant families still need it.

There are farms that are too small to install the infrastructure, or that have other limitations, said Barbosa, who coordinates ASA’s One Land and Two Waters and native seed programmes.

The “calçadão” technique, where water runs down a sloping concrete terrace or even a road into a tank that has a capacity to hold 52,000 litres, is the most widely used system for irrigating vegetables.

A group of peasant farmers from El Salvador stand in front of one of the two rainwater tanks built in their village, La Colmena, in the municipality of Candelaria de la Frontera. The pond is part of a climate change adaptation project in the Central American Dry Corridor. Central American farmers like these and others from Brazil's semiarid Northeast have exchanged experiences on solutions for living with lengthy droughts. CREDIT: Edgardo Ayala/IPS

A group of peasant farmers from El Salvador stand in front of one of the two rainwater tanks built in their village, La Colmena, in the municipality of Candelaria de la Frontera. The pond is part of a climate change adaptation project in the Central American Dry Corridor. Central American farmers like these and others from Brazil’s semiarid Northeast have exchanged experiences on solutions for living with lengthy droughts. CREDIT: Edgardo Ayala/IPS

And in Argentina’s Chaco region, 16,000-litre drinking water tanks are mushrooming.

But tanks for intensive and small farming irrigation are not suitable for the dry Chaco, where livestock is raised on large estates of hundreds of hectares, said Gabriel Seghezzo, executive director of Fundapaz, in an interview by phone with IPS from the city of Salta, capital of the province of the same name, one of those that make up Argentina’s Gran Chaco region.

“Here we need dams in the natural shallows and very deep wells; we have a serious water problem,” he said. “The groundwater is generally of poor quality, very salty or very deep.”

First, peasants and indigenous people face the problem of formalising ownership of their land, due to the lack of land titles. Then comes the challenge of access to water, both for household consumption and agricultural production.

“In some cases there is the possibility of diverting rivers. The Bermejo River overflows up to 60 km from its bed,” he said.

Currently there is an intense local drought, which seems to indicate a deterioration of the climate, urgently requiring adaptation and mitigation responses.

Reforestation and silvopastoral systems are good alternatives, in an area where deforestation is “the main conflict, due to the pressure of the advance of soy and corn monoculture and corporate cattle farming,” he said.

Mariano Barraza of the Wichí indigenous community (L) and Enzo Romero, a technician from the Fundapaz organisation, stand next to the tank built to store rainwater in an indigenous community in the province of Salta, in the Chaco ecoregion of northern Argentina, where there are six months of drought every year. CREDIT: Daniel Gutman/IPS

Mariano Barraza of the Wichí indigenous community (L) and Enzo Romero, a technician from the Fundapaz organisation, stand next to the tank built to store rainwater in an indigenous community in the province of Salta, in the Chaco ecoregion of northern Argentina, where there are six months of drought every year. CREDIT: Daniel Gutman/IPS

More forests would be beneficial for the water, reducing evaporation that is intense due to the heat and hot wind, he added.

Of the “technologies” developed in Brazil, one of the most useful for other semiarid regions is the “underground dam,” Claus Reiner, manager of IFAD programmes in Brazil, told IPS by phone from Brasilia.

The underground dam keeps the surrounding soil moist. It requires a certain amount of work to dig a long, deep trench along the drainage route of rainwater, where a plastic tarp is placed vertically, causing the water to pool during rainy periods. A location is chosen where the natural layer makes the dam impermeable from below.

This principle is important for the Central American Dry Corridor, where “the great challenge is how to infiltrate rainwater into the soil, in addition to collecting it for irrigation and human consumption,” said Ismael Merlos of El Salvador, founder of Funde and director of its Territorial Development Area.

The CADC, which cuts north to south through Guatemala, Honduras and El Salvador, is defined not as semiarid, but as a sub-humid region, because it rains slightly more there, although in an increasingly irregular manner.

Some solutions are not viable because “75 percent of the farming areas in the Corridor are sloping land, unprotected by organic material, which makes the water run off more quickly into the rivers,” Merlos told IPS by phone from San Salvador.

“In addition, the large irrigation systems that we’re familiar with are not accessible for the poor because of their high cost and the expensive energy for the extraction and pumping of water, from declining sources,” he said.

The most viable alternative, he added, is making better use of rainwater, by building tanks, or through techniques to retain moisture in the soil, such as reforestation and leaving straw and other harvest waste on the ground rather than burning it as peasant farmers continue to do.

“Harmful weather events, which four decades ago occurred one to three times a year, now happen 10 or more times a year, and their effects are more severe in the Dry Zone,” Merlos pointed out.

Funde is a Salvadoran centre for development research and policy formulation that together with Fundapaz, four Brazilian organisations forming part of the ASA network and seven other Latin American groups had been cooperating since 2013, when they created the Latin American Semiarid Platform.

The Platform paved the way for the DAKI-Semiárido Vivo which, using 78 percent of its two million dollar budget, opened up new horizons for synergy among Latin America’s semiarid ecoregions. To this end, said Burneo, it should create a virtuous alliance of “good practices and public policies.”

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Crisis Hits Oil Industry and Energy Transition Alike

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Mexico's state-run oil giant Pemex faces a difficult outlook due to the fall in international oil prices and the crisis resulting from the coronavirus pandemic, which threatens its production and finances, in a situation analysed during the 29th La Jolla Energy Conference, organised online by the Institute of the Americas. CREDIT: Emilio Godoy/IPS

Mexico’s state-run oil giant Pemex faces a difficult outlook due to the fall in international oil prices and the crisis resulting from the coronavirus pandemic, which threatens its production and finances, in a situation analysed during the 29th La Jolla Energy Conference, organised online by the Institute of the Americas. CREDIT: Emilio Godoy/IPS

MEXICO CITY, May 22 2020 (IPS) – While it attempts to cushion the effects of the coronavirus pandemic, the Latin American and Caribbean region also faces concerns about the future of the energy transition and state-owned oil companies.

These questions were discussed at the 29th La Jolla Energy Conference, organised by the Institute of the Americas. It was held online May 18-22, rather than bringing together more than 50 speakers at the institute’s headquarters in the coastal district of San Diego, in the U.S. state of California, in the midst of the COVID-19 pandemic.

Alfonso Blanco of Uruguay, executive secretary of the Latin American Energy Organisation (OLADE), said during a session on global trends and the regional energy industry that the changes seen during the pandemic will spread after the crisis and will be long-lasting.

“There will be structural transformations and we are convinced that most consumer behaviors will change after the pandemic. Demand will vary due to changes in the main areas of transportation and other energy areas. The effects on fossil fuel consumption will be strong and there will be a greater impact on renewable energies,” he said.

OLADE, a 27-member regional intergovernmental organisation for energy coordination, estimates that electricity demand has fallen by 29 percent in Bolivia compared to 2019, as a result of the severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2), which causes COVID-19, and by 26 percent in Argentina, 22 percent in Brazil and 11 percent in Chile.

“There will be structural transformations and we are convinced that most consumer behaviors will change after the pandemic. Demand will vary due to changes in the main areas of transportation and other energy areas. The effects on fossil fuel consumption will be strong and there will be a greater impact on renewable energies.” — Alfonso Blanco

Likewise, final energy demand plummeted 14 percent in Brazil compared to 2019, 11 percent in both the Andean and Southern Cone regions, nine percent in Mexico, seven percent in Central America and five percent in the Caribbean.

As countries went into lockdown to curb the spread of COVID-19, electricity consumption by businesses and factories declined, due to the suspension of activities.

Leonardo Sempertegui, legal advisor to the Organisation of Petroleum Exporting Countries (OPEC), said the pandemic may be a wake-up call for countries lagging behind in the energy transition.

“This may be the new normal. The structure and governance of the energy architecture to cope with the next phase are changing dramatically. Energy poverty and the energy transition cannot be solved regardless of who controls a resource; these challenges cannot wait,” he said in the same session.

In Latin America, nations like Argentina, Bolivia, the Dominican Republic, Ecuador, Honduras and Uruguay have made progress in the energy transition since 2015, while Brazil has slid backwards and countries like Mexico are stuck in the same place, according to the World Economic Forum’s Energy Transition Index, released May 13.

As the region heads into the fourth month of the pandemic, countries are assessing their electricity markets, which have been shaken by the crisis.

Nations like Argentina, Chile, Colombia and Peru have resorted to long-term electricity auctions, which have generated low prices for renewables, while Mexico suspended such schemes in 2019.

In Argentina, as Andrés Chambouleyron, a non-resident fellow at the Institute of the Americas, explained, industrial consumption fell by 50 percent and electricity distributors have not been able to obtain sufficient revenues to cover fixed costs or electricity purchases.

The government has thus provided financing to Cammesa – the electricity wholesale market administration company – to pay the generators, since it is bound by contracts to buy the energy.

“There will be a permanent change in electricity consumption in Argentina. We have cheaper gas than before; the models say that you have to use more gas because it is cheaper than other sources. We won’t see much change in Argentina’s energy mix, and that could extend to all of Latin America,” said Chambouleyron, who warned of breach of and renegotiation of contracts for energy purchases.

Low oil prices threaten to slow down the energy transition in Latin America, although renewable energies already compete with the costs of fossil fuels, agreed experts at the 29th La Jolla Energy Conference, organised online by the Institute of the Americas. The photo shows solar panels on a house in Ajijic, in the western Mexican state of Jalisco. CREDIT: Emilio Godoy/IPS

Low oil prices threaten to slow down the energy transition in Latin America, although renewable energies already compete with the costs of fossil fuels, agreed experts at the 29th La Jolla Energy Conference, organised online by the Institute of the Americas. The photo shows solar panels on a house in Ajijic, in the western Mexican state of Jalisco. CREDIT: Emilio Godoy/IPS

While renewables are already competing in price with conventional sources, low oil and gas prices undermine their expansion, a predicament that alternative energy sources have been facing in recent years.

In addition, the rise in the cost of international credit and the fluctuations of the dollar against local currencies may make generation more expensive.

In another session on the outlook for state-owned oil companies, Marta Jara, former president of Uruguay’s public oil company ANCAP, said the current crisis could accelerate the transition, but called it a “major challenge”.

“The temptation is to be opportunistic and forget the roadmap of the energy transition. We must invest in sustainable energy systems, decarbonise transport. It is important to secure funding and create jobs. I hope the crisis opens the door to be more innovative,” she said.

Viable or not?

The plunge in fossil fuel prices is damaging the finances of the region’s oil producing countries, such as Argentina, Bolivia, Brazil, Colombia, Ecuador, Mexico, Peru and Venezuela, and state companies in the sector are facing problems with regard to planning and operations.

But it benefits net importers, like the countries of Central America or Chile, whose oil bills have shrunk, while for consumers in both oil producing and importing countries the cost of electricity could go down.

“The most competitive will be the countries with lower oil extraction costs. Some projects will not be economically viable. We will see greater economic problems than in 2019,” predicted Lisa Viscidi, director of the Energy, Climate Change and Extractive Industries Programme at the non-governmental Inter-American Dialogue, during a panel on the situation in several Caribbean nations.

The pandemic and a rise in Saudi production announced on Mar. 10 led to a collapse in oil prices and the consequent risk of bankruptcies in the industry. State-owned oil companies have fared better than others so far in the crisis.

In another session on the outlook for state-owned oil companies, John Padilla, managing director of the private consulting firm IPD Latin America, stated that “it will take time to get out of this situation, with effects for the region, and the need for great efficiency.

“Most nations have been exporters, efficiency will be the key. What has not been done is to cultivate domestic and regional markets, state enterprises are not going to play the same role as they always have,” he said.

Public companies such as Brazil’s Petrobras and Colombia’s Ecopetrol entered the crisis in a better position than Mexico’s Pemex, Venezuela’s PDVSA and Argentina’s YPF, according to experts.

“These are difficult times, even for the best prepared. We can hope that if the country and its company are in trouble, if governments need money, they can get more out of the companies,” said Francisco Monaldi, interim director of the Baker Institute for Public Policy’s Latin America Initiative at the private Rice University in the U.S. state of Texas.

In his view, “Mexico is in better fiscal conditions, it should not be a problem. But Pemex can drag Mexico down. If the government doesn’t change direction, it could become a serious problem,” he said as an example.

Although Pemex will increase its investment in 2020, the oil company reported losses of 20 billion dollars in the first quarter of this year. Due to the crisis, Petrobras limited its investment to 3.5 billion dollars and its daily production to 200,000 barrels, and postponed the sale of eight refineries.

For Lucas Aristizábal, a senior director in Fitch Ratings’ Latin American corporates group, some state-owned oil companies are viable and others are not.

“In 2021, the financial contribution of oil will be lower for governments. If they want the companies to play a key role, they will put more pressure on their financial structure. The current situation illustrates the economics of these corporations,” he said during the forum.

Pemex and YPF were already losing money per barrel in 2019, while Petrobras has more balanced production costs.

On the oil horizon, and in the midst of the COVID-19 crisis, Guyana has become the rising star, although there is still political uncertainty, as the result of the Mar. 2 presidential elections is still unclear.

“It’s hard to predict what will happen. There is a risk of U.S. sanctions that would not affect investment in the sector, but would pose a political risk to the country,” said Thomas Singh, in the Department of Economics at the public University of Guyana.

The country expects to extract 600,000 barrels per day by 2024 and take in revenues of five billion dollars, with reserves exceeding five billion barrels.

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Mexico’s Development Banks Fuel the Fossil Energy Trade

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Demonstrators demand clarification of the murder of land rights activist Samir Flores and the shutdown of a thermoelectric plant in the state of Morelos, in central Mexico, in a February 2019 protest on Mexico City's emblematic Paseo Reforma. CREDIT: Emilio Godoy/IPS

Demonstrators demand clarification of the murder of land rights activist Samir Flores and the shutdown of a thermoelectric plant in the state of Morelos, in central Mexico, in a February 2019 protest on Mexico City’s emblematic Paseo Reforma. CREDIT: Emilio Godoy/IPS

MEXICO CITY, May 20 2020 (IPS) – Since 2012, Teresa Castellanos has fought the construction of a gas-fired power plant in Huexca, in the central Mexican state of Morelos, adjacent to the country’s capital.

“We don’t want the power plant to operate, because it will cause irreparable damage, polluting the water and air. This project was imposed on us; we have to defend the water and the land. This is not an industrial zone,” the activist, coordinator of the Huexca Resistance Committee, told IPS.

During the tests, the constant noise of the turbines also altered the life of this small community of just over 1,000 people, mostly farmers, near the Cuautla River, within the rural municipality of Yecapixtla.

“Development banks must have safeguards and principles for sustainable investment. National regulations are needed, which define climate finance and green finance, what principles govern them, what are the climate risks. The trend should be to increasingly finance green projects and less and less hydrocarbons.” — Liliana Estrada

The Central Combined Cycle Plant, located in Huexca and with a capacity of 620 megawatts based on gas and steam, is part of the Morelos Integral Project (PIM), developed by the state Federal Electricity Commission (CFE). It also consists of an aqueduct and a gas pipeline that crosses the states of Morelos, Puebla and Tlaxcala.

The People’s Front in Defence of Land and Water of Morelos, Puebla and Tlaxcala and its ally, the Permanent Assembly of the People of Morelos, have managed to get several court orders that have blocked the operation of the plant, the 12-km aqueduct and the 171-km gas pipeline since 2015.

Castellanos, who has won an international and a national award for her activism, has been involved in the battle against the plant from the very start, which has earned her persecution and threats.

The opposition to the power plant by local communities that depend on planting corn, beans, squash and tomatoes and raising cattle and pigs, focuses on the lack of consultation, the threat to their agricultural activity, due to the extraction of water from the rivers, and the discharge of liquid waste.

In February 2019, a public consultation that did not meet international standards supported the completion of the project.

A few days earlier, activist Samir Flores had been murdered, a crime that remains unsolved – just one more instance of violence against environmentalists in Mexico. Despite Flores’ murder, the government of leftist President Andrés Manuel López Obrador went ahead with the referendum and upheld the result.

Public funds have fuelled the conflict, as the state-owned National Bank of Public Works and Services (Banobras) lent some 55 million dollars for the pipeline.

As in the case of other projects, development banks have become a financial pillar for the oil industry in Latin America’s second-largest nation, population 130 million.

The National Bank of Foreign Trade (Bancomext), Banobras and Nacional Financiera (Nafin) have funneled millions of dollars into building pipelines and oil and gas facilities in recent years, even though the climate change crisis makes it necessary to abandon such investments.

They have also financed renewable energy projects, but in much smaller amounts than fossil fuels.

The construction and operation of the Central Combined Cycle Plant, of the state Federal Electricity Commission, financed with public funds, unleashed a conflict with residents of Huexca, a small community in the central Mexican state of Morelos, which has brought the operation of the thermoelectric plant to a halt. CREDIT: Emilio Godoy/IPS

The construction and operation of the Central Combined Cycle Plant, of the state Federal Electricity Commission, financed with public funds, unleashed a conflict with residents of Huexca, a small community in the central Mexican state of Morelos, which has brought the operation of the thermoelectric plant to a halt. CREDIT: Emilio Godoy/IPS

Energy reform pillar

The energy reform that then conservative president Enrique Peña Nieto (2012-2018) enacted in 2013 opened the sector to private capital, broke the monopoly of the state-owned Petroleos Mexicanos (Pemex) oil giant and CFE, and made Mexico an attractive market for international investment in the sector.

To support this transformation, the state development banks also opened their coffers.´

Since 2012, Banobras, which finances infrastructure and public works and services, has lent at least 721 million dollars for the construction of gas pipelines, 10.2 billion dollars for oil and gas projects, 251 million dollars for electrical cogeneration, from steam generated in hydrocarbon plants, and eight million dollars for the construction of a thermoelectric plant that will burn fuel oil in the northwestern state of Baja California Sur.

Bancomext, which provides financing to exporters, importers and nine strategic sectors, has delivered some 500,000 dollars to oil companies in the eastern state of Tamaulipas and another 446 million dollars in Mexico City. It has also provided 65.4 million dollars to gas initiatives in the northern state of Nuevo Leon and 626.7 million dollars in Mexico City.

In addition, it has contributed 1.5 billion dollars for the supply of gas through pipelines to the final consumer; 324 million dollars for the extraction of oil and gas; 216 million dollars for the construction of public works for oil and gas; 126 million dollars for the manufacture of products derived from oil and coal; nearly seven million dollars for oil refining; 0.65 million dollars for the commercialisation of fuels; 0.25 million dollars for the drilling and maintenance of hydrocarbon wells; as well as 0.25 million dollars for oil platform maintenance and services.

In February, Bancomext granted a loan of 7.1 million dollars to Grupo Diarqco, in what it presented as the first credit to a private Mexican company in the industry, to exploit an oil field in the southeastern state of Tabasco.

Nafin, which grants credits and guarantees to public and private projects, created in 2014 the Energy Impulse Programme for these initiatives, endowed with more than a billion dollars.

It also manages, along with the economy ministry, the Public Trust to Promote the Development of Energy Industry National Suppliers and Contractors, designed for the industrial promotion of local production chains and direct investment in the energy industry, which this year has a fund of some 41 million dollars.

Missing: social and environmental safeguards

As in the case of the Morelos Integral Project, the gas pipelines have been a source of conflict with local communities, arising from the lack of socio-environmental safeguards and standards to guarantee that a project and its financing will respect the human rights of potentially affected communities.

Nafin and Banobras lack such safeguards, while Bacomext has had an “Environmental and Social Risk Management System Guide” since 2017, with no evidence of whether and how it has been applied to energy projects financed since then.

Since 2003, three platforms of international standards have emerged, to which Mexico’s development banks have not adhered, on human rights; social and environmental assessments and impacts; the application of safeguards; stakeholder participation; complaint resolution; and transparency.

The planet needs 80 percent of the global hydrocarbon reserves to stay underground in order for the temperature increase to remain at 1.5 degrees Celsius, as set out in the Paris Agreement on climate change.

The treaty, signed by 196 countries and territories in 2015, will enter into force at year-end and is considered indispensable to avoid irreversible climate disasters and human catastrophes.

Liliana Estrada, a researcher with the Climate Finance Group of Latin America and the Caribbean, told IPS that most investment in energy still goes to fossil fuels.

“After the reform, they have to enter into strategic projects and follow the guidelines of the government; they cannot go against these strategic lines. The gas and gas pipelines became strategic,” with the boost to the megaprojects of the López Obrador administration, said the representative of this coalition of non-governmental organisations and academics.

These credits are part of the fossil fuel subsidies that Mexico has pledged, to several international bodies, to eliminate.

The Mexican energy industry has also attracted international private banks, which have lent 55.95 billion dollars to 12 corporations, according to “Banking on Climate Change: Fossil Fuel Finance Report 2020”, released in March by six international environmental organisations.

The CFE received some 5.4 billion dollars from 12 banks between 2016 and 2019, and Pemex received 48.3 billion dollars from 20 foreign banks.

Based on Huexca’s experience, Castellanos demanded that these investments be stopped.

“If it’s our company, as the government says, then we can close it down. We have to defend the space in which we live, because we only have one planet and it belongs to all of us, it belongs to every living being, and it is our obligation to contribute something to this planet, because we are only here for a short while, we are guests of the earth”, she said.

Estrada called for sustainable financing regulations and questioned the lack of government leadership in this regard.

“Development banks must have safeguards and principles for sustainable investment,” she said. “National regulations are needed, which define climate finance and green finance, what principles govern them, what are the climate risks. The trend should be to increasingly finance green projects and less and less hydrocarbons.”

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Young People Bring Solar Energy to Schools in the Argentine Capital

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Sebastián Ieraci (L), a member of the group of students who in 2014 pushed for the switch to solar energy at the Antonio Devoto High School, stands next to the school's principal Marcelo Mazzeo on the rooftop of the educational institution located in the Buenos Aires neighbourhood of Villa Devoto. Credit: Daniel Gutman/IPS

Sebastián Ieraci (L), a member of the group of students who in 2014 pushed for the switch to solar energy at the Antonio Devoto High School, stands next to the school’s principal Marcelo Mazzeo on the rooftop of the educational institution located in the Buenos Aires neighbourhood of Villa Devoto. Credit: Daniel Gutman/IPS

BUENOS AIRES , Mar 19 2020 (IPS) – “The idea came to a group of schoolmates and me in 2014, but we never thought it could become a reality,” says Sebastián Ieraci, 23, as he points to a multitude of photovoltaic solar panels shining on the roof of the Antonio Devoto High School in the Argentine capital.

The secondary school is one of the first public centres in Buenos Aires that has managed, since last November, to cover 100 percent of its electricity needs from renewable energy generated in the building itself.

Although today only seven of the city’s public schools have solar panels, the authorities have identified another 140 school buildings with the conditions to generate solar energy, and the plan is to gradually equip all of them with solar panels.

But perhaps the most interesting aspect of this case is that it was the students’ own enthusiasm for clean energy and community involvement that allowed the school to be chosen for an experiment that is new to Buenos Aires.

“Now they come to see us from schools in different parts of the country, to see what we have done and to try to replicate it.” — Marcelo Mazzeo

Ieraci, who arrives in a hurry at his former school after his workday at a paint factory, was in his last year of high school in 2014, when law teachers suggested to him and his classmates that they come up with a project for the programme The Legislature and Schools.

The programme, carried out for over 20 years, invites final-year high school students to submit proposals to the Buenos Aires city legislature, in the areas of environment, public spaces, traffic and transport and security.

Once they do so, the students sit on the city legislature for an afternoon to discuss their proposals with students from other schools.

“We came up with the idea of installing solar panels because we knew that the school’s rooftop was not being used for anything and that doing so could be doubly beneficial, both environmentally and economically, since the school could generate its own energy,” says Ieraci during IPS’s visit to his former school.

Aerial view of the rooftops of the primary and secondary schools located across from the main square in Villa Devoto, a residential neighborhood in the Argentine capital. The adjacent schools now have 200 solar panels with an installed capacity of 70 kilowatts, and the surplus is injected into the Buenos Aires electricity grid. Credit: Courtesy of Buenos Aires city government

Aerial view of the rooftops of the primary and secondary schools located across from the main square in Villa Devoto, a residential neighborhood in the Argentine capital. The adjacent schools now have 200 solar panels with an installed capacity of 70 kilowatts, and the surplus is injected into the Buenos Aires electricity grid. Credit: Courtesy of Buenos Aires city government

“Then we started looking for information, and after a month we presented the project. Back then it was a utopia and today seeing these panels makes me very proud, because this is a school that generates a sense of belonging,” he explains.

The school is located in a large two-storey building that preserves the style of the old manor house that Italian immigrant Antonio Devoto had built there at the beginning of the 20th century. Devoto is considered the founder of the middle-class residential neighbourhood that today bears his name.

The school is located across from the main square of Devoto, in an area with many old trees and few tall buildings, full of bars and restaurants, and bursting with vitality far from the centre of Buenos Aires.

The Devoto teenagers’ solar panel project was the winner among more than 70 initiatives that students presented in 2014 to the local legislature, and in 2016 the Buenos Aires city government launched it. The first step was to start feasibility studies in more than 600 school buildings.

But it was in 2017 that the school received the definitive push to move towards solar energy, when it once again presented the project in a competition, this time in BA Elige (Buenos Aires Chooses), a citizen participation programme in which the more than three million inhabitants of Buenos Aires proper vote on the projects they want to see carried out.

On that occasion, the residents of Devoto expressed their opinions online, supporting the installation of solar panels in the neighbourhood schools and thus enabling the authorities to allocate budget funds.

The installation of the solar panels began in August 2019 and took three months. Since November, 87 two-by-one meter solar panels have been in operation on the rooftop of the Antonio Devoto High School.

The primary school next door was soon incorporated into the programme, and since January 113 solar panels have been operating, bringing the total to 200 panels on the adjacent rooftops of the two schools that serve a combined total of 500 students.

Solar panels nearly cover the entire rooftop of the Antonio Devoto High School in Buenos Aires. Until last year the rooftop area was not put to any use. The idea of using that space to generate renewable energy came from students in their final year in 2014, who presented a project to the Buenos Aires city legislature. Credit: Daniel Gutman/IPS

Solar panels nearly cover the entire rooftop of the Antonio Devoto High School in Buenos Aires. Until last year the rooftop area was not put to any use. The idea of using that space to generate renewable energy came from students in their final year in 2014, who presented a project to the Buenos Aires city legislature. Credit: Daniel Gutman/IPS

“In secondary schools, the panels have 30 kilowatts (kW) of installed capacity, and in primary schools, 40. But the most interesting thing is that the primary school injects its surplus energy into the city’s electricity grid, generating credit with the power company,” engineer Andrés Valdivia, head of climate action in the city government’s Ministry of Education, told IPS.

The Ministry reports that the 140 school rooftops declared suitable for the installation of solar panels – because there are few high buildings surrounding them and they receive good solar radiation – have a combined surface area of 145,000 square meters and could have a total installed capacity of 13 megawatts (MW).

Renewable energies – basically, solar and wind – have experienced major growth in Argentina since a fund was created by law in September 2015 to finance the construction of facilities and to guarantee the purchase of the energy generated.

By late 2019, nearly eight percent of the electricity produced in the country came from renewable sources, up from just 2.2 percent in early 2016, according to official statistics.

However, that growth will not continue because the recession and the devaluation of the local currency in Argentina mean that almost no new projects will be launched, say industry analysts.

View of the front of the Antonio Devoto High School, which was built in an old manor house belonging to the Italian immigrant recognised as the founder of the Villa Devoto neighbourhood in Buenos Aires, the capital of Argentina. Credit: Courtesy of Marcelo Mazzeo

View of the front of the Antonio Devoto High School, which was built in an old manor house belonging to the Italian immigrant recognised as the founder of the Villa Devoto neighbourhood in Buenos Aires, the capital of Argentina. Credit: Courtesy of Marcelo Mazzeo

“Ours is not a technical school; we have an orientation in economics and administration. But the kids’ interest in the energy transition surprised us and led us to gather a lot of information together about the subject,” said Marcelo Mazzeo, the principal of the Antonio Devoto High School.

“Now they come to see us from schools in different parts of the country, to see what we have done and to try to replicate it,” he told IPS.

Félix Aban, one of the law teachers who worked with the students on the project and is now the school’s vice-principal, said that “one of the most interesting things was that in 2014 the kids suggested that the surplus energy generated by their schools could be injected into the power grid, when that possibility was not even being discussed in Argentina.”

In fact, the law on distributed (or decentralised) energy was not approved by Congress until 2017, under the official name “Regime to foment distributed renewable energy generation integrated into the public electricity grid”.

“They investigated and found that in other countries individual generators fed power into the grid. So we can say that the kids at this school were really ahead of the game,” said Aban.

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Water Is Worth More than Milk in Extrema, Brazil

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Biodiversity, Civil Society, Development & Aid, Economy & Trade, Editors’ Choice, Environment, Featured, Food & Agriculture, Green Economy, Headlines, Integration and Development Brazilian-style, Latin America & the Caribbean, Projects, Regional Categories, TerraViva United Nations, Water & Sanitation

Water & Sanitation

Elias Cardoso is proud of the restored forests on his 67-hectare farm, where he has protected and reforested a dozen springs as well as streams. "I was a guinea pig for the Water Conservator project, they called me crazy," when the mayor's office was not yet paying for it in Extrema, a municipality in southeastern Brazil. Credit: Mario Osava/IPS

Elias Cardoso is proud of the restored forests on his 67-hectare farm, where he has protected and reforested a dozen springs as well as streams. “I was a guinea pig for the Water Conservator project, they called me crazy,” when the mayor’s office was not yet paying for it in Extrema, a municipality in southeastern Brazil. Credit: Mario Osava/IPS

EXTREMA, Brazil, Nov 29 2019 (IPS) – “They called me crazy” for fencing in the area where the cows went to drink water, said Elias Cardoso, on his 67-hectare farm in Extrema, a municipality 110 km from São Paulo, Brazil’s largest metropolis.

“I realized the water was going to run out, with cattle trampling the spring. Then I fenced in the springs and streams,” said the 60-year-old rancher. “But I left gates to the livestock drinking areas.”

Cardoso was a pioneer, getting the jump on the Water Conservancy Project, launched by the local government in 2005 with the support of the international environmental organisation The Nature Conservancy and the Forest Institute of the southeastern state of Minas Gerais, where Extrema, population 36,000, is located at the southern tip.

The project follows the fundamentals of the National Water Agency‘s Water Producer Programme, which focuses on different ways to preserve water resources and improve their quality, such as measures to conserve soil, preventing sedimentation of rivers and lakes.

But at the core of the project is the Payments for Environmental Services (PES), which in the case of Extrema compensate rural landowners for land they no longer use for crops or livestock, to restore forests or protect with fences.

The “Water Conservator” (Conservador das Águas) began operating in 2007, with contracts offered by the PES to farmers who reforest and protect springs, riverbanks and hilltops, which are numerous in Extrema because it is located in the Sierra de Mantiqueira, a chain of mountains that extends for about 100,000 square km.

“Then everyone jumped on board,” Cardoso said, referring to the project in the Arroyo das Posses basin, where he lives and where the environmental and water initiative began and had the biggest impact.

View of the new landscape in the hilly area around Extrema, after the reforestation of thousands of hectares in three basins in this municipality in southeastern Brazil, where the local government has fomented the process of recovery by paying landowners for environmental services. The priority is to restore the forests at the headwaters of the rivers and on hilltops and protect them with cattle fences. Credit: Mario Osava/IPS

View of the new landscape in the hilly area around Extrema, after the reforestation of thousands of hectares in three basins in this municipality in southeastern Brazil, where the local government has fomented the process of recovery by paying landowners for environmental services. The priority is to restore the forests at the headwaters of the rivers and on hilltops and protect them with cattle fences. Credit: Mario Osava/IPS

In the 14 years since it was launched, the project has only worked fully in three basins, where two million trees were planted and close to 500 springs were protected. It is now being extended to seven other watersheds.

“The goal is to reach 40 percent of forest cover with native species” in the municipality and “so far we already have 25 percent covered, and 10 percent is thanks to the Water Conservator,” said Paulo Henrique Pereira, promoter of the project as Environment Secretary in Extrema since 1995.

“Planting trees is easy, creating a forest is more complex,” the 50-year-old biologist told IPS, stressing that it’s not just about planting trees to “produce” and conserve water.

The project began with the prospecting of areas and the training of technicians, after the approval of a municipal PES statute, since there is no national law on remunerated environmental services.

“The bottleneck is that there is no skilled workforce” to reforest and implement water conservation measures, Pereira said.

The project now has its own nursery for the large-scale production of seedlings of native tree species, to avoid the past dependence on external acquisitions or donations, which drove up costs and made planning more complex.

Since 2005 Paulo Henrique Pereira, Secretary of Environment in Extrema since 1995, has promoted the Water Conservator Project, which has won national and international awards for its success in recovering and preserving springs and streams, by paying for environmental services to rural landowners who reforest in this municipality in southeastern Brazil. "Planting trees is easy, creating a forest is more complex," he says. Credit: Mario Osava/IPS

Since 2005 Paulo Henrique Pereira, Secretary of Environment in Extrema since 1995, has promoted the Water Conservator Project, which has won national and international awards for its success in recovering and preserving springs and streams, by paying for environmental services to rural landowners who reforest in this municipality in southeastern Brazil. “Planting trees is easy, creating a forest is more complex,” he says. Credit: Mario Osava/IPS

The success of Extrema’s project, which has won dozens of national and international good practice awards, “is due to good management, which does not depend on the continuity of government,” said the biologist, although he admitted that it helped that he had been in the local Secretariat of the Environment for 24 years and that the mayors were of the same political orientation.

“It is a well-established project that is not likely to suffer setbacks,” he said.

The fact that the project offers both environmental and economic benefits helps keep it alive.

“My grandfather, who spent his life deforesting his property, initially rejected the project. It didn’t make sense to him to plant the same trees he had felled to make pasture for cattle,” said Aline Oliveira, a 19-year-old engineering student who is proud of the quality of life achieved in Extrema.

“When I was a girl, I didn’t accept the idea of protecting springs to preserve water either. I thought it was absurd to plant trees to increase water, because planting 200 or 300 trees would consume a lot of water. That was how I used to think, but then in practice I saw that springs survived in intact forest areas,” she said.

Later, when the PES arrived in the area, her grandfather gave in and more than 10 springs on the 112-hectare farm were reforested and protected. The payment is 100 municipal monetary units per hectare each year, currently equivalent to about 68 dollars.

Aline Oliveira studies engineering and lives on her family's farm in southeastern Brazil. She is proud of the way life has improved in Extrema, a process that began with the establishment of the Payments for Environmental Services system, which guarantees income to farmers and ranchers for reforesting watersheds. It is a secure income at a time of falling milk prices and in a town far from the dairy processing plants. Credit: Mario Osava/IPS

Aline Oliveira studies engineering and lives on her family’s farm in southeastern Brazil. She is proud of the way life has improved in Extrema, a process that began with the establishment of the Payments for Environmental Services system, which guarantees income to farmers and ranchers for reforesting watersheds. It is a secure income at a time of falling milk prices and in a town far from the dairy processing plants. Credit: Mario Osava/IPS

“The PES is a secure income, while milk prices have dropped, and everything has become more expensive than milk in the last 10 years. In addition, there were losses due to lack of transportation, since there is no major dairy processing plant within 50 km,” she told IPS.

Thanks to the municipal payments, “we were able to invest in cows with better genetics, buy a milking parlor and improve health care for the cattle, thus increasing productivity,” which compensated for the reduction in pastures, added the student, who works for the project.

The programme coincided with a major improvement in the economy and quality of life in Extrema. “I was born in Joanópolis, where there were better hospitals than in Extrema. But now it’s the other way around” and people from there come to Extrema, 20 km away, for heath care, Oliveira said.

This is also due to the industrialisation experienced by Extrema in recent decades, which becomes evident during a walk around the town, where many new industrial plants can be seen.

The water conservation project has also contributed to the water supply for a huge population in the surrounding area.

Arlindo Cortês, head of environmental management at Extrema's Secretariat of the Environment, stands in the nursery where seedlings are grown for reforestation in this municipality in southeastern Brazil. "Building reservoirs does not ensure water supply if the watershed is deforested, degraded, sedimented. There will be floods and water shortages because the rainwater doesn't infiltrate the soil," he explains. Credit: Mario Osava/IPS

Arlindo Cortês, head of environmental management at Extrema’s Secretariat of the Environment, stands in the nursery where seedlings are grown for reforestation in this municipality in southeastern Brazil. “Building reservoirs does not ensure water supply if the watershed is deforested, degraded, sedimented. There will be floods and water shortages because the rainwater doesn’t infiltrate the soil,” he explains. Credit: Mario Osava/IPS

The Jaguari River, which crosses Extrema, receives water from fortified streams and increases the capacity of the Jaguari reservoir, part of the Cantareira system, which supplies 7.5 million people in greater São Paulo, one-third of the total population of the metropolis.

“If the watersheds are deforested, degraded and sedimented, merely building reservoirs solves nothing,” said Arlindo Cortês, the head of environmental management at Extrema’s Secretariat of the Environment.

Extrema’s efforts have translated into local benefits, but contributed little to the water supply in São Paulo, partly because it is over 100 km away, said Marco Antonio Lopez Barros, superintendent of Water Production for the Metropolitan Region at the local Sanitation Company, Sabesp.

“No increase in the capacity of the Cantareira System has been identified since the 1970s,” he said in an interview with IPS.

“Thousands of similar initiatives will be necessary” to actually have an impact in São Paulo, because of the level of consumption by its 22 million inhabitants, he said, adding that improvements in basic sanitation in cities have greater effects.

São Paulo experienced a water crisis, with periods of rationing, after the 2014 drought in south-central Brazil, and faces new threats this year, as it has rained less than average.

Extrema also felt the shortage. “Since 2014 we have only had weak rains,” said Cardoso. The problem is the destruction of forests by the expansion of cattle ranching in the last three decades.

“The creek where I used to swim has lost 90 percent of its water. The recovery will take 50 years, the benefits will only be felt by our children,” he said.

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IDB Modernises Crucial Social and Environmental Safeguards

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Civil Society, Development & Aid, Economy & Trade, Editors’ Choice, Environment, Eye on the IFIs, Global Governance, Green Economy, Headlines, Integration and Development Brazilian-style, Latin America & the Caribbean, Projects, Regional Categories, TerraViva United Nations

Development & Aid

The IDB finances sustainable transportation projects in Latin America and the Caribbean, but these and other works to which the bank provides loans must meet social and environmental standards. The picture shows part of Mexico City's Metrobus public transport system, which runs on a dedicated lane with bi-articulated units. Credit: Emilio Godoy/IPS

The IDB finances sustainable transportation projects in Latin America and the Caribbean, but these and other works to which the bank provides loans must meet social and environmental standards. The picture shows part of Mexico City’s Metrobus public transport system, which runs on a dedicated lane with bi-articulated units. Credit: Emilio Godoy/IPS

MEXICO CITY, Nov 27 2019 (IPS) – The Inter-American Development Bank (IDB) is in the process of modernising the social and environmental safeguards that govern the financing of projects considered vital for the construction of sustainable infrastructure in the Latin American region.

The participation of social organisations and local communities in the analysis of projects, dissemination of information, gender perspective and the focus on climate change are major challenges in this process of reforming the safeguards.

The Washington-based IDB will begin regional consultations with civil society organisations in January to upgrade the standards of those safeguards, approved between 1998 and 2010, after it closed the public consultation for the draft of the new environmental and social sustainability policy for its private sector lending arm IDB Invest on Oct. 15.

Vanessa Torres, deputy director of the Colombian NGO Environment and Society, told IPS that a Latin American coalition of NGOs and local communities asked for adequate time to coordinate their positions and exchange and study information.

“There will be an opportunity to update the risks and comment on the substance. They will have to be adapted to the characteristics of the region. We have not yet seen the draft of the update. Our concern is that substantial aspects, which are already in the current safeguards, not be watered down.” — Carolina Juaneda

“The communities affected by the projects must be informed in order for them to participate. This is a positive process, because the bank has been very open, but we are waiting to see what was included in the draft,” said Torres, an environmental lawyer.

The IDB, whose president is Colombian businessman Luis Moreno, will disseminate the draft at the end of November and stage consultations in 2020 in Argentina, Panama, Jamaica and Peru.

In September 2020, the bank’s Board of Executive Directors, made up of 14 representatives from several blocks of countries, will receive the final version and the implementation plan.

Among other measures, at the end of the process, in terms of environmental and social policy in project finance, the IDB will adopt the eight principles of the International Finance Corporation (IFC), the private lending arm of the World Bank, on issues such as environmental impacts, labour issues, biodiversity conservation and indigenous peoples, and will apparently incorporate a gender approach and stakeholder participation and information dissemination.

The multilateral institution proposes an integrated policy framework, with a socio-environmental statement and 10 technical standards for the management of environmental and social risks.

“There will be an opportunity to update the risks and comment on the substance. They will have to be adapted to the characteristics of the region. We have not yet seen the draft of the update. Our concern is that substantial aspects, which are already in the current safeguards, not be watered down,” said Carolina Juaneda, a consultant for the Latin America Program of the non-governmental Washington-based Bank Information Center.

The current IDB Environmental Safeguards and Compliance Policy consists of environmental, population resettlement, disaster risk management, gender equality, indigenous peoples and access to information requirements.

In 2018, the IDB approved 96 sovereign guaranteed (backed by a government) loan projects with total financing of 13.4 billion dollars, and disbursed more than 9.9 billion dollars.

The bank ranks the level of risk in terms of a project’s environmental and social sustainability. In 2018, eight percent of the loans were granted to high risk projects, 24 percent substantial risk, 31 percent low risk and 37 percent moderate, according to the 2018 Sustainability Report.

The IDB will investigate whether IDB Invest, its private finance arm, failed to comply with the safeguards in the loan for the Ituango hydroelectric plant, which is being built on the Cauca River, 170 km from the city of Medellín, Colombia, after a serious accident with the dam in 2018. Credit: Courtesy of Colombia's Attorney General's Office

The IDB will investigate whether IDB Invest, its private finance arm, failed to comply with the safeguards in the loan for the Ituango hydroelectric plant, which is being built on the Cauca River, 170 km from the city of Medellín, Colombia, after a serious accident with the dam in 2018. Credit: Courtesy of Colombia’s Attorney General’s Office

Ten percent of the projects failed to meet the standards, 20 percent adhered to the guidelines, 21 percent required immediate corrective action, and 49 percent had partially consistent compliance with the requirements.

The IDB has 2,596 active projects worth 60.8 billion dollars, most of which are being implemented by Argentina, Brazil, Colombia, Mexico and Paraguay in areas like transportation, energy, water and sanitation. In addition, it is evaluating 225 projects for another 19.8 billion dollars.

The ravages of the climate emergency in Latin America and the Caribbean, such as more intense hurricanes, rising temperatures, loss of biodiversity and rising sea levels, make the construction of sustainable infrastructure an imperative.

Safeguards as a tool

Beginning in the 1990s, multilateral financial institutions began to design safeguards that their clients – governments and companies – and the projects they finance must respect, thanks in part to pressure from affected social organisations and communities demanding that the impacts of these ventures be taken into account.

They also put in place mechanisms to process complaints of non-compliance with the standards or requirements set by the safeguards in projects financed by the multilateral banks.

Since last decade, financial institutions have revised these guidelines to adapt them to a changing social and environmental context, such as the worsening of climate change and its effects, including intense storms, droughts and rising temperatures. Currently, the greatest pressure on the banks is for them not to finance hydrocarbon projects, due to the climatic urgency to stop using fossil fuels.

Moreno, who assumed the presidency of the IDB in 2005, will conclude his term in mid-2020 and wants to do so having put in place updated social and environmental standards.

In updating the safeguards, the IDB has developed more than 60 new environmental, social, economic and institutional criteria to be applied in the design, construction, operation and final conclusion of a project financed by the institution.

The update stems from recommendations made in 2018 by the IDB Office of Evaluation and Oversight, which found that a large percentage of IDB projects that were reviewed did not fully comply with the initial safeguards requirements prior to loan authorisation and that the requirements were not addressed during execution.

The organisations involved in the update process mention, as an example of unsustainable infrastructure, the Ituango hydroelectric dam, built by Empresas Públicas de Medellín on the Cauca River, Colombia’s largest river. The IDB provided 550 million dollars for the project and administered part of the one billion dollars provided by other banks.

In May 2018, torrential rains overflowed the river, causing the collapse of the tunnel built to divert that flow, and as a result landslides, floods and the displacement of thousands of people from their homes, raising serious questions about the sustainability of the country’s largest hydroelectric project and one of the biggest in Latin America.

In June of that year, 477 residents of eight municipalities in the northwestern department of Antioquia requested that the Independent Consultation and Investigation Mechanism (Mici), the bank’s autonomous body responsible for evaluating performance against its standards, investigate whether the IDB and IDB Invest respected their own socioenvironmental safeguards.

The IDB Board of Directors resolved on Oct. 29 that it would inquire whether IDB Invest had complied.

Between 2010 and September 2019, Mici received 151 complaints, of which 144 referred to the IDB, four to IBD Invest and four to IDB Lab, a platform that seeks to mobilise capital, knowledge and connections to promote innovation in the region. Thirteen are active, of which seven are in the consultation phase, five in the compliance review phase and one is being assessed for eligibility.

This year, Mici has three cases open from Argentina and two from Brazil, while it rejected two complaints from Argentina and Brazil, and it has one each from Barbados, Colombia, Ecuador, Guyana and Paraguay, respectively, while it declared a complaint from Chile ineligible.

The organisations say the bank’s sustainability framework should include a comprehensive approach embodied in the operational strategy and safeguards, with an exclusion list of hydrocarbon projects.

The IDB has an active regional initiative to promote the reduction of polluting emissions and improvements in efficiency through the use of gas, backing for Guyana’s oil sector and other support for the “sustainable and responsible development” of mining and hydrocarbons in Colombia.

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