New research from civil society groups in Indonesia, Pakistan and Bangladesh shows how the World Bank Group is getting countries hooked on fossil gas instead of ring-fencing support for the sustainable, renewable energy transition.
(AMSTERDAM, The Netherlands–April 14, 2022) The World Bank and its private sector arm IFC continue their substantial support for the development of fossil gas and LNG infrastructure. This is done through financing gas-fired power stations, pipelines and LNG regasification plants in Indonesia, Bangladesh and Pakistan. Both institutions bear responsibility for these country’s unsustainable and volatile gas-based energy models.
There is US$379 billion of new gas infrastructure planned in Asia which is at risk of becoming stranded assets. Yet, the nations of the world are transitioning away from fossil fuels to meet the goals of the Paris Agreement. Planned gas investments in Asia include $189 billion of gas-fired power plants, $54 billion of gas pipelines, and $136 billion of new liquefied natural gas (LNG) import and export terminals. If built and run at full capacity, these would contribute to pushing the world way beyond 1.5°C of warming.
These case studies published today by civil society groups in Indonesia, Pakistan and Bangladesh show how the World Bank Group is getting countries hooked on fossil gas instead of ring-fencing support for the sustainable, renewable energy transition.
The Trouble with Gas in Indonesia: The World Bank’s Country Strategy for Indonesia (Country Partnership Framework–CPF 2021–24), supports the “acceleration of deployment of natural gas and biogas”.
Andri Prasetiyo of Trend Asia in Indonesia says “New gas infrastructure planning may include new fossil gas power stations, pipelines, and ports, LNG import terminals, and regasification plants. It will hinder “the real” Indonesia’s clean and renewable energy transition efforts. Such projects come with environmental and health impacts as well as methane emissions that will contribute significantly to Indonesia’s GHG emissions in the midst of the climate crisis.”
The Trouble with Gas in Pakistan: The World Bank and IFC have supported gas and LNG energy in Pakistan which has resulted in Pakistan’s dependence on expensive fossil gas in 2022.
Zain Moulvi of Alternative Law Collective in Pakistan said: “The World Bank must recognise that their previous policy of supporting fossil gas and LNG infrastructure has been a costly mistake that has contributed to Pakistan’s reliance on imported LNG today and the exorbitant spot prices of suppliers”.
The Trouble with Gas in Bangladesh: In Bangladesh the World Bank must remove any references to exploration of domestic gas resources and importing LNG as priorities in the planned Bangladesh Country Partnership Framework 2022–2026. In Bangladesh the World Bank Group must urgently reorientate its priorities and financing to rapidly scale up the energy transition that leapfrogs fossil gas ‘from coal to clean’ in Bangladesh, based on the Polluter-Pays Principle.
Fran Witt of Recourse, The Netherlands added: “These studies find that the World Bank Group does not systematically consult with civil society in the countries where it operates. We are calling for the Bank to hold open and transparent dialogue to respond to local energy needs and environmental concerns. Openness and transparency should also be embedded in the preparation of new World Bank development policy finance and technical assistance and IFC equity investments and loans that may support fossil gas expansion.”
The World Bank Group should use its limited resources to support governments to transition rapidly away from fossil gas and imported LNG focusing on ensuring long-term energy security. This would include an emphasis on sustainable renewables and storage as well as grid flexibility and upgrades.
There should be no back-sliding on the commitment to tackle the climate crisis, and phasing out fossil fuels, including fossil gas. This has to be a priority if the World Bank Group is to align with the goals of the Paris Agreement.
For more information please see:
https://www.re-course.org/news/the-trouble-with-gas-in-indonesia/
https://www.re-course.org/news/the-trouble-with-gas-in-pakistan/
https://www.re-course.org/news/the-trouble-with-gas-in-bangladesh/
Media Contacts:
Andri Prasetiyo, [email protected]
Fran Witt, [email protected]
Zain Moulvi, [email protected]
Zakir Hossain Khan, Change Initiative Bangladesh, [email protected]