Bankwatch Mail March 2013 CEE Bankwatch Network's Newsletter on International Development Finance
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ISSUE 55 BANKWATCH MAIL March 2013 CEE Bankwatch Network's newsletter on international development finance www.bankwatch.org New nuclear risks in Ukraine – EBRD EIB hit by activist urged not to back lifetime extensions hoax, pledges to continue hitting under the guise of ‘safety’ climate The European Bank for Reconstruction to safety measures, including the decom- The European Investment Bank’s and Development is expected to take missioning of old reactors, not prolonging annual press conference in the final a decision this month on whether their lifetime.” week of February proved to be or not to provide a EUR 300 million Chief among the concerns of campaign- significantly more revealing about loan for a nuclear power plant ers is that the SUP has not been designed the bank’s commitment to fueling to guarantee the safe operation of Ukrain- Safety Upgrade Programme (SUP) climate change than is the norm for ian nuclear units after the expiration of the in Ukraine. Bankwatch and other original design life. the EU bank. environment groups are questioning As Holovko explains, the option – clearly the logic of the proposed SUP as it a very realistic option under Energoatom Reacting to a fake press release – circulated by plans – of plant operations exceeding the will result in some of Ukraine’s old activists on the eve of the bank’s set piece event design period has not been assessed: “In nuclear units continuing to operate in Brussels – which had announced that the EIB the main ecological assessment report would be pulling out of coal investments with for another 20 years. prepared for the SUP, only impacts within immediate effect, EIB president Werner Hoyer the design lifetime were analysed. To take told journalists that such claims were “pure non- In recent weeks, Alexander Shavlakov, the the specific case of the South Ukrainian sense”. Nonetheless, Hoyer pressed on and stuck technical director of Energoatom, the state Unit 1 that expires this year, its potential to his script, maintaining that the EIB remains a nuclear operator, acknowledged the real- environmental impacts beyond the closure frontrunner in the fight against climate change. ity of the programme, telling a meeting date have been deemed by Energoatom to The surrealism inside the European Council in February of the trade union of Ukrain- be ‘non-significant’ because ‘in previous building mounted as the EIB president then re- ian nuclear industry workers: “Without years of operation no significant impacts ceived the ‘Coal Down’ award of a flower vase the Safety Upgrade Programme, [nuclear] were observed’. This is a highly irrespon- in the shape of a smokestack from a ‘citizen of units’ lifetime extension is out of the ques- sible approach to nuclear safety.” Europe’, one of the activists involved in the tar- tion. We should be conscious of this.” The whole concept of nuclear safety in geting of the EIB. The ‘nuclear safety’ billing of the SUP Ukraine remains highly contentious. The fi- Journalists further pressed President Hoyer appears to be blinding EBRD decision- nal decision on whether to close or extend and EIB colleagues about the bank’s efforts to makers to the full implications of the pro- specific nuclear operations lies with the combat climate change and to clarify its position posed investment, although discussions state nuclear regulating authority (SNRIU) on future lending for coal-fired power plants in and negotiations around the deal have based on periodic safety review results. Europe. It was reiterated that the EIB was not cur- been taking longer than expected – the The capability, though, of SNRIU to base rently ready to announce dropping coal from its EBRD board date for the decision is now its decisions purely on safety considera- portfolio, and that gas too will continue to feature scheduled for March 12, some six months tions remains far from certain – currently in its multi-million euro energy lending. later than planned. no nuclear decommissioning plans exist, The EIB is currently undertaking a review of its For Iryna Holovko, a Bankwatch energy the only plan being to extend the lifetime energy lending policy, a process that takes place campaigner in Ukraine, there is a funda- of nuclear units. once every 5-6 years. Bankwatch and NGO allies mental issue at stake: “Would the proposed Another major question mark hang- such as Counter Balance (the group behind the EBRD loan help to guarantee the safe op- ing over the SUP deal concerns financ- EIB hoax action, with help from the Yes Lab) that eration of Ukraine’s 15 operating nuclear ing – principally whether Energoatom is have been participating in the public consulta- units, 12 of which are designed to finish in any position to contribute the required tion for the policy review contend that such is the operating by 2020? Our answer is ‘no’. 60 percent of the programme’s overall acuteness of the climate change challenge the The SUP has got to be exclusively geared funding. Continued on page 2 Continued on page 2 Inside Page 5: Bankwatch prize-winners lead Page 7: Commission guidance for EIB on the way on sustainable EU funding sustainable energy Page 3: The case for building renovation Page 6: Major challenges for EBRD in Page 8: The wild east – Shell’s shale gas in the EU budget Kosovo move in Ukraine Page 4: More crime and corruption at Page 7: Kyrgyzstan seeks to control Serbian mine Canadian gold miners he renovation of convergence, in line with the buildings to high Building renovation Europe 2020 Strategy. And Tenergy performance with the need to restore and standards has the potential reinforce fiscal discipline, to be the most cost effective must be top of the “the value of each euro spent investment any European must be carefully examined nation can make, given the ensuring that the European benefits in terms of job Added Value and quality of creation, quality of life, EU budget priority spending under the future MFF economic stimulus and are enhanced”. energy security that such BPIE believes that investments deliver. For list for 2014–2020 allocating MFF resources these reasons the Buildings to building renovation is Performance Institute a wise investment that Europe (BPIE) is advocating Then there are the health as a current assignment. can help realise multiple for the maximum possible benefits from improved BPIE believes that if the co- benefits all across economic, allocation of EU funds to living conditions and lower benefits were systematically societal, environmental and the energy renovation of air pollution levels, resulting valued and monetised, they energy security dimensions. buildings under the recently in fewer working days lost could significantly exceed the Accordingly, we advocate agreed multi-annual to ill health and a lower energy cost savings. assigning high priority for financial framework (MFF) burden on state health So what have these multiple programmes that stimulate for 2014-2020. services. Addressing the dire benefits got to do with the building owners – from situation of families unable to MFF? Rather a lot, as it private households and small This bold assertion stems afford keeping their homes happens. businesses to public bodies from the fact that there is a adequately heated can only The EU’s new Energy and commercial real estate multiplicity of benefits that be solved in a long term, Efficiency Directive, adopted firms – to renovate their arise when energy saving sustainable and cost effective in October 2012, includes properties to very high energy from page 1 measures are applied to way by significantly improving a requirement for member performance levels. existing buildings. Most the thermal performance and states to develop long term Public funding alone cannot In December activists delivered a nuclear safety obvious are the savings on heating system efficiencies of renovation strategies for provide all the investment message directly to the EBRD's office in Kiev from page 1 EU MONEY FOR COAL-FIRED energy bills that accrue to the the housing stock. national building stocks. required to improve Europe’s building owner or investor. Yet building stock, so spending EIB must grasp this opportunity and commit to no Following nuclear ‘stress-tests’ imple- POWER PLANTS: HOW THE the totality of benefits is in programmes need to be further financing of coal fired power plants. Addressing the dire situation of families mented in 2011, the cost of Ukraine’s SUP EU'S BANK IS HELPING TO fact much greater. designed in a way that they According to Berber Verpoest of Counter Bal- rose to EUR 1.45 billion. In tandem with a DRIVE CLIMATE CHANGE Some of these additional unable to afford keeping their homes leverage private capital – be ance, “The presentation of this award and the loan from Euratom, the EBRD is expected benefits are also realised by “ that building owners’ own hoax press release were meant to emphasise the to provide up to 40 percent of the project the owner/investor, such as adequately heated can only be solved in a financial resources, or funding EIB loans to coal 2007–2011: EUR 2 billion deep contradiction at the heart of the EIB. On the costs. The remainder should be covered by improved comfort, better from financial providers one hand, this is the bank of the EU with the goal long term, sustainable and cost effective Energoatom’s own resources. internal air quality, improved and the wider investment EIB loans to fossil fuels 2007–2011: to fight climate change; on the other hand, the However falling tariffs announced in sound insulation and way by significantly improving the community. 19 billion euros (a third of overall energy EIB has been lending billions to coal, gas and oth- January this year for Energoatom’s electric- increased property value (sale Deep renovation of national lending) er fossil fuels and until last year its dirty energy thermal performance and heating system ity will undermine the company’s ability to or rental).